Research On LONGi's Financing Strategy Under Expansion Strategy

Any enterprise has its own development strategy in a certain period of time.It helps enterprises to define the direction,speed and quality of development,select development points and capacity-building,and implement planning and strategies.Enterprise development strategy leads enterprises to constantly revise their own development trajectory in a changing environment,so as to achieve sustained,stable and efficient development,in order to consolidate and enhance market competitiveness.The development of enterprises needs the continuous support of funds.However,in different stages of development and development strategies,the characteristics of enterprises' demand for funds are different,and the ability and channels to obtain funds are also greatly different.When choosing financing modes,enterprises must consider from the perspective of strategic implementation and match their business models.Financing is the first step of enterprise capital operation.Under the condition of market economy,modern enterprises have a wide range of financing methods and channels.In order to achieve their strategic objectives and maximize market value,enterprises need to adopt scientific and effective financing strategies to match their development strategies under certain financing risk constraints.How to establish financing strategies that match the growth and future development strategies of enterprises? How to expand financing channels? How to achieve the best financing effect? These are all important issues of enterprise financing decision-making.LONGi Green Energy Technology Co.,Ltd.(Hereinafter referred to as LONGi)was founded in 2000,and is the largest manufacturer of solar single crystal silicon rods and wafers in the world.Located in Xi'an National Civil Aerospace Industry Base,LONGi was listed on the main board of Shanghai Stock Exchange in April 2012.Up to now,the company has developed into a leading global single crystal silicon wafer enterprise by virtue of its obvious cost advantage in the field of single crystal silicon wafers,and its outstanding technical leadership and cost control ability in non-silicon technology.Such rapid development can not be separated from the guidance of the correct development strategy and the correct financing strategy.Firstly,this paper combs the relevant research on development strategy and financing strategy.Then,it introduces the industry and company of LONGi,describes how LONGi chooses and adjusts its development strategy in accordance with the changing trend of the market since its establishment,and finally chooses the expansion strategy after listing.It alsosummarizes the operation status and financing mode of the enterprise after listing,and understands what financing strategy LONGi adopts for its expansion strategy.The implementation provides strong support and makes use of the power of capital to achieve rapid development.Then,we measure the financing demand of LONGi shares under the rapid expansion,analyze whether its financing strategy matches its expanding development strategy from the perspective of financial risk,and analyze the financing effect;in these analysis process,we also compare LONGi shares with its main competitors in the industry,and draw the advantages of LONGi shares through financial analysis and comparison.Finally,it summarizes the relevant enlightenment and conclusions,and sums up the reasons for the success of LONGi: reasonable selection of financing methods combined with the development strategy,always putting financial risk control in the first place when choosing financing methods,and making effective use of the funds raised,etc.It is hoped that through the analysis of the financing strategies and their effects which complement each other between LONGi and Expansion Strategy,this paper can provide some reference for other enterprises.