Introduce Several Financing Strategies

　    For capital operation, enterprises should not only attach importance to tangible assets, but also be good at valuing and capitalizing intangible assets

1、 Capitalization strategy of intangible assets

For capital operation, enterprises should not only attach importance to tangible assets, but also be good at valuing and capitalizing intangible assets. Generally speaking, the main way for famous brand advantage enterprises to use intangible assets for capitalization operation is to develop enterprise groups with famous brands as the leader and achieve the goal of market coverage by relying on the scale linkage of a number of famous brand products and enterprise groups.

2、 Franchise financing strategy

The significance of modern franchise has gone beyond this special investment mode itself, and has a significant impact on people's economic and cultural life. In fact, franchising is to add a contractual bond to the common capital bond. The franchisor and the licensee maintain their own independence and make profits together through franchise cooperation. The franchisor can obtain a larger market with less investment, and the licensee can participate in and share the investment of others at a low cost, especially the benefits brought by intangible assets.

3、 Turnkey project strategy

A turnkey project is a project in which a multinational company builds a factory or other engineering project for the host country. When the design and construction are completed and the project is initially put into operation, the "key" of the ownership and management of the factory or engineering project is completely "handed over" to the other party in accordance with the contract, and the other party will start operations.

Turnkey project is a kind of non equity investment mode developed after the transnational corporations in developed countries were blocked from investing in developing countries. In addition, when they have the cutting-edge technology required by a certain market, hope to quickly cover a large area of the market, and the available capital and other factors are insufficient, they will also consider adopting the turnkey project approach.

4、 Buyback contract strategy

International buyback contract operation is essentially a complex of technology licensing, foreign investment, entrusted processing, and compensation trade, which is still popular at present. It is also called "compensation investment amount" or "equivalent investment".

Generally speaking, this kind of economic cooperation means that transnational corporations in developed countries export whole plant equipment or patented manufacturing technology to enterprises in developing countries, and transnational corporations receive an appropriate proportion of the products produced by the enterprises after they are put into production as a means of payment. Investors can also obtain various benefits from production, such as the provision of machines, equipment, spare parts and other products.  

5、 BOT Financing Strategy

BOT is a relatively new contractual direct investment mode.

The handover in BOT is the key to distinguish BOT investment mode from other investment modes. Contractual or contractual plus equity joint venture refers to the fact that most investors recover their investment through depreciation of fixed assets and profit sharing before the expiration of the operation period. According to the contract, when the joint venture expires, all the property of the enterprise will be unconditionally owned by the host country without further liquidation. In the BOT mode of equity joint venture, the original enterprise will be conditionally transferred to the host country after the operation expires. The conditions will be determined by the parties involved in the early negotiation of the joint venture. The transfer of sole proprietorship also adopts this conditional transfer.

6、 Project financing strategy

Project financing is a kind of international medium and long-term loan issued for a specific project. The main guarantee of the project loan is the expected economic benefits of the project and the obligations of other participants to the risks of project construction, non operation, insufficient income and debt repayment, rather than the financial strength and reputation of the sponsor.

There are two main types of project financing: one is non recourse project financing, the risk of lenders is very high, generally less used; The second is the project financing with recourse, which is widely used internationally, that is, the lender not only relies on the project income as a source of repayment, but also can set a security interest in the project unit's assets, but also requires the third party who has an interest in the project completion to provide various guarantees. The liability of each guarantor for the project debt shall be limited to the amount of guarantee provided by each guarantor or the obligations undertaken according to the relevant agreements.

7、 DEG Financing Strategy

German Investment and Development Co., Ltd. is a financial institution directly under the German federal government. Its main goal is to help the private economy of developing countries in Asia, Africa and Latin America and countries in transition in Central and Eastern Europe.

DEG's investment projects must be profitable, meet the requirements of environmental protection, belong to non politically sensitive industries, and can have a positive impact on the development of the country. The investment object of DEG must have professional management without administrative intervention, and the management has at least 5 years of experience in relevant industries. Its total assets should be approximately more than DEM 10 million and less than DEM 5 billion, and it has made profits in the previous two years with retained profits, and its operating profit should be more than 5%.

8、 Apply for the World Bank IFC unsecured mortgage financing strategy

The International Finance Corporation of the World Bank operates in accordance with the international practices of commercial banks and invests in specific projects with stable economic returns. At present, the work is mainly carried out in three ways, namely, providing project financing to enterprises, helping enterprises in developing countries to raise funds in the international financial market, and providing advice and technical assistance to enterprises and governments. IFC helps to finance projects through limited recourse project financing. IFC promotes foreign investment in China through direct project cooperation with foreign investors, assistance in project design and financing.

9、 Finance lease strategy

Finance lease means that the lessor enters into a supply contract with a third party according to the request and specifications provided by the lessee, and the lessor obtains factory, capital goods or other equipment according to the terms agreed by the lessee within the scope of its interests, and the lessor enters into a lease contract with the lessee, Grant the lessee the right to use the equipment on the condition that the lessee pays the rent.

Financial leasing is a kind of financing method in the form of financing, which integrates financing and material. It has a strong financial business color, so it is regarded as a loan business related to equipment.

10、 Strategy for establishing a financial company

According to the current financial policies and regulations of our country, powerful enterprises can set up financial companies. As a kind of non bank financial institutions, enterprise group financial companies can initiate the establishment of commercial banks, relevant securities investment funds and industrial investment funds. To apply for the establishment of a finance company, the applicant must be an enterprise group with a series of specific conditions.

Finance companies can operate: absorbing local and foreign currency deposits from member companies, issuing finance company bonds upon approval, issuing local and foreign currency loans to member companies, providing buyer credit to buyers of member companies' products, etc. The People's Bank of China decides and approves the business according to the specific conditions of finance companies.  

11、 Industrial investment fund strategy

Investment fund is an important way of financing in the current market economy. It was first produced in Britain and developed in the United States. At present, the total value of the global fund market is $3 trillion, which is equivalent to the total volume of global commodity trade. Since the 1990s, the use of overseas investment funds has become a new and effective means of utilizing foreign capital in China.

There are two main circulation modes of investment funds

One is to be redeemed by the fund itself at any time; The other is bidding transfer in the secondary market.

12、 Strategies for restructuring and reforming non-performing commercial banks

Banks can be regarded as a special policy resource in China. Enterprises can seize the opportunity to hold shares, merge and acquire local commercial banks in the form of bank asset restructuring. The reorganization of bank assets can be divided into compulsory reorganization by the government and independent reorganization of banks according to the different organizational modes and reorganization modes; The measures of restructuring can be asset form replacement and cash purchase. In a word, it is to strive for holding banks, carry out shareholding restructuring of holding banks, apply for listing and open domestic and foreign branches, raise huge funds to support the development of enterprises in the industry, and form a substantial industrial bank.

13、 Industry asset restructuring strategy

Asset restructuring is to achieve low-cost and rapid expansion of the business scale of competitive enterprises in the same industry and related industries, and rapidly expand production capacity and marketing network through acquisition, merger, capital injection, joint venture, debt transfer, joint operation and other ways.

14、 Asset securitization financing strategy

Asset securitization is the latest modern financing tool other than the traditional financing method. It can solve the contradiction between the capital demand and the form of ownership faced by large and medium-sized state-owned enterprises in the management system reform on the basis of effectively protecting the country's ownership interests in state-owned enterprises and infrastructure and maintaining the stability of enterprises.

Asset securitization can transform the assets with poor liquidity into cash with high liquidity, and transform the expected future asset income into cash income currently realized, so as to improve the asset liability structure of enterprises through off balance sheet financing. At the same time, we should use capital market, bankruptcy isolation, credit enhancement and other measures to solve the problem of China's introduction of foreign capital, especially the use of upgrading technology is more suitable for China's current situation.

15、 Employee stock ownership strategy

At present, joint-stock companies in China issue new shares to employees in order to reflect their previous operating results. The number of employee shares of the company shall not exceed 10% of the amount of public shares issued, and each person shall not exceed 5000 shares; This part of the company's employee shares can be listed and circulated after half a year from the date of listing of the new shares. When the company submits the materials for applying for public issuance of shares, it must submit the number of employees approved by the local labor department and the list of shares subscribed by employees. The China Securities Regulatory Commission will check it. In the future, the company may not arrange for the number of shares of its employees when it issues shares to the public. Combining the success of ESOP employee stock ownership plan abroad, we propose several more realistic and feasible employee stock ownership plans: employee stock ownership meeting. According to the Company Law, a listed company may, in accordance with the Civil Law and other provisions, establish a social organization legal person with legal significance - the internal employee stock holding association, and take the employee stock holding association as a corporate shareholder of the company. In the employee stock ownership meeting, the internal employee stock ownership must reach a certain proportion, such as more than 20%. This kind of employee stock ownership meeting can make employee assets appreciate after the company's restructuring and issuing stocks are listed.

Employee fund plan. The employees of the company contribute in cash to form a fund, and entrust the fund assets to professional investment companies for operation. The operation of the fund can be carried out independently or in combination with the repurchase plan and employee stock ownership plan.