A Study On The Earnings Space Of New Energy Enterprise In China And The Growth Mechanism

The supply and demand of energy and the impact of climate and environment have become an important factor in economic development and people’s lives. While new energy resources have great potential and environment-friendly features, which make most countries focus on the development of new energy industry. Because new energy industry in China also belongs to the emerging and infant industry, support by Government and market is one of the most direct and effective ways to promote industrial development. From the micro level, the support of new energy industry by government directly express as the support of the new energy enterprise. Meanwhile, the size of new energy enterprise earnings space not only determines the development of new energy enterprise, but also has great influence on new energy industry.First of all, the study analyzes the current development of traditional energy industry and new energy industry. It can be concluded that the substitution of new energy resources is an obvious trend in China. Secondly, according to the general process of new energy industry development, we can divide the new energy industry into four stages:Research stage, Early development stage, Expansion stage, Mature stage. Combing three influential factors, this study analyzes the characteristics and profitability of each stage. Thirdly, according to the different characteristics of different stages, as well as the common industrial policies, the government selects the appropriate policies to support new energy enterprise. Finally, based on the CSMAR database, there are six factors that affect the earnings space of new energy enterprise: Assets of the company size, R&D capability, Ownership concentration, Asserts operating capacity, Growth capability, Financial risk level of company. We can summarize these factors as Technological innovation factor and Investment&Financing factor. Based on the empirical results, we can obtain the following conclusion:earnings space of new energy enterprise has a significant positive correlation with Assets of the company size, R&D capability, Ownership concentration, Asserts operating capacity and Growth capability; However, earnings space of new energy enterprise has a significant negative correlation with Financial risk level of company. These factors have great impact on the lasting development of new energy enterprise.