Research On The Financing Structure Of Jinming Precision Machinery Under The Sustainable Growth Model

Fund is the source of a company's survival,whether the financing structure is reasonable for enterprises to achieve sustainable growth is essential."Sustainability" in the model of sustainable growth means that the interests of shareholders can be created in the stable operation of the enterprise.However,if the enterprise grows too fast,it will lead to capital strain and even break the capital chain.Therefore,the sustainable growth model proposed: as far as possible without consuming the financial resources of enterprises on the basis of achieving the maximum growth.Chinese macro-economy in the stage of slowing growth now,the development of various industries in recent years are not ideal,the press industry is no exception,the surface of the domestic market demand is larger,but most of the presses industry listed companies are in successive years Loss of the state,and the actual growth rate of many companies are higher than the sustainable growth rate,Jinming Seiki Co.,Ltd.is the most typical example.At this time,it is necessary for how to make the financial resources in the enterprise under the premise of stable growth and maximize shareholder value to find out the way,which is the focus and difficult of this study.In this paper,the paper analyzes the financing structure,the sustainable growth model and the relationship between the financing structure and the sustainable growth model in the process of collating domestic and foreign literature.Based on the sustainable growth model,the MM theory,the optimal financing theory and on the basis of the theory of trade-off,using the five years annual report of Jin Ming Seiki to finish the internal financing,debt financing and equity financing of Jinming Seiki of the status quo,and then to analyze the financing structure of Jinming Seiki,This paper analyzes the profitability,operational capacity,solvency and growth ability of Jinming Seiki,and used the comparative analysis method to analyze the actual growth rate and sustainable growth rate of Jinming Seiki.Jinming Seiki have many issues in business strategy and financial strategy.For example: the blind expansion of enterprises,to pursue the "pure scale",ignoring the "uneconomical";accounts receivable turnover rate is too low,resulting capital chain more and more tight;capital structure is not a rational optimization,short-term liabilities and long-term debt achieve serious imbalance;at this stage of the operating conditions enterprises are extremely unstable under the premise,still increase the equity financing efforts to enlarge the financial risk.Finally,summed up some suggestions of the development of Jinming Seiki at this stage,the first: clearing financing objectives and financing order,the second: optimize the capital structure,the third: to improve the operational capacity of assets,and the fourth: to use the equity financing reasonably.Most of the presses in China are in a loss year after year.By analyzing the financing structure of Guangdong Jinming Machinery Co.,Ltd,passing the new financing ideas,and promoting the sustainable growth of enterprise.