The Research Of Working Capital Management Of Huadian Power International Corporation Limited

In recent years, the research of working capital has paid great attention by scholars and enterprises. Working capital plays an important role in enterprise operation. Only if make efficient and flexible use of the working capital, can the enterprise joint the production and the market in a link. In the end, the company could develop rapidly and occupy the dominant position in the competition.In history, power industry has played an important role in economic development. It is one of our basic industries in China, it is subject to the government’s attention, policy support and caused great attention of investors, which became a unique sector of the stock market, electricity plays a fundamental role in the development of economy. Therefore, it has great significance to study the Huadian Power International Corporation Limited, which is the representative of the power industry.In this paper, the working capital management performance evaluation system is based on summarizing the previous on working capital theory. The theory combined on the basis of elements and channels factors. This evaluation system is fully considered of inventory, accounts receivable, accounts payable and other elements using status in operating capital, and also contains the other operations of enterprises involved in the process of all working capital project, like the employee pay payable and the taxes should be paid.This research can fully reflect the enterprise’s working capital management situation and easy to evaluate it.In this paper, based on the Huadian Power International Corporation Limited, which can representative of the power industry. we applied on the basis of elements and channels working capital management performance evaluation index system. Analysised the status of working capital management of Huadian Power International Corporation Limited, and summed up advantages and disadvantages, and put forward the solutions. These measures not only for the Huadian but also for the power industry enterprises with the same problems. I hope this will have certain help to the whole industry.