Reasons for New Working Capital Loans of State-owned Platform Companies

1. Business development needs: With the continuous expansion of the company's business and the growth of sales and income, the company may need more working capital to support its daily operations, such as purchasing raw materials and paying wages.

2. Capital turnover: the company may encounter capital turnover problems in the course of operation, such as slow payment of accounts receivable and increase of prepayments. At this time, the new working capital loan can help the company tide over the temporary difficulties.

3. Optimize the capital structure: By increasing the working capital loan, the company can adjust the capital structure, reduce the debt ratio, improve the solvency, and make the company more stable.

4. Coping with industry competition: In the fierce market competition, the company needs to continuously optimize production and improve efficiency, which requires more investment. New working capital loans can help enterprises improve their competitiveness and seize market share.

5. Policy support: The government may introduce relevant policies to encourage enterprises to increase working capital loans and promote economic development. As state-owned enterprises, state-owned platform companies need to actively respond to policy guidance and increase working capital loans.