Research On Financial Strategy Optimization Of YR Animal Breeding Company—Based On Life Cycle Theory

Pork is the largest breed of animal meat in China.The breeding of commercial pigs already has a long history here,and it has gradually changed from the early rural freerange farming to a large-scale pig breeding enterprise,which occupies over half of the quantity of meat.In recent years,as Chinese government calls for increasing the degree of scale,standardization,and industrialization of agriculture,the growth of large-scale agriculture enterprises has accelerated,and a number of large-scale listed enterprises in livestock and poultry breeding,such as Chu Ying Agriculture,Mu Yuan,and Wen Shi.Since 2018,under the attack of "African Swine Fever" and 2019-n Co V,some breeding enterprises have closed down one after another,and the imbalance of supply and demand has caused pork prices to increase,which has also attracted the attention of a large number of investors.However,in addition to paying attention to the huge dividends of pig breeding,we cannot ignore the risks in its operation.The last leading enterprise in the pig industry,Chu Ying Agriculture is now on the verge of bankruptcy and withdraws from the stock exchange market.The reason is that the financial strategy of random investment and financing and disrespect of the life cycle theory is to blame.Like other enterprises,the results of production and operation of breeding enterprises are determined by the economic cycle,industry cycle,enterprise lifecycle,and product lifecycle.However,different from other enterprises,the managers of small and medium-sized breeding enterprises are more likely to ignore the importance of the development of a financial strategy combined with the lifecycle for the development of the enterprise due to the background and other reasons in the management process,which restricts the sustainable development of the enterprise.This article takes YR Breeding Company as the object for research,and the author tries to optimize the financial strategy of the enterprise by using lifecycle theory.Firstly,by combing the previous studies on the enterprise lifecycle theory and financial strategy,the basic research strategy of this paper is established.Secondly,it sorts out the implementation of YR Breeding Company’s current financial strategy in terms of fundraising,investment,operation,distribution,etc.,and analyzes its financial effects and deficiencies in combination with its internal and external environments.Finally,according to the actual operating status of YR Breeding Company,determine which stage of the life cycle it is in,and put forward countermeasures and suggestions for optimizing the existing financial strategy.Through the research we can find that the main financing channels of YR Breeding Company are commercial credit and short-term bank loans.They mainly invest in pig houses and commercial pig breeding.The source of investment funds mainly relies on retained profits,and partly relies on short-term bank loans and commercial credit.The operating turnover efficiency is low,almost no profit distribution.This overly conservative financial strategy has resulted in a single corporate financing structure,insufficient investment growth,inability to form a scale effect,and limited profit growth space.Further analysis of the reasons,the enterprise lacks understanding of lifecycle theory,did not seize the opportunity for corporate growth to expand rapidly,and its financial strategy is too conservative.In view of this,according to the current financial situation of the enterprise,this research establishes that the enterprise is in the mid-term growth,and proposes to combine the characteristics of the life cycle,increase long-term capital investment such as long-term debt and equity capital,improve its financing structure,use invested capital to accelerate scale expansion,and strengthen market promotion,accelerate the turnover of funds,adopt measures to optimize financial strategies such as the rational distribution of residual dividend policies,and propose safeguard measures such as strategic awareness,improving the quality of financial management personnel,and comprehensive budget management.