Research On The Optimization Of The Financing Structure Of Northern Copper

In September 2017,the State Council took Shanxi as a comprehensive supporting reform pilot area of resource-based economy and required the implementation of the reform and revitalization plan for state-owned enterprises.This paper selects the resource-based local state-owned enterprises in Shanxi Province,Northern Copper industry,which relies on bank loans for a long time.There are many financing problems,such as single source of funds,lack of financing methods,high financing cost,mismatch between financing and business,low efficiency of financing use,and neglect of cash flow.This paper will discuss the strategy and scheme of the optimization of its financing structure,not only reducing the financing cost and enriching the financing channels,but also helping the long-term healthy and stable development of enterprises.At the same time,it hopes to form useful experience for other similar state-owned enterprises by dissecting sparrows.This paper uses literature research,on-the-spot investigation,case analysis with simulation comparison and other methods.First of all,it will analyze financing channels and characteristics at the macro level,especially the situation of Chinese state-owned enterprises in the mining field.The paper will research the different forms of internal and external financing commonly and analyze the specific characteristics,advantages and applicable scenarios of various financing methods.The paper focuses on the Chinese market and analyzes the main financing methods commonly,the sources of the main funds and further investigation of the reasons for their selection of state-owned enterprises.The analysis will provide basic background for making financing strategy and designing plan for Northern Copper and also macro analysis for other enterprises.Secondly,the paper will use PEST and SWOT to comprehensively analyze the advantages,disadvantages,opportunities and challenges of Northern Copper in diversified financing,which will be the strategic guidelines for financing optimization.It also shows elements that need to be considered when aenterprise decides whether and how to carry out diversified financing.Third,in designing the financing plan,the paper will use different forms of the debt and equity financing to match the financing needs of the Northern Copper.In terms of debt financing scheme,according to the needs of liquidity,international and domestic trade settlement and financing,cash management and fixed asset financing,it is necessary to match corresponding financial products and introduce bond,trust,insurance and other funds.In the aspect of equity financing scheme,in order to solve the problems of continuous expansion of debt scale,unreasonable debt structure and use advantages of equity financing scheme,we can introduce strategic investors,launch IPO and implement ESOP.Finally,this paper will compare the differences of the new and old financing plan by DuPont Model,and comprehensively analyze a series of benefits of new mode to enterprises,including reducing costs,improving cash flow,effectively motivating employees,reducing risks,improving reputation,and also conducive to improving the comprehensive competitiveness of enterprises.