Causes And Countermeasures Of Loss Of County-level A Power Supply Company In Fujian Mountainous Areas

With the beginning of the joint-stock reform in 2002,Fujian province's county-level power supply companies have gradually achieved "factory network division",and by 2012 the government held all the shares on the State Grid Corporation,and county-level power supply companies all restructured to wholly owned subsidiary,investment continues to increase,the power grid has been growing,the line loss rate has been decreasing,the user power supply reliability rate continues to increase,and the scale of sales has also been expanding.In general,the county-level power supply companies operate in good condition,and were profitable in 2009-2016.In contrast to the overall profitability of county-level power supply companies among the province,the county-level power supply companies in mountainous areas have suffered substantial losses and the loss has continued to expand.Most companies have lost more than five consecutive years and accumulated losses were up to 960 million Yuan by 2016.Under the influence of substantial losses,the asset-liability ratio of mountainous power supply companies has risen sharply,with more than 100%of individual companies,and the sharp fall of financing ability and the serious shortage of working capital will lead to an unprecedented crisis of survival.This paper first brief introduces the characteristics of the industry and the overall situation of the county-level power supply companies in Fujian mountainous areas.Secondly,for many years of continuous loss of county-level A power supply company as the research object,and its operating conditions from 2009 to 2016 are analyzed,then the paper seeks the reasons of its operating trouble,increasing loss year by year and increasing financing pressure.The paper puts forward some suggestions on how to deal with the loss of A company.Finally,the author summarizes and prospects the research situation of this paper,and believes that with the development of the country,the gradual improvement of the market economy,the further implementation of the reform of the power industry,mountainous county-level power supply companies can not only meet the needs of their own development,but also be in line with government and social development requirements.Starting from the basic theory of loss problem,this paper introduces the basic theory of loss first,and then studies the loss problem from the operating,institutional and environmental aspects,and adopts factor analysis method,trend analysis method,ratio analysis method and profit and loss balance point theory,and to analyze county-level A power supply company from the operating,institutional and environmental aspects,and puts forward corresponding countermeasures to reverse the current loss of county-level A power supply company in the mountainous areas.