Research On Combination Between Industry And Finance Of China Shenhua Energy Company Limited

The theory of integration of industry and finance has a long history in the world.However,due to China's political and economic policies and other reasons,the combination of financial and economic development in China is only in the embryonic stage,and there are a great many of large and medium-size enterprises equipped with the ability to integrate capital and finance.The Shenhua Group,as a well-known domestic energy company,has been supported by the government fund for many years.The group has a great amount of coal reserved.In the international community,the company also engages in several businesses.Besides coal business,the Shenhua.Inc operates a set of coal production and sale,such as power sale,railway transportation,coal and secondary products.Cross-industries business model has led the company placed in an outstanding position.However,the group has to navigate their main business from traditional coal to industry-wide businesses because of the downfall of coal industry.In the industry,there were successful models that those companies transformed.So,in this special and critical period,the company can develop a further step with the combination of production and finance.This paper,based on the mature materials and company's background,analyzes the theory about the integration of industry and finance,and analyzes the strategic planning of the Shenhua Group.Based on a number of financial indicators,the paper shows the analysis of the business situation in recent years.Furthermore,the necessary of the combination in the company is discussed.The company's existing combination of production and financial model is explained.The operating mode and profitability of the group are analyzed.Then,it points out the shortcomings of the existing combination of production and finance.According to the successful models in the industry and common theory,it puts forward the proper and possible model that the company can implement.Finally,the risk about the combination of industry and finance is estimated,which can be solved by corresponding auxiliary measure.