Case Study On Working Capital Management Of Real Estate Enterprises Under The New Financing Polic

In a company’s funds,working capital is the part with the strongest liquidity and fastest turnover,running through every aspect of a company’s production and operation activities.Therefore,efficient working capital management has become a crucial aspect of modern financial management in enterprises,directly affecting a company’s operational status and determining whether it can maintain its core competitiveness in the industry.In August 2020,the Ministry of Housing and Urban-Rural Development and the People’s Bank of China jointly held a discussion meeting for key real estate development enterprises,clarifying the financing restrictions for real estate enterprises and proposing new financing policies.This created pressure for the management of operating capital in the real estate industry.Under these strict regulatory conditions,how to plan and manage operating capital becomes particularly important for real estate enterprises.This article provides an in-depth analysis of the characteristics of working capital for real estate development companies based on the classification of working capital channels.It also constructs a performance evaluation system for working capital management based on the channel theory,aiming to provide new solutions for real estate enterprises.Through case studies,this new performance evaluation system is applied in practice to improve the company’s control over working capital and effectively enhance the efficiency of working capital management.This article employs research methods such as literature analysis and case study analysis,based on the discourse of working capital management,financial distress theory and business-finance integration theory.Building upon the analysis of the real estate industry’s characteristics,financing policy content and policy orientation,a comprehensive evaluation system for operational capital management performance has been established from three dimensions: liquidity,profitability and risk,with Huaxia Happiness Enterprise selected as the specific research subject.Through in-depth analysis of its operational capital management in procurement channels,production channels,marketing channels,this paper aims to dissect the problems that arise in operational capital management and identify the root causes from both internal and external factors of the company,in order to propose relevant suggestions and opinions to improve the level of operational capital management.Using the aforementioned operational capital management performance evaluation system,this paper conducts a comprehensive analysis and evaluation of Huaxia Happiness Enterprise’s operational capital management level and finds problems such as business model vulnerabilities and excessive debt management,providing corresponding management suggestions from the perspectives of optimizing PPP models,adapting to new financing policies,accelerating the debt restructuring process after bond defaults,and strengthening the financial early warning system.This paper hopes to assist real estate enterprises in improving their awareness of optimizing working capital management,taking the path of long-term sustainable development,while expanding the application value of operational capital management,enhancing its industry applicability,and providing reference for future real estate enterprises to improve their operational capital management performance.