Research On The Financial Strategy Of Gotion High-Tech Based On Life Cycle

The company has been consistent with the pace of the enterprise life cycle since its establishment.However,the traditional financial strategies have been unable to adapt well to the pace of enterprise development and changes due to the lack of foresight and comprehensiveness.At present,China is accelerating the construction of an environment-friendly society,promoting the development of renewable resources,pushing forward the transformation and upgrading of traditional manufacturing industries,and new energy power battery companies are experiencing leapfrog development as an important part of it.With the growth of the new energy industry,the power battery market is facing the impact of the entry of many foreign leading enterprises,the pressure of battery technology research and development,the decline of product profitability and other problems.How to use the life cycle theory to guide the enterprise layout financial strategy has become an important issue to be solved by the management.Based on the above background,this paper selects Go Tion High-Tech,a power battery enterprise,as the case object,judges the company’s current life cycle stage and its financial characteristics through the system analysis method,summarizes the current management status of the company’s financing strategy,investment strategy,operation strategy and income distribution strategy from 2016 to 2020,and constructs the financial strategy matrix of Go Tion High-Tech,Starting from many aspects of value creation and business risks,the following problems are found: on the one hand,from the perspective of life cycle,Go Tion High-Tech is currently in the growth stage.Although the company has gradually formed a brand effect and its value creation ability is positive,due to the decline of government subsidies and the price war in the power battery market,the profitability of the company has decreased,the turnover speed of products has slowed down,and there is a shortage of development funds.On the other hand,from the perspective of financial strategy,the company still has some problems,such as unreasonable financing structure,difficult investment project management,low efficiency of working capital and unscientific dividend distribution policy.According to the above research,By using the life cycle theory and financial strategy theory,this paper puts forward the following financial strategy improvement measures and safeguard measures: In terms of fundraising,optimize the financing structure,expand financing channels and establish a debt repayment guarantee system;In terms of investment,pay attention to the feasibility of the project,integrate the power battery industry chain and strengthen the strategic arrangement of diversified investment;In terms of operation management,control the scale of expenses,save the cost of working capital and improve the efficiency of capital use;In terms of income distribution,allot more shares and pay less cash dividends,and improve the incentive and distribution mechanism for employees;In terms of safeguards,upgrade the financial information system,strengthen the level of enterprise risk management,and promote the matching of financial strategy and enterprise strategy.It can be seen that taking the enterprise life cycle as the starting point and starting from the overall perspective,formulating the financial strategy scheme matching the cycle stage can not only improve the shortcomings of traditional financial strategy management,but also more carefully distinguish the financial strategies of different life cycles,so as to make the guidance of financial strategy to enterprise production and operation more flexible and targeted.