The Financing Mode And Selection Analysis Of A Small And Medium-sized Hydropower Enterprises In China

China is one of the countries which are considerably rich in the water resources and more and more enterprises are engaged in the development of the water resources. After the hydropower station’s construction is completed and is put into formal operation, the enterprise will be faced with both attraction and challenge. On one hand, the benefit of the hydropower industry is very high. Once the hydropower station’s construction is completed, its running cost will be very low, but the stable and large amount of inflow of fund will be warranted which can make the enterprise obtain very healthy earning capacity and development capacity. On the other hand, the acquisition of development rights at the earlier stage is very difficult, the investment and financing scale is large, the construction period is long, the investment payback period is long, the financing difficulty is high and it needs the support of the large amount of external and internal fund. Therefore, due to the hydropower industry’s dual character in respect of the fund input and output, it is awe-inspiring for many private capitals, especially for the small-sized ones. They are willing to enter into the hydropower industry, but they have to stop because of many disadvantageous conditions such as their limited capitals and the difficult financing and so on.With the macropolicy of China’s western development, the southwestern region has been dedicating to becoming the important energy base of China, implementing the national general goal of "Transmit the Electricity from the Western Areas to East China" and rapidly developing the plentiful water resources. At the present stage, the stage-owned capitals account for most of the resources of the hydropower development in the southwestern region of China. Due to the plentiful hydropower resources to be developed, the stage-owned capitals prefer the large rivers’resources and are not taking into account the numerous small river basins’resources, which give the private capitals the opportunity to enter into the small and medium-sized hydropower industry. If the private capitals are planning to enter into the small and medium-sized hydropower industry, the financing will become one of the most important factors of the financing management for the small and medium-sized hydropower industry. The difficult financing always is the critical restrictive factor relating to development of a small and medium-sized hydropower enterprises due to different kinds of factor. Therefore, selecting the proper financing management modes can make the small and medium-sized hydropower enterprises select the financing modes which suit themselves according to their own conditions so that the solution for resolving the problem of difficult financing through their limited capitals can be found.This thesis investigates and discusses on basis of the principle of integration of theory with practice and according to the thinking of put forwarding the problem, analyzing the problem and resolving the problem, and further investigates and discusses as per the selection of financing modes and the analysis theory of a small and medium-sized hydropower enterprises in China. Combining the actual case of BN hydropower enterprise’s financing management mode, this thesis describes how a small and medium-sized hydropower enterprises in China build the investment and financing management platform of group operation model by means of their limited resources and investigates the thinking of company’s strategies and tactics can promote the company’s financing so as to resolve the financing demand problem of the small and medium-sized hydropower enterprises.This thesis includes six chapters and the main details of each chapter are as follows:Chapter One:Introduction. It mainly introduces the research background and significance, the research thinking and framework of this thesis and it also briefly introduces the research methods of this thesis.Chapter Two:Research on The Financing of in China and overseas.It mainly introduces the theoretical and practical experience relating to the financing of enterprises.Chapter Three:Explanation of Related Financing Theories. At the beginning, it introduces the capital structure theory, investment portfolio theory, pecking order theory and the MM theory relating to the financing, and then it describes the classification of the enterprise’s financing from different aspects such as the direct financing, indirect financing, internal financing and external financing and so on.Chapter Four:Financing Selection of The Small and Medium-sized Hydropower Enterprises in China. At the beginning, it describes the current status of financing of the hydropower enterprises in China and overseas. And it analyzes the features of operation and the current status of development according to the actual conditions of the small and medium-sized hydropower enterprises in China, and then it describes the basic features of financing, current status of financing and the reason for the difficult financing. Finally, it analyzes the methods and necessity of selection and diversification of financing modes of the small and medium-sized hydropower enterprises in China.Chapter Five:Case Studies. It describes the basic conditions of selection of financing modes of BN hydropower company and summarizes this case on basis of analysis for the actual financing case of BN hydropower company.Chapter Six:Suggestions on Selection of Financing Modes of a Small and Medium-sized Hydropower Enterprises in China.The main contributions of this thesis are as follows:The detailed investigation and discussion are carried out in this thesis in review of the strategy of selection of financing modes of a small and medium-sized hydropower enterprises in China, from the point of view of the theory, combining the author’s achievements on actual work practice and through the case of the enterprise. It describes the financing’s different kinds of mode and strategies combination according to the principle of combining theory with practice, and it develops the new financing channels and strategies on basis of the traditional financing modes and selects the financing management modes which can suit the features of a small and medium-sized hydropower enterprises in China under the premise of following the related laws and regulations of China.