Research On The Effect Of Financial-Industrial Integration Of M Group

With the increasingly mature development of China’s market economy,the competition in various industries is becoming increasingly fierce,and the traditional business model of large scale and low cost has long failed.Enterprises in the critical period of transformation and upgrading are using the financial-industrial integration as a tool to expand their financing channels,effectively reduce costs,promote new strategic space,enhance investment efficiency and core competitiveness,and realise the complementarity of industrial capital and financial capital.The development history of the financial-industrial integration in Chinese enterprises is relatively short,different enterprises have their own characteristics and focus on different development stages and selection paths,and the results are also uneven.This thesis takes M Group,a leading enterprise in the home appliance industry,as the research object and explores in depth the motivation,mode and effect of its implementation of industry-financing integration.Firstly,the literature at home and abroad on the concept,motivation,mode and effect of the financial-industrial integration is reviewed to lay the theoretical foundation for the next study.It then introduces the background of the development of the financial-industrial integration of M Group and the three stages it has gone through,summarises the measures and characteristics it adopted during the budding,rapid development and prosperous stages,and discusses the motivations for its development of the financial-industrial integration,which mainly include reducing financing costs,improving the efficiency of capital use,enhancing corporate profitability and improving the overall competitiveness of the enterprise.Based on a review of the development history of M Group’s financial-industrial integration,the mode of realisation of its financial-industrial integration is summarised,including participation in banks and other financial institutions,the establishment of a group financed company and the creation of a financial holding platform.On the basis of the above study,this thesis uses the publicly disclosed financial and non-financial information of Group M from 2013 to 2021 as sample data,extracts key indicators and analyses the financial and non-financial effects of the combination of production and financing.In terms of financial effects,the implementation of the financial-industrial integration has indeed effectively reduced financing costs of M Group,with the Group’s financial expenses changing from net expense million in 2013 to net inflow in 2021,and the efficient use of revitalised funds have brought the Group net financial income;However,as a functional platform,the conventionalisation of the financial business has led to a lack of subsequent profitability and growth for the Group,with the return on net assets showing a slight downward trend since 2016;in terms of non-financial effects,the implementation of the financial-industrial integration has linked the M Group with upstream and downstream enterprises,enhancing the cohesiveness of the entire industrial chain;the synergy between industry and finance has provided support for the R&D and innovation of enterprises,and the maintenance of patent licenses has continued to grow,helping to improve the market position and overall competitiveness of enterprises.Finally,some suggestions are made on how to develop the financial-industrial integration.Firstly,the actual situation of the enterprise,the current capital base,specific needs and strategic objectives should be fully considered;secondly,the financial-industrial integration should be developed around the main business,based on the real economy,using finance to promote production,and avoiding de-realisation towards deficiency;lastly,It is important to keep an eye on risks and improve the control mechanisms for financial risks.Through the analysis of the effect of the integration of industry and finance of M Group,this thesis enriches individual case studies from both financial and non-financial perspectives,with a view to bringing reference and reference to other enterprises that want to develop the integration of industry and finance.