Financial Statement Analysis For Haitong Securities Company Based On Strategy Theory

With the rapid development of China's securities industry over the past decade,the competition in the industry is becoming increasingly intense.Not only more foreign investment banks entered into our domestic market,but also the arising internet finance has begun to hit the traditional business model.Under such circumstances,domestic securities companies would pay more attention to the strategic choice and its implementation to transform into an integrated financial groups and realize its internationalism.Compared with the traditional method when financial statements analysis is just based on the previous financial data to evaluate its operating conditions and predict its future development,the analytic result is supposed to be a more comprehensive and objective assessment of business conditions and business trends from the perspective of business development strategy and the aim to analyze the financial statements.This paper chooses Haitong Securities Co.,Ltd.as the analysis target,to strategic analysis as a starting point,using PEST analysis method to analyze the development of securities companies in which the industry environment,using SWOT Analysis to Discuss the Internal Advantages and Disadvantages of Haitong Securities and the opportunities and threats facing external.Based on financial analysis,use the basic data of the balance sheet,income statement and cash flow statement in the annual financial statements for the year 2014 to 2016.Based on the corporate development strategy described in the annual report,the enterprise's assets and liabilities structure,main business structure,operating conditions and cash flow to make an analysis,and combined with the risk indicators of securities companies,discuss the effect of enterprise strategy selection and implementation.To assist strategic decision-making for the purpose,through the financial statement analysis of the future development of enterprises to make recommendations for improvement.The method of financial statements in this paper mainly uses the trend method and the ratio method,the financial statements of Haitong Securities were analyzed from 2014 to 2016,discuss the impact of the "one body two wings" strategy,brokerage businesstransformation strategy and financial financing strategy on corporate asset structure,operating conditions and cash flow.At the same time selected the industry similar size,profitability comparable to the two large-scale integrated broker—CITIC Securities and Guotai Junan Securities,to carry out the horizontal analysis of the financial indicators,compare the impact of their respective development strategies on business operations and industry status.