The The Y Energy Services Company A Contract Basis And Business Performance

Energy management company (EMCo) is a kind of professional special enterprise with the purpose of profits, which is based on Energy Management Contract. Its particularity lies in the fact that it not only sells energy-saving equipment, but also can provide a series of "service", namely, energy saving project, and share the energy-saving benefit with the users. Direct purchasing, financial leasing and energy management are the three main types of contracts by which energy management companies integrate the resources required by the survival and development of enterprises, and ensure enterprise-operating performance.The focus of this research is to explore the enterprise operating performance of three different contracts that comprise of purchasing, financial leasing and EMC in the Y Energy Management Company based on the case study. Firstly, under the contract arrangement of purchasing, Y Energy Management Company's equipments is unmarketable, and the enterprise-operating performance is low. Secondly, under the contract arrangement of financial leasing, because the return rate of Y company is low and its investment payoff period is long, it is often reluctant to operate financial leasing business. But under contract arrangements of EMC, both Y Energy Management Company and M Hotel share the energy-saving benefit brought by project implementation, this contract can make full use of limited resources, and ensure the survival and development of enterprises. The agreement of mutual benefit greatly improves the enterprise-operating performance. The research also finds that energy management companies with the contract forms of direct purchasing and financial leasing will lead to poor operating performance, however if they properly changes the contract arrangement's form, and adopts the contract of energy-saving benefit sharing, huge profits and long-term development can be acquired. All in all, the research has certain directive significance for energy management companies to look for right contract types and improve enterprise-operating performance.