The Financial Analysis On Huadian Power International Within The Harvard Framework

Power industry is the important industry of energy security and economic lifeline.It plays a important role in the social economy.Huadian Power International is one of China’s largest listed power company,is currently facing a complex environment,arduous task long-term transition test.Financial analysis is an important means of business management,it can provides relevant financial data for economic activity,and can also provide effective financial information to managers to make business decisions.The study use “Harvard analytical framework” to analyze the company and the overall state of the power industry.I use strategic as the starting point for the company strategic analysis,accounting analysis,financial analysis and prospect analysis.First,I sort out the power industry and the company’s competitive situation and strategy.Then,I analyze the important accounts and accounting policies of the power company.Next,I conduct a comprehensive analysis of Huadian Power International 2010-2014 financial statements.Then,I choose representative listed companies from the five major power groups as the main rival to analyze.Next,I make a comprehensive comparative evaluation of the five power companies.Finally,according to the conclusions of the comprehensive analysis,I make the substantive suggestions for the power industry and the company.Through this study,I draw the following conclusions: Huadian Power International is stepping up strategic opportunities to expand and transition.Its profitability and development capacity in the industry leading level,but its solvency is weak,and it’s also high financial risk.In terms of reform and innovation,marketing,research and development investment and social responsibility are to be strengthened.With the implementation of the strategy and restructuring,Huadian Power International is expected to gradually achieve its strategic objectives.