Financial Risk Evaluation Of New Energy Power Listed Companies Based On Entropy Weight Method

This new normal of the Chinese economy makes the structural reform of supplyside imperative under the situation.As the main direction of the energy structure adjustment,the development of new-clean and low-carbon energy means to increase the proportion of new energy consumption and accelerate the construction of modern energy system.That promotes the fast development of new energy industry.However,challenges co-exist with opportunities.With the impact of wind power and photovoltaic power curtailment,the development quality of new energy power generation enterprises is influenced by their financial management,and the operation performance after the connection to grid at an equal price is also linked to their financial situation.That's why the managers as well as the investors pay great attention on financial risks of the new energy power generation enterprises.It is important to establish the proper pre-warning mechanism of financial risk for the new energy power generation enterprises.After selected,33 listed companies are chosen to be study objects in this paper.The evaluation system is built from the aspect of profitability,short-term debt-paying ability,assets management level,solvency and cash management level,as well as the R & D investment intensity and governmental subsidy intensity,in reference to credit rating system of power generation enterprise in Chinese 4 major credit companies.After calculating the integrative entropy value of sample enterprise basing on the objective weighting method--entropy weight method,the paper ranks their risk level,and analyzes thoroughly on the enterprises with high financial risk.The financial situation of new energy power generation enterprises is not optimistic,with the distinct difference of the risk rank level within them.Many enterprises are graded as the medium warming even the heavy warming in three years in succession.The high financial risk of the new energy power generation enterprises mainly comes from their characteristics during development history,the high operating costs brought by the policy development,or the high debt,the single operating income structure,the excessive accounts receivable and the half-baked business management strategy.To control the financial risk,some suggestions are put forward in this paper: firstly,expand the financing channels and optimize the fund-raising methods;secondly,recognize adequately the harm of high debt and reduce the asset-liability ratio actively;thirdly,pay attention to the equipment and operation management;fourthly,focus on the technological innovation to reduce operational costs.