Dear Mr. Li,
Given the recent objective of Geeli becoming the world’s biggest air-conditioner manufacture within the next five years for which Geeli needs to raise $400 million (RMB 3.35 billion), I have looked into these areas based on the information available:
1. Current Company Position
2. Current Industry Position
3. Financing options
4. Recommendations
Current Company Position
Geeli has gained substantial market share of this industry under your leadership over the last decade. With Geeli’s present book assets approaching $400 million Geeli has enjoyed a steady growth in it’s revenue and stable cash flows. Additionally, the Geeli brand is valued at $350 million by the State Finance Bureau of China. Given this brand recognition
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Even though private placements are very new in China and only being legislated in 2005, it is expected to double by 2008.
Advantages Set Backs
- Easy and less time consuming
- No Strict Compliance as listing
- Less number of share holders
- Allows company to be in a private status
- High level of secrecy
- Option of choosing investors who are aligned with the company - Lack of suitable investors
- Opportunistic behavior by selling to interested party in large profits
- Lack of funds
- Little recognition than other public offerings
Debt Options
When China joined the WTO in 2001, its banking sector was in a very weak state, troubled by a serious non-performing loans (NPLs) problem. Thus, numerous measures like a large sum of government funds (roughly 20% of China’s GDP in 2004) have been provided to resolve the NPLs problems. Since 2003, China Banking Regulatory Commission (CBRC) was established to strengthen bank regulation and this has improved performance due to foreign competitors, lower transaction cost & easy administrative procedure for obtaining the loan with added tax saving. While Geeli has limited debt on its balance sheet there are still drawbacks with these options as emphasized below:
Domestic Banks – Drawbacks
• Government Policy dictated lending practice and most loan went to state
These effective strategies helped Hong Kong overcome the financial crisis. All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of China's economy has been brought into focus; China's neighboring countries have begun to recognize the influence of the Renminbi.
The following paper is about a company that is at the top level of their industry in selling their products and services. The background of this company describes about what kind of company this is and the types of products and services it provides to their customers. This section also includes the recent performance of this company and the varying aspects of what their target customers and whose is the competition.
Jerrie, I'm trying to be placed on LTC Burke calendar IOT to provide him with an overview of ASG-OCS cell unique roles and responsibilities ISO ARCENT, as a tenant under the contractual management of ASG (i.e. ASG-KU serves as the garrison headquarters, providing direct support for Camp Arifjan, Camp Buehring, and Camp Patriot).
In the case study of Gee Wiz, “Wanda David, a licensed CPA, works for Gee, LLC, a professional accountancy corporation with offices in Wisconsin and Illinois, in the audit department and she also has some small business clients that she provides tax services to in her spare time generally on weekends. Her employer does not know that she does this. Wanda never thought about a conflict of interests because the firm does no tax work. One of Wanda’s small business clients, Wiz Inc., was also an audit client of Gee and had fallen more than 90 days past due on paying bills. In her position with Gee, Wanda was assigned to the audit of Wiz and is responsible for preparing and estimating the Allowance for Doubtful Accounts. During the audit of Wiz’s financial statements during the week ending March 1, 2013, her boss asks her for justification for not including Wiz Inc. in the 90+ day aging report. It seems there are some audit-related questions about the collectible of the Wiz account. Wanda came up with an explanation for not including the Wiz account in the estimated allowance and her boss was satisfied. Within a week of this request, Wanda is given a nice promotion and raise, but she has to transfer to the office of Gee in Chicago for the new job. Wanda accepts the promotion, leaves immediately, and decides to quit doing accounting on the side. In moving, Wanda does not complete the corporate tax return for Wiz on Form 1120, which should be filed with the IRS by March 15. She also
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8. SkyWest, Inc. must seek global markets to enter that allow joint ventures and potential for growth to strengthen the company’s competitive position. I would recommend the management stay on top of technological advances in aircraft and purchase fuel efficient jets to lower fuel costs. Also, a plan to consolidate ASA offices with the offices of SkyWest would cut down operating costs.
Thirdly, Beaven and his family abstained from getting inside any form of transportation that release carbon into the environment which allowed him to enjoy the company of his family. Vandana Shiva’s self sustaining villages allows people to simply get up in the morning and go, since all of the resources they need such as food, laundry, and everything else will be found locally. There will be no need to commute from point A to point B for everyday living. By reducing the amount of time one spends in a car, the happiness of that person increases since they are dedicating more of their time to the people they care about. Particularly, Beaven states that “...Americans spend the equivalent of nearly five work-months a year either driving our cars
products, have attracted a lot of customers throughout the world. The company has a huge
China’s accession to the WTO in 2001 has helped shape its economy to becoming a more predictable environment for trade and foreign investment. Corporate governance and frameworks for business operations and interactions have improved, providing a much more transparent environment. (Deckers, 2004)
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