Study On Twelfth "Five-Year Plan" Development Strategy Of Sichuan Hydropower Investment&Management Group Ltd.

Sichuan Hydropower Investment Management Group Co., Ltd. authorized by the provincial government, is a large state-owned enterprise, who is responsible for investment, operation and management of local power. The Group’s development is necessary not only for the increase of the state assets but also for the people’s livelihood as well as for supporting the development’s strategy of "two speed" in Sichuan province. In an increasingly severe environment for enterprises’ development, it is urgent for development of Sichuan Hydro that how to solve the development strategic problem which affect the survival and development of the Group to achieve the long-term strategic target of the group and ensure the sustainable development of the group.To summarize the development course since the establishment of the Group, it can be found that in order to solve the survival and development problem the Group has no choice but to execute capital operation. However, capital operation in the early stage is mainly a means to solve the enterprise’s survival and the development problem. It is a passive process, lack of systematization and planning, and the enterprise stayed on the edge of the capital market. From a long-term perspective, the Group must set the capital operation as a long-term strategy, and deepen it in the whole process of enterprise operation management.This paper is mainly based on the analysis of strategic problem of Sichuan Hydro. It discusses the enterprise’s strategic management of capital operation. It takes the Sichuan Energy Investment and Development Co., Ltd. as a main case. The paper is divided into four parts:Part Ⅰ:It traces the Group’s history and points out the mission and the strategic challenges:incomplete system reform in the national electric power system, few innovations in the enterprise’s business model, the rising net monopoly, the inefficiency of resource allocation, the operation problem of assets, and the local power enterprise’s problems. Part Ⅱ:By anglicizing the power industry characteristics, market characteristics and the investment industry, this part tries to find out the solutions of the strategic problem, and one of the solutions is the Group capital operation.Part Ⅲ:This part introduces the practical experience of Group capital operation, and analyzes the strategic significance of capital operation for the Group’s development. It points out the ways of capital operation for the Group and the strategic capital management, which is to take the direct financing by listing on the stock market.Part Ⅳ:Based on the listed scheme of Sichuan Energy Investment and Development Co., Ltd., this part makes an empirical study of the Group strategic capital operation.