Research On The Capital Structure Of GD Power Development Co.,Ltd.

Capital structure is an important research content of finance in a company. Capital structure exerts influence on corporate decisions of financing and investment. Reasonable capital structure can bring a good developing environment and reduce the financial risk for an enterprise.The power sector is the national basic industry and is related to national economy and people’s livelihood. For a long time, the asset-liability ratio of many Chinese power enterprises is high, and the unreasonable capital structure has affected the sustainable development of the power generation group. Guodian (GD) Power is a listed company with its shares held by China GD Corporation, and is the direct financing window of GD Group in the capital market and the platform for its implementation of the overall restructuring. This paper aims at the research of the capital structure of Guodian Power, and the topic has certain theoretical and practical significance.This paper studies the capital structure of GD Power based on related basic theories of the capital structure. First of all, it makes an introduction to the general conditions of GD Power; secondly, the company’s debt paying ability, operation ability, profitability and development capacity are analyzed on the basis of its financial statements, as the breakthrough point of the capital structure research of GD Power; thirdly, according to the related theories of capital structure and the financial status of GD Power, it is found that such problems as too high asset-liability ratio, unreasonable financing order, relatively single financing method, insufficient liquidity and too poor asset liquidity exist in the capital structure of GD Power; fourthly, aiming at the existing problems of its capital structure, the capital structure optimization measures including the improvement of company operation mechanism, the diversified financing methods, the enhanced intensity of bond financing, attempt of asset securitization, make full use of finance leases, reasonable control of investment scale, maintenance of reasonable liquidity and improvement of its profitability, etc. are proposed.