Research On Financial Strategy Management Of LF Textile Company Limited

Textile industry is a traditional industry.It has a long history and is a significant composition of economic growth in China.Some developed textile and apparel enterprises issue shares to raise funds.The strategy and financial strategy of post-IPO business should be different from before.It's caused by the risk factors of public corporations and the mechanisms of competition.Financial strategy management theory is relatively late to the business strategy.Research on financial strategy management is mainly in the field of financing,investment and M&A,but more research has focused on just one part of the financial strategy.The financial strategy formulation issue has not received enough attention.This paper firstly summarizes the research results of theory in financial strategic management.I have analyzed and evaluated current financial strategy of LF textile company based on textile and apparel industry development status.Current financial strategies have been analyzed with low financial resources usage,no dynamic financial management in the execution of strategy and no rational application of incentive mechanism in the enterprise strategy.What's more,changes in economic accounting environment haven't reflected in current financial evaluation index.According to these,this paper adopts PEST analysis,porter's five-force model,SWOT analysis and other methods.We still research on three aspects in financing,investment and income distribution.The strategy of optimizing financing structure and broadening financing channels is adopted in the new financing strategy.It involves the use of the employee stock,the distribution and financing of the bonds,and the appropriate issuance of the stock to raise money.In the new investment strategy,it proposes to increase the investment in the main business projects,and to diversify the related investment strategy.In the new revenue distribution strategy,it proposes a low cash dividend plus additional dividend policy,and an allocation of stock dividend strategies to the employees.This paper points out the key points of the implementation and control of the new financial strategy,and further analyzes the significance of comprehensive budget management,internal control and risk to financial strategy.