IS strategic alignment has consistently been at the forefront of information systems researchers’ and practitioners’ concerns since the seminal paper by Henderson and Venkatraman in 1993. However, scholars have focused more on strategic level alignment. As one of the important perspectives in IS strategic alignment, IS operational alignment are not paid enough attention in the research. This paper investigates operational alignment issues in a Chinese multinational state-owned company. The base research design for the study uses a rigorous Strauss and Corbin grounded theory approach, that consisted of 41 semi-structured interviews in 7 different company branches located in different provinces of China. Based on this study, the IS operational misalignment situations are identified. Furthermore, the causes and consequences of the misalignment situation are further investigated in this Chinese SOE group.