Financial Performance Evaluation Of China Coal Energy Company Under Supply-Side Structural Reform

Since 2012,with the new normal of China's economic,China's coal demand growth has slowed down significantly,the industry economy has faced downward pressures,the coal market is sluggish,and coal enterprises have been in financial difficulties.Supply-side structural reform is listed as a major strategy to guide China's economic development.Its five major tasks include "capacity reduction,de-stocking,deleveraging,cost reduction and strengthening areas of weakness".The coal industry reform is the priority in these tasks,and state-owned enterprises with special function orientation,in the forefront of the reform,are the key to the success of the reform.China Coal Energy is a large state-owned energy enterprise integrating coal,coal chemical industry,coal-mining equipment and other related businesses.It is the second largest coal enterprise in China.China Coal Energy has prominent resource advantages and scale advantages of its main industry.Its coal reserves rank the fifth in the world.Its core competitive advantages include industry-leading technology,advantages of the scale effect and advantages of the whole coal industry chain.At the same time,enterprises are still facing risks of macroeconomic fluctuations,safety in production and environmental protection.Based on the analysis of coal industry background and policy background of supply-side reform,combined with the strategies about supply-side reform policy of China Coal Energy,this paper analyses the management situation and financial situation of enterprises before and after supply-side reform by means of financial performance evaluation.This paper summarizes the experience and lessons of China Coal Energy,and puts forward effective suggestions.Financial performance can objectively evaluate the contribution of an enterprise's current strategy to its economic performance,and can provide important decision-making references for the government,enterprises and investors.At the same time,it can also help enterprises make strategic adjustments according to experience and relevant policies,to improve the competitiveness of enterprises and promote further transformation and upgrading of enterprises.This paper adopts literature research method and case analysis method for discussion.Through literature research,by referring to domestic and foreign studies on supply-side reform and financial performance analysis,it is believed that supply-side reform has a far-reaching impact on the coal industry,and the supply-demand structure has been promoted the development of the industry.At the same time,it has a guiding role in the transformation and upgrading of coal enterprises,and the capacity reduction is the top priority of coal enterprise reform.It is inevitable for coal enterprises to transform and upgrade.In addition,financial index analysis,Du Pont System and EVA index analysis are commonly used and effective methods in current financial performance analysis.In the case study,based on the supply-side reform strategies and financial data of China Coal Energy from 2010 to 2017,financial index,Du Pont System and EVA index is adopted for financial performance analysis.Through analysis,it is believed that the supply-side reform policy has a positive impact on the financial performance of China Coal Energy.Before 2015,the management situation and profit level of China Coal Energy declined year by year.Since the implementation of the supply-side reform,China coal energy has turned its losses into profits,completed the task of cutting production capacity and costs,and improved its profitability.However,the deleveraging work and strengthening weak links of enterprises is still insufficient,the shortcomings of business strategies and capital structure are prominent,and the ability to resist risks is insufficient.Based on the above problems,this paper puts forward some suggestions for the future development of the company.It is believed that China Coal Energy should not only adhere to innovation-driven and accelerate strategic upgrading,but also pay attention to the optimization of capital structure,risk prevention and policy opportunities.