Financial&Operational Analysis For Gehua CATV

With the development of digital cable television, various value-added services will bring growth of new business to cable network, and CATV industry is facing good opportunities for development. In the digital age, the CATV industry and its operation will change from extended development to the development of inside-out, business model will shift from extensive to intensive business model. The industry will concern more about the effectiveness than the pace of development, and its attention would turn to the quality of programs from the numbers of the programs and content.Gehua is one of the largest cable operators in China. The company’s operations and investment direction draw attention by others of the industry due to its special geography, and established&listed earlier than other companies of the industry. Many aspects of Gehua did influence or lead the development of the domestic cable operators periodically.In recent years Gehua didn’t develop smoothly with slow sales growth and unsatisfactory profit numbers. The stock of Gehua was up and down in the capital markets, getting criticism for a number of financial indicators. This paper aims to clarify the company’s operating conditions during recent years by analyzing the financial information more closely. We also want to have relatively comprehensive and objective understanding after an integrated analysis through a variety of methods. On this basis, the paper hopes to identify the characteristics and advantages&disadvantages of Gehua’s operation, and then focus on the analysis and development of the company and operations in more prominent issue, try to find out the real cause of these concerns and make corresponding recommendations.To a certain extent, the problem of Gehua is also a microcosm of China’s cable TV industry in a particular stage of development. Through the analysis of Gehua sales growth, cost control, internal operational efficiency and other issues, we would not only have a more in-depth understanding on the overall development of the domestic cable industry operators, we could also identify the operating advantages of different operators through comparison between them. We hope to make more objective evaluation and recommendations for Gehua, meanwhile these analysis and recommendations would also have a certain significance to other domestic operators.