Harvard Framework Financial Analysis Of Shanxi Meiye

Shanxi Coal Industry Co.,Ltd was founded in 2008 and listed on the Shanghai Stock Exchange in Jan.2014,ranking in the forefront of domestic coal industry based on the market value.It's mainly engaged in coal mining,coal washing,coal transportation,coal sales and production services,and its coal products are mainly used in the industries of power,chemical and metallurgical.Since 2012,the profit of Shanxi Meiye had experienced continuing deterioration owing to the intensified imbalance between supply and demand in the domestic coal market as well as the falling coal price,and in 2015,the company suffered severe losses.In 2016,as the economic situation improved and the contradiction between supply and demand got eased,the coal price rebounded.On this occasion,Shanxi Meiye spent half a year showing a turn from loss to profit and became a leading company in the industry.Then people became wondering whether the actual operating conditions and financial conditions of Shanxi Meiye is as good as its presentation in financial statement and whether it can maintain the dominant position.As one of the comprehensive financial analysis systems,Harvard Analytical Framework has gained wide acceptance.It aims at analyzing and assessing the company comprehensively from the aspects of strategies,accounting,finance and prospects,so the assessment made is more close to the actual situation.It makes up for the deficiency of traditional financial analysis effectively as quantitative and qualitative analyses are both adopted and the financial analysis is conducted on the basis of an understanding of corporate strategies.Therefore,by drawing on relevant research results at home and abroad,this paper takes Shanxi Meiye,a representative enterprise in the coal industry,as a case study object and uses Harvard Analytical Framework to conduct a comprehensive analysis of its operation and financial status aiming to find answers to questions raised above.At first,this paper makes a brief introduction of Shanxi Meiye,and then,taking strategic analysis as the starting point,the risks and opportunities in the coal industry as well as advantages and disadvantages of Shanxi Meiye are clarified.After evaluating the disclosure quality of financial statements through accounting analysis,it analyzes the financial data.Finally,it predicts risks and development prospects of Shanxi Meiye.This paper aims at putting forward suggestions for the operation and development of Shanxi Meiye and providing a reference for other companies in coal industry.