Corporate financial performance provides a comprehensive overview of a company's financial standing over time, and outstanding financial performance is pivotal for attracting investors and talent, enhancing corporate reputation, and propelling organizational growth. The economy of Western China has flourished, driven by the national policy of the Western Development Area. However, companies in Western China now face challenges, such as resource depletion and environmental degradation. Issues with corporate financial performance, and the underlying reasons for these issues in Western China are analysed. Finally, steps are proposed for the improvement of corporate financial performance in Western China, including fortifying the core values of the enterprise, strengthening knowledge management, strengthening R&D, driving comprehensive digital economy adoption in enterprises, enhancing innovation-driven, promoting corporate identity and strategising business plans, revamping the incentive structure and fortifying the CEO identity. These suggestions will help companies to boost their financial performance and foster the growth and advancement of enterprises in Western China.