Research On Financial Transformation Of Panjiang Coal And Electricity Group Corporation

With the development of science and technology as well as the rapid change of market,Chinese economy has begun to adjust its structure,transform the operation direction and focus on innovation.In the face of the new economical situation,the central government has launched some comprehensive polices to encourage the reform.Since the socialism with Chinese characteristics has entered a new era,the requirements of Chinese enterprises especially for those state-owned enterprises have changed which require them to be collective,specialized,and modern.For those state-owned enterprises,there are significant differences in many aspects such as the operation mode,the management mode and the competitive advantage compared with other enterprises.To ensure the sustainability of these state-owned enterprises,it is time to realize the importance of the financial transformation which would support the realization of the strategic transformation goal of those enterprises.As a typical state-owned enterprise which has been established for nearly 60 years,it is important for Guizhou Panjiang Coal and Electricity Refco Group Ltd to improve its level on financial management and do the financial transformation timely.After reading the relevant research literature and theories,this paper first analyses the meaning of financial transformation.Using the method of literature retrieval,it is found that many large enterprises have successfully implemented financial transformation.With the development of information technology and the guidance of national policies,the construction of Financial Sharing Service Center has become a trend in the current society.Financial sharing has become an important tool to promote the financial digital transformation of large enterprises.At the same time,the combination of business and finance also becomes the new direction of enterprise management.Therefore,the concept of industry finance integration based on the construction of Financial Sharing Service Center has attracted more and more attention.This paper selects Guizhou Panjiang Coal and Electricity Refco Group Ltd as the main research object,and analyzes the limitations and disadvantages of the business accounting of those traditional state-owned enterprises,and points out the necessity of the financial transformation from the trend and sustainability of financial management.The main line is "in where,go where and how to go".It is believed that financial sharing service could provide a strong support for the combination of business work and financial work,and provide a lot of useful data and information for business decision-making.At the same time,the business work and the business process could be adjusted and optimized timely according to the feedback,which enhances the core competitiveness and sustainability of enterprises.Financial sharing could be treated as the technical platform which could reinforce the foundation of enterprise financial management,and the integration of industry and finance could be treated as an effective way to perform the function of financial management.The close cooperation of the financial sharing and the integration of industry and finance could create a unique advantage which could bring more benefits.The integration of industry and finance by the construction of Financial Sharing Service Center has become the main direction of many large enterprises when they conduct the financial transformation in the future.This paper also points out different challenges that those enterprises could face in the process of financial transformation and they should implement some necessary measures to safeguard the process.The author finds out the methods of financial transformation that are mature and could be accepted easily by most enterprises by analyzing the relevant theoretical research about financial sharing service and the integration of industry and business and concluding the experience of those companies that have been reformed successfully.The author then uses the above findings to analyze Guizhou Panjiang Coal and Electricity Refco Group Ltd to find the gap and optimize the financial transformation mode of this company based on its current situation.This paper ensures the process of financial transformation of Guizhou Panjiang Coal and Electricity Refco Group Ltd could be implemented smoothly and successfully,and the needs of enterprise strategic reform could be met.This paper also contributes on providing ideas about the financial transformation for these similar state-owned enterprises in China.