Research On Capital Structure Optimization Of Gemdale Real Estate Group

The real estate industry plays a very important role in China’s economic development.The real estate industry is capital-intensive,relatively speaking,its capital demand is much more than other industries,it could bankrupt the business.Secondly,according to the relevant theory to judge its financial situation,Gemdale Corporration is one of the top 20 enterprises in China’s real estate industry,in the current real estate policy in the form of continued urgency,the group's development prospects are not so optimistic,debt levels have soared over the past three years,while financial and credit policies are making it increasingly difficult for the group to access funding and corporate capital structures are in need of improvement.The case study selected for this article is the famous Chinese real estate joint-stock company,Gemdale Corporration.First,the capital structure of Gemdale Corporration has been studied and the relevant literature about the group has been found and compiled,do a good job of theoretical analysis.Second,according to the relevant theory of its financial situation to make a judgment.Then through the company’ annual reports,the group’s corporate information carefully collected summary summary,analysis of the financial situation,the overall situation of the enterprise for a general familiarity.The capital structure analysis was based on data from companies’ 2016-2021 annual reports.On this basis,combined with the actual situation of the enterprise optimization recommendations.It is found that enterprises generally have the problem of excessive debt ratio,unreasonable debt structure,single financing channels,lack of internal capital and so on.Secondly,it analyzes the causes of the external environment and the internal environment of the enterprise according to the problems found,it is concluded that the problems of enterprise capital structure are mainly caused by macroeconomic situation,monetary policy,land policy,real estate competition,corporate strategy,corporate scale,and the large amount of payable and prepaid funds,the long-term borrowing cost is high,the enterprise own management situation is not ideal,the internal financing plan lacks,the profit ability is not stable and so on.By summing up and analyzing the above-mentioned problems and their causes,this paper puts forward the methods of optimizing the land investment decision-making to deal with the problems existing in the capital structure of the group,perfecting the inventory management and actively seeking long-term loans,pay attention to the management of accounts receivable recovery,strengthen the long-term effective cooperation with financial institutions,improve the credit standing of the company,enhance the profitability,and select appropriate dividend payment policies,to optimize the reasonable capital structure of Gemdale Corporration to provide a reference.