Research On Financial Analysis Of Ganfeng Lithium Based On Harvard Analytical Framework

With the increasing emphasis on new energy,new medicine and new material technology in the global market,the demand for new energy vehicles is also increasing,the use of lithium products is also expanding,and the deep processing industry of lithium products is also developing.From a long-term perspective,the global lithium industry will continue to develop rapidly in the next few years.Ganfeng Lithium is the largest lithium metal supply enterprise and the third largest lithium compound enterprise of the world.As a leading enterprise in the whole industrial chain layout of the lithium battery industry,it has achieved rapid expansion after more than ten years.At the same time,it faces challenges such as large cyclical impact of policies and industries and problems in operation and management.Using the Harvard analysis framework to scientifically and comprehensively analyze the business activities of the company,find problems behind the financial data and non-financial data of the company,and propose relevant optimization suggestions for the corporate future development.This thesis based on the Harvard analytical framework comprehensively analyzes the operation of Ganfeng Lithium in the five years from 2017 to 2021 from four aspects:strategy,accounting,finance and prospects.Strategic analysis:According to the situation of the enterprise,the internal and external environment of Ganfeng Lithium and the lithium industry was analyzed through the PEST model and SWOT model,and it was found that the company industry was cyclical,but the capitalization progress of the company R&D investment was slow and there were problems of insufficient internal management.Accounting analysis:the company accounting information is reliable and true,but the company inventory management efficiency is low,and there is a large risk of consolidation in the construction project.Financial analysis:the company cash flow analysis through the financial strategy matrix,financial analysis through DuPont analysis method,and financial risk analysis through the innovative Fscore model,comprehensively understand that the company needs to strengthen the management of cash flow and accounts receivable.Prospect analysis:using PEG valuation model for financial forecasting,combined with the analysis of the previous three parts,it is proposed that the company future development may face large political risks,technical research difficulties and insufficient equity allocation policies,and there are still large market demand for lithium products in the future,the future policy continues to be favorable,the cyclical trend of the industry has weakened,and the company industry leading position is stable.Finally,based on the analysis results of the four dimensions of Harvard analysis framework,relevant optimization suggestions are put forward for the company development.In terms of strategy,the company should continuously improve its R&D capabilities and strengthen internal management.In terms of accounting and finance,the company should standardize the management of engineering projects and improve the efficiency of asset utilization.In terms of prospects,the company should actively prevent political risks,and at the same time appropriately adjust the product business and dividend distribution policies.