Research On Profit Model Of China Shipbuilding Industry Company Limited

The research on the theory and practice of profit model is of great significance to the development of the enterprise and the realization of its value maximization.As one of the important research objects in the economic field,the profit model embodies a systematic approach and structure of enterprise development,that is to say,through its own resources and other elements of its effective allocation and integration,and based on corporate strategic targets to achieve profitability and value creation.In a sense,a good profit model could play a key role in developing in the market long-term and maintaining a strong competitiveness for enterprises.As the China's largest shipbuilding public company in the scale of business assets,China Shipbuilding Industry Company Limited(referred to as “CSICL”,Stock code: 601989)reflects a very strong overall strength in the ship equipment manufacturing,marine engineering and other business areas.CSICL is the parent company of China Shipbuilding Industry Corporation's(referred to as “CSIC”)which has pushed into a public company,and into the A-share capital market operation of a platform.Based on the platform CSICL has developed five business sections and has been maintaining the leading position in the technical innovation,business operations and capital operation in the industry area.In the recent years,faced with the situation that the global shipping market downturn and its own in the transformation and upgrading period,the development of CSICL has been affected,but the overall performance in the industry has still been considered robust.All of these above have led us to research and reflect on CSICL's profit model.This dissertation takes the profit model of CSICL as the research object.Firstly,the research background of profit model and the current development of CSICL have been discussed.Through studying the relevant theories at home and abroad,it is found that there is no more comprehensive study of CSICL's profit model,therefore,this dissertation has a certain theoretical and practical significance for the study of CSICL's profit model.Then,the basic theory of profit model definition,characteristics and elements are analyzed,and to build the basic framework of profit model.And then from the angle of the other relevant theories(such as five forces model,strategy of diversification,etc.)that are closely related to profit model,rich and expand the connotation and substance of the theory of profit model,and emphasize the necessity for financial capacity evaluation on the profit model.Then,combined with CSICL's specific circumstances,analyze and research the basic profile and the profit model framework of CSICL,evaluate the CSICL's profit model through methods of relationship between financial ratios and Principal Component Analysis,both evaluation methods have their own advantages,but the Principal Component Analysis is an empirical research,whose research results usually are more rigorous and objective and could more truly reflect the current situation of CSICL's profit model.Furthermore,interpret the reasons for the current situation of CSICL's profit model from external and internal aspects,point out the existing problems,and put forward some strategies and reasonable suggestions on the problems existing in CSICL's profit model.Finally,summarize and outlook the research on CSICL's profit model.