AB Power Group Company

AB Power Group Company has adopted a series of policies on capital management since 1994 aiming to avoid financial risks and improve the benefits of capital. It has become the fundamental management ideology of the company that, financial management be the core of the enterprise management while capital management be the core of the financial management. The company has successfully resisted the impacts of financial storms in the end of 1990s, and has been keeping good financial conditions throughout the company's developing course. The company now faces a new challenge when China entering WTO and market competition system being introduced in the electricity energy industry. The company must establish market and competition conception among its management course, and implement modern enterprise management measures. In the field of finance, the capital management should focus on capital benefit management. Investment management should be the leading role of the whole capital management while much more attention should be paid to economic feasibility of the investments. An overall budget system should bo implemented in order to effectively control the company's cash flows and financial risks.