HSGY Electric Power Installation Company Earnings Quality Study

With the economic development of China slowdown and the supply side reform acceleration,electricity demand has encountered a bottleneck.Electricity demand once experienced a severe oversupply which lead a large number of power plant units stopped generating electricity.Looking at China's electricity demand in 2018,it can be found that overall electricity demand turned around and the structure continued optimization.In the next three years,the overall power supply situation in this country shows a comprehensive tightening trend.Such external environment for power engineering construction enterprises are both opportunities and risks.In order to seize this opportunity,and realize the survival and development of the enterprise,it is necessary for power construction enterprises to conduct a detailed and effective analysis about their own operating conditions and profit quality.In the past,China was at the peak of power infrastructure investment.The number and scale of power engineering projects were large,and the power engineering construction industry was at the market outlet.In this case,the power construction industry has been in a high-input,high-output industry model in the past few years,and achieved rich operating results.However,this kind of profitable situation has become more and more difficult in recent years.With the influence of national policies,power engineering construction enterprises have great research value in profit acquisition,cost control,profitability effects,and quality evaluation.Therefore,it is of great practical significance to conduct research and analysis of electric power engineering construction enterprises by DEA method.This study takes HSGY power engineering construction enterprises as an example,based on the 2011-2018 financial statements and project detailed accounts to construct the method,analyzing HSGY power engineering construction enterprise profit quality DEA model.Come up with the profit quality of the company,and analyze the influence of the profit quality of each project on the whole.The comparison between the evaluation results and the actual situation demonstrates the effectiveness of the evaluation model.By evaluating the profit quality data of 28 research samples,the average efficiency level is0.641,which seems not optimistic with 35.9% of input factor wasted.It implies current input factors were not effectively utilized.Look at the technical efficiency value,there is no bad condition,almost 60% of technological level are under middle rank and even 30%technical efficiency value of engineer programs are 1.It come up with large space to improve in technical efficiency value of HSGY Power Installation Company.Using theMosquiat Index to analyze the relative dynamic changes in the profit quality performance of power companies between 2014 to 2018,technical change indexes were less than 1except the year 2015-2016.And total factor productivity showed similar index to technical change index,which means other influences of index to total factor productivity are not as much as technical change,that is Mosquiat Index was influenced mainly by technical change index.Above all,this study suppose,in order to improve the profits quality of Malmquist productivity,HSGY Power Installations Company should focus on the innovation mechanism and the ability of transformation of technology into productivity.