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In order to focus on the efficiency of investments and consider the differences among different industries, CHNG changed the Contracting-Based System to the Performance Evaluation

In order to focus on the efficiency of investments and consider the differences among different industries, CHNG changed the Contracting-Based System to the Performance Evaluation System in 1997. It also adjusted the evaluating indicators to reflect both efficiency and process controls. In this system, Return on Equity, Increase in Equity, and other ratios are used. Meanwhile, in order to reflect the risks of debts and the ability to pay back its debts as well as to change the existing high Debt Ratio in CHNG, it replaced the Increase in Equity with the Return on Total Assets. With the deepening reform, CHNG's power generation subsidiaries became independent and autonomous. The new system also pays attention to the production process. Indicators such as Output, Profit, Loans Repayment, and Securities are used to evaluate the performance in accordance with the character of its operation. For those branches majoring in the management of power corporations, indicators such as Output and Return on Capital are used. In other words, evaluation is conducted separately between power generation subsidiaries, non-power generation subsidiaries, and branches.

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