A Comparative Study On The Financial Performance,Financial Policy And Financial Strategy Between HAL And SEPTWOLVES

In recent years,China’s national economy and residents’ income have continued to grow,and the scale of clothing industry has steadily increased.At the same time,international luxury brands such as LV and GUCCI,light luxury brands such as CK and GUESS,and fast fashion brands such as ZARA and UNIQLO have also rapidly penetrated into domestic fourth-and fifth-tier cities through shopping-mall channels.This competition pattern is both opportunities and challenges for domestic garment enterprises.HAL and SEPTWOLVES are both leaders in China’s men’s clothing industry.Their development modes are similar,but there is also a certain gap.This paper intends to use the method of financial strategy analysis to compare and study the financial performance,financial policy and financial strategy of the two companies through the comparative analysis of their financial data from 2015to 2019.Through comparative analysis,the main conclusions of this study are as follows:1.HAL was a value-creating and capital-surplus enterprise;SEPTWOLVES was valuedamaging enterprise,of which 2015 and 2016 were capital-shortage enterprise and 2017,2018 and 2019 were capital-surplus enterprise.2.The efficiency of HAL’s debt policy,WCR policy,DPS policy and investment policy were better than that of SEPTWOLVES.3.HAL has done better than SEPTWOLVES in terms of Revenue growth,NCF growth and EAT growth.4.HAL was stronger than SEPTWOLVES in terms of profit-making ability,cash-creating ability,self-growth ability,risk control ability and value-creating ability.According to the main conclusions of the study,the following suggestions are given t o HAL:1.In dividend policy,it is suggested to reduce the proportion of cash dividends and increase the proportion of cash holdings.2.In investment policy,it is suggested to further deepen the multi brand strategy and internationalization strategy.3.In inventory managem ent,it is suggested to improve the efficiency of inventory management.the following sugg estions are given to SEPTWOLVES:1.In terms of value creation ability,it is suggested to carry out strategic change and increase revenue and reduce expenditure.2.In terms of debt policy,it is suggested to implement OPM strategy more strength.3.In terms of operation and management,it is suggested to implement benchmark management in an all-round way.