| Since the reform and opening up,China has made remarkable achievements in its economy.However,as time flies,due to the decline of demographic dividend,the middle-income trap,the adjustment of international economic pattern and other factors,structural imbalances such as "low-end overcapacity and high-end insufficient capacity" have occurred in China’s economic development.The mode of economic development,which relies too much on demand-side management,can’t adapt to the new development situation.Supply-side reform emerges as required.Taking China’s chlor-alkali chemical industry as an example,although it started earlier and ranked first in the world in 2010,there is still a gap between China and developed countries in terms of production technology and product structure.During 2010-2015,the global chlor-alkali product market was stagnant.In the face of the continuous decline in product prices and the rising cost of raw materials,China’s chlor-alkali industry carried out a series of actions to eliminate backward production capacity,promote the transformation and upgrading of industrial structure,and coordinate with the supply-side reform.After the literature review on financial strategy,it is found that the research on financial strategy related to supply-side reform is covering a small range,mainly concentrated in coal,steel and other industries while chlor-alkali industry is less concerned.This paper mainly adopts case study method to analyze the role of financial strategic transformation in the supply-side reform of enterprises through the change of financial indicators,with Zhongtai Chemical as the research object,hoping to fill the current research.This paper finds that the transformation of financial strategy of Zhongtai Chemical in the supply-side reform can be summarized as follows: the overall financial strategy changes from the expansion to the steady development;the investment strategy changes from the centralized investment to the diversified investment;the financing strategy pays more attention to the equity type financing,increases the financing proportion of the industrial chain;the distribution strategy changes from the irregular cash dividend distribution to the the regular distribution,which meanwhile improves the level of distribution.Based on the above results,this paper evaluates the financial strategic transformation effect of Zhongtai Chemical.From the perspective of financial effect,enterprises have increased their income and profits,thus improving their income structure.Financing channels are more balanced and financialleverage is reduced.Period costs have also been brought under control.From the perspective of non-financial effect: the enterprises have set up technical cooperation channels,which is conducive to technological innovation;the shift of investment focus helps the enterprises avoid the excessive growth of chlor-alkali production capacity,but also ensures the viability of the enterprises;the improvement of distribution strategy helps to improve the investment confidence of shareholders.There are also some hidden trouble in the financial strategy transformation of Zhongtai Chemical: neither did the enterprise pay attention to the transfer of overseas industries,nor did it make good use of the location advantages of Xinjiang;diversified investment may affect the cultivation of core products;the current financial strategy and life-cycle are not fully in line.Lastly,this paper summarizes the transformation effect from the perspective of enterprise strategy and supply-side reform goal,and concludes that the transformation of Zhongtai Chemical’s financial strategy is generally successful,which is conducive to the enterprise’s strategic transformation,and to the further completion of the supply-side reform goal.This paper hopes that other similar chlor-alkali enterprises can learn from the experience of Zhongtai Chemical’s financial strategy transformation,pay attention to the role of financial strategy,and successfully realize the enterprise transformation in the supply-side reform. |
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