Research On The Capital Structure Optimization Of Cosco Shipping Bulk Under The Background Of Deleveraging

Due to the characteristics of the industry and the long-term loss after the financial crisis in 2008,the shipping enterprises generally have a high asset liability ratio.Although the shipping market began to recover gradually since 2017,and shipping companies also turned losses into profits,the continuous capacity reduction of upstream customers caused a sharp decline in international shipping demand,resulting in a reduction in the operating cash flow available for debt repayment.Under the deleveraging policy,the debt repayment of enterprises has changed from "borrowing for new" to "returning for old and borrowing for new",which increases the difficulty of new debt financing of shipping enterprises and increases the risk of debt default.In this context,COSCO Shipping bulk has brought high uncertainty to the normal operation and future development of the enterprise due to the huge annual debt service amount and continuous investment expenditure,debt service pressure and new financing,so it is urgent to optimize the capital structure.This paper selects COSCO Shipping bulk as the research object and has a vertical comparison and horizontal comparison with excellent enterprises in the same industry,from the company’s financial statements in the past five years,through the current situation of capital structure,debt financing,equity financing,financing channels and the matching degree of enterprise’s capital and asset structure.Based on the analysis of the current situation,it is found that the company has five problems: high asset liability ratio,working capital shortage,long-term solvency shortage,single ownership structure and relatively single financing mode.This paper will further analyze the causes of the problems.Secondly,to satisfy the SASAC’s requirement to lower the asset liability ratio in the short term and maximize the enterprise value in the long term,this paper concludes that the optimal range of capital structure of COSCO Shipping bulk is not higher than 69% by integrating the industry average asset liability ratio,applying the optimal capital structure model and benchmarking the excellent shipping companies in the industry.Finally,combined with the actual situation of the company,the paper puts forward the specific measures to optimize the capital structure from the optimization of equity structure,creditor’s rights structure and financing structure.This paper analyzes the problems existing in the capital structure of COSCO Shipping bulk and gives solutions,which will not only help the company to optimize its capital structure on deleveraging,but also have important reference for the realization of high-quality development of the enterprise.Considering the common problems existing in the capital structure of shipping enterprises,the conclusions of this paper can be used as reference in the practice of optimizing the capital structure of domestic shipping enterprises.