Research On Profitability Management Of Parent Company Of BF Company

With the gradual deepening of China’s economic reform, State-owned enterprise group has developed into the backbone of the social and economic. But in the process of expanding various problems come out, among which the particularly prominent is the problem of low net profit attributable to parent company. The parent company has several problems on the one hand, such as the annual loss, the shortage of funds, and the restricted development; on the other hand the subsidiary company has the following problems, such as big profit, heavy tax burden, and limited ability to feed the parent company. So here comes the imminent problems, which is whether the parent company can take the initiative to adapt to the new economic normality, avoid "centralization without excellence, centralization without advantage" to distribute the benefits reasonably, orderly and balanced and to raise the overall level of net profit attributable to parent company. This paper describes the theoretical models firstly, and analyze, compare and summarize the three years financial data comprehensively in the form of empirical research with the state-owned power company to North Energy Group as an example. The paper gives a detailed analysis of the reasons and upgrading necessity for the company’s long-term low net profit attributable to parent Northern company, and put forward concrete measures for the work with the full application of analysis, induction, classification, quantitative analysis, evaluation models and other methods, and with the thought in the economics, finance, accounting, and statistics, with a combination of charts. This paper aims to expound the importance of lifting net profit attributable to the parent company, to dissect the constituent elements of net profit attributable to the parent company in-depth, and analyze the main reason for its being low, at last the paper proposes the countermeasures and suggestions in order to achieve the target of the net profit attributable to parent effectively, and to enrich and promote theoretical research of financial management and control for the state-owned energy group, and to better serve the management practices and sustainable development of the state-owned enterprise group.