Research On Diversification Performance Of Central Power Generation Enterprises

Currently, the power generation central enterprises represented by the central five power generation groups are gradually turned from single power producers to comprehensive energy groups.in the new economics environment, the problems that what the overall benefits and risks of the diversified Power generation central enterprises were, how to deal with the relation of major industry development and diversified industries development, and how to formulate development direction and path of the next step, are all urgent need deeply study and exploration.In this paper, the models of diversified business of power central enterprises were studied to divide into the industrial chain vertical integration modes, the energy base intensive modes, production and finance collaborative model. The diverse development levels and characteristics of China’s power central enterprises were reviewed. The main factors driving power central companies implement diversification, as well as the main risks exist in the current diversification were analyzed.The key financial data of the five central power generation groups in2008,2009and2010were selected to study. With this sample, the financial comprehensive performance of coal industry, coal chemical industry, transportation industry, metallurgy and electrical equipment manufacturing, and financial industry the top-five diversity practices were comprehensive analyzed. In the performance analysis methods, the first step was to compare the main industry and diversified industries in structure of asset size, total revenues and profits. At the same time, the financial structure of diversified development was evaluated. Then diversified business financial performance indicators were compared with the main industry and the industry average value to evaluate the comprehensive diversified performance, to analyze the effection to main industry development, and to supply a preferred order to develop five power generation groups diversified development.In this paper, a multiple linear regression model based on the degree of diversification (DT) and economic value added (EVA) was established to analyze diversification effect ion to company’s overall performance. By the comprehensive analysis, developing diversification was the most effective and direct rout to improve the overall performance of five power generation groups.The diversified business unit financial performance analysis and model study in this paper is significant to refine central power enterprises diversification and energy, as well as to complete state-owned assets value increasing, and improve the competitiveness.