Research On Evaluation For Financial Performance Of Green Energy Listed Companies

In recent years,as an emerging sector of strategic importance,green energy industry has caught the attention of countries all around the world.Though the growth speed of Chinese green energy industry is on the top the world,the technology of which is immature on the whole.Therefore,lots of enterprises in the sectors of green energy are confronting their development bottlenecks.Taking a listed company of green energy as the research subject,this paper is devoted to study its current financial performance so as to promote the development of this company and even the whole industry.The research subject of this paper is SUNGROW Corporation Limited.Research methods employed in this paper are both vertical and horizontal comparison.According to the analysis of its 5 years' financial data collected from 2012 to 2016,this paper firstly aims to establish a financial performance indicator system which focuses on solvency,profitability,operation ability,growth ability and scientific research ability.Then,making a vertical comparison of its 5 years' financial data.Next,selecting 32 A-share enterprises listed by Shenzhen or Shanhai Stock Exchange,the primary businesses of which are also photovoltaic industry and wind power.Finally,by collecting those enterprises' financial data in 2016,this paper adopted the factor analysis method to make a horizontal comparison between SUNGROW and those 32 enterprises.The research reveals that the major problems of SUNGROW are poor profitability,flat operation ability,unreasonable capital structure,limited ability of funds management,failures of using financial leverage to reduce cost of capital and the influence of macro economy and policies.Therefore,it's necessary for SUNGROW to adjust and develop itself,detailed measures are listed as followings to tackle problems listed above:expanding scale of the enterprise and promoting profitability;selecting diversified development channels and exploiting overseas market;ensuring reasonable capital structure;making strict management system and credit sale management system;developing independent innovative capacity and realizing product differentiation.