A Comparative Analysis Of Financial Performance,Policy And Strategies On GAC GROUP And GEELY AUTO HOLDINGS

The car industry is one of the pillar industry of our country,occupy the important position in national economy.The golden age of rapid development of auto industry is from 2000 to 2017 year in our country and car sales in China surpassed the United States in 2009,china is the largest car market in the world.However,along with the growth of our country economic is slowing,automobile industry enters into the stage of slow growth,the terminal market pattern is dividing gradually.The market competition become from the "share the big cake" to "strive for cake".As the car market structure’s change,the change of industrial structure and the rise of new energy vehicles,the urgent thing of development in auto.industry is to speed up the transformation and upgrading in our country.Through comparative analysis of financial data to Gac group and Geely auto in the paper,and business management more clearly recognize the company’s existing financial performance,business models,financial policy need to be optimized and improved,then have relevant suggestions;Make investors more in-depth understand the two companies’profit ability,risk control ability,the ability of value creation and so on,which will provide valuable reference for investment decisions.This paper is divided into seven chapters.The first chapter briefly describes the research background,significance,content and framework;The second chapter is the automobile industry analysis,mainly analyses the present situation,development trend of industry and the basic condition of the two companies;The third chapter is the two companies’3D analysis of financial statements;The fourth chapter is the analysis of the two main financial indicators;The fifth chapter is the analysis of the two companies’business model;The sixth chapter is the evaluation of the two companies’ financial policy and financial analysis of matrix;The seventh chapter is conclusion and Suggestions.We have main conclusion from the paper,in terms of financial performance,the two companies have advantages and disadvantages in terms of profitability,liquidity,solvency and cash generation.Among them,gac group has strong sales profitability,liquidity and debt paying ability,but weak assets and capital profitability and cash generation ability.Geely automobile is weak in sales profitability and liquidity,but strong in assets and capital profitability,debt paying ability and cash generation ability.From the perspective of financial policies,the total debt ratio of gac group is low,the debt ratio with interest is high,and the debt ratio of geely automobile is high,but it is basically interest-free.The cash dividend policy of the two companies is stable and the retention rate is low.Working capital management efficiency is high,OPM strategy is successful;Investment policies were stable,and total assets,long-term assets and current assets continued to grow.From the perspective of financial strategy,the two companies are short of capital and poor value creation ability,and fail to create value for the company.Main Suggestions are following,in terms of management policies,they need to actively promote the reform of system and mechanism,optimize the management level,enhance the efficiency of management,train and introduce talents;Accelerate the capacity expansion,reduce the production cost;Increase investment in R&D,insist on innovation drive,promote the brand and technology;Active sales policy,strengthening the Internet marketing.In terms of financial policy,improve the working capital management performance by the brand influence,improve the payables and advance payments,strengthen the OPM stategy;Control management and financial expenses,reduce interest expense,and modest increase in sales cost;In terms of development stategy,vigorously promote electric,intelligent and internet marketing,grab the commanding heights of industrial development,speed up to promote the new energy automotive product development and production;Actively promote overseas development strategy,global R&D network layout,increase the intensity of open innovation,to include the development,active cooperation to cope with cross-border competition,build open fusion,integrated innovation,cross-border collaboration platform for the auto industry.