Follow Up The Operation Link Closely And Carry Out The "Big Cost" Strategy

Fund management is the center of financial management.

In the group's financial activities, capital is a highly liquid asset that is highly valued.

Strengthening the capital management of enterprises, improving the efficiency and efficiency of capital use is the most powerful trump card to ensure the competitiveness of enterprises and ensure the long-term and steady development of enterprises.

Combined with our own situation, we put forward the idea of building a platform for "big capital".

In order to improve the group's ability to regulate and control funds and the efficiency of fund utilization, it has become the consensus of most of the group enterprises that centralized management of group funds by modern network technology and financial means.

We make full use of Wuhan Iron and steel financial company platform, centralized management of each unit's capital account, require subordinate units to open accounts in Wuhan Steel finance company, large amount of capital payment must be paid through this account, each capital flow can be controlled and rechecked.

This will help the company to centrally control the funds of each unit, give full play to the efficiency of capital concentration, control risks and meet the actual needs of various units.

Through centralized management of funds, the group company has greatly improved the efficiency of fund settlement, statistics and supervision, and enhanced the effectiveness of management control.

Co ordinate the capital budget, arrange the use of funds reasonably, and combine the annual capital budgets and monthly funds rolling budgets.

Through the dynamic cash flow budget and capital expenditure plan, we can realize the accurate scheduling of funds. Through the planned management of funds, we can ensure the effective coordination of the use of funds and the strategic planning of enterprises.

Through centralized management of funds and concentrating the funds of the subordinate units, the group company can give full play to the advantages of capital scale, raise bargaining chips with banks, reduce the rate of settlement of funds and loan interest rates; reduce the demand for external loans and corresponding interest expenses through centralization of funds, and improve the efficiency of capital utilization, speed up capital turnover and reduce the overall cost of capital by means of banks, commercial acceptance bills, letters of credit, factoring, pledge of bills, internal loan guarantees, capital raising and expansion, listing as a whole and issuing various kinds of bonds.

(three) sharing advantageous resources and reducing the overall cost of capital chain.

A typical complete supply chain usually consists of five links, namely, raw material procurement, intermediate goods, finished products, sales network and end-user, involving suppliers, manufacturers, distributors, retailers and end-users.

Once there is a shortage of funds in the supply chain, the whole supply chain will be out of balance.

In order to reduce the cost of the company, it is suggested to extend to the upstream actively, use its credit advantage to help partners reduce costs, and reduce their cost by reducing the cost of the entire supply chain.

On the one hand, we should make full use of the preferential policies of financial institutions to support small and medium enterprises, and select bank acceptance bills with smaller amount and small and medium sized enterprises, and seek for the lowest discount rate through many channels. On the one hand, the commercial acceptance bank will be able to earn lower interest rates than the bank's acceptance bill and obtain the domestic factoring business for obtaining funds in advance; on the other hand, it will sign a supplementary agreement on the basis of the original purchase contract, change the payment pattern to cash, help the supplier reduce its discount cost, and adjust the purchase price according to the amount of discount interest, so as to form a replacement of financial cost and production cost, and ultimately reduce the procurement cost and achieve a win-win situation. Mineral company's credit management has gained a high credit rating for many years, and has cultivated a large number of advantageous financial resources. For the upstream suppliers, most enterprises are small in scale, short in operation period and low in credit rating.

The progress of this process is not easy, but it is gratifying to note that it has achieved some results now.