Research On Financial Performance Of Diversification Operation Of China National Coal Group

Diversified management is a form of production and management in which an enterprise is not limited to a certain product or an industry during the development process.It is a strategic choice for enterprises to diversify risks and actively develop new businesses.As early as the 1960s,western countries set off a wave of diversified management.In China,due to the late start of the market economy,diversified operations did not start until the late 1990s.Many listed companies use sufficient funds to conduct large-scale restructuring of the same industry or cross-industry in the market,and quickly carry out diversified operations in parallel with multiple businesses,bringing many positive financial effects to the development of enterprises.Coal resources are non-renewable,and coupled with the continuous adjustment of national macro policies;the development of coal enterprises is currently facing many serious challenges.Coal companies can only actively develop coal-related power,coal chemical industry,coal equipment and other industries in accordance with their coal main business advantages,and implementing diversified operations has become the only way for sustainable development.Based on core theories such as financial performance evaluation and diversified operations,this paper selects China National Coal Group,which implements diversified operations,as a case study.This paper uses the method of case study to explore the impact of diversification on financial performance,and puts forward operational ideas and measures.The full text is divided into six parts:first is the introduction part,this part mainly discusses the content of this study and its significance and methods,as well as the background of the study and the international situation for the study and innovation.Secondly,it is the related concept and theoretical basis of diversification,that is,the second part of this paper,It simply describes the concept of diversification and related theoretical basis.The third part is the overview of China National Coal Group’s diversified operations.It introduces the background of China National Coal Group’s diversified operation.It also analyzes the present situation of the group from the perspective of the external and internal causes.The fourth part is the financial index analysis of China National Coal Group’s diversified operation.Through the study of a variety of financial indicators,to explore the relationship between the two parts.The fifth part is the financial performance evaluation system of China National Coal Group.This chapter uses the efficiency coefficient method to evaluate the financial performance of China National Coal Group.The sixth part is the research conclusion and suggestion.It summarizes the research of the full text and puts forward optimization suggestions for its sustainable development.Through the research,it is found that diversification can improve the performance of enterprises to a certain extent.Through the analysis and evaluation of the financial performance of China National Coal Group,it can be seen that the positive impact of diversification on the financial performance of the enterprise is more significant,but there is still some room for optimization.China National Coal Group should carefully choose the path of diversified development,grasp the opportunity of diversification;Pay attention to the competitiveness of the main industry,form synergistic effect;Establish flexible adjustment and management mechanism,seize the opportunity and resist the market risk.