Author(s)

Yuxue Cui, Ruixuan Dong, Lawrence Gao, Yining Sun, Xiangfeng Zeng

Corresponding Author

Yuxue Cui

ABSTRACT

Understanding the experience and methods of a successful company is very important and instructive. China National Petroleum Corporation (CNPC) is a giant state-owned enterprise, which is the one of the largest petroleum companies worldwide. The research aims at combining CNPC's financial performance with its unique business model to explain the potential reasons for some of its specific outstanding financial phenomenon. It conducts industry research with PEST analysis, Porter's Five Forces and some key metrics, as well as company research with SWOT analysis, business strategies and corporate culture. Meanwhile, the paper accomplishes in-depth horizontal and vertical analysis for CNPC's financial statements in 2019, calculates the financial ratios and makes comparisons with its competitor, Sinopec. In conclusion, the research reveals that faced with the complex international situation and the impact of the epidemic, CNPC made full use of its advantages as a leading state-owned energy supplier and actively carried out business structure improvement, thus maintaining good profitability and stable financial performance.

KEYWORDS

CNPC, Business model, Fiancial performance