Research On The Impact Of Government Subsidies To China's New Energy Auto Enterprises' Financial Performance

In recent years,the overall sales volume of the automobile industry in China has been growing slowly,and the sales growth of the traditional motor vehicle is stagnant because of the restriction of the policy.And the status of the new energy vehicle is increasing with the support of the national policy and the development of the low carbon economy.Foot new energy automotive industry has achieved good results.Moreover,the attention of new energy vehicles is also significantly higher than that of traditional cars,and its market share is also growing rapidly,with great potential and space for development.Of course,the rise of new energy vehicles is inseparable from the support of government subsidies.Whether it is from the purchase policy,or from the relevant laws and regulations and tax policies,the government has a great impact on the financial performance of the new energy auto enterprises.In the final analysis,the real purpose of subsidies is to enhance the confidence and core competitiveness of enterprises,thereby stimulating the independent and healthy development of the new energy vehicle industry.In recent years,the new energy vehicle market,BYD,as the leader of the national automobile brand,is also the leader of the new energy vehicle,and its performance is very eye-catching.The brand ranks first in the market share of many new energy vehicle brands,and is more than 50%.It is a well deserved industry tycoon.BYD's brilliant performance is also inseparable from the support of local and central government grants.At the beginning of 2013,BYD's new energy car business received billions of government subsidies directly into the current profit and loss,reaching a high of 798 million yuan in 2014.But after the promulgation of the new accounting standards,the profits and profits of Byd Co are also controversial.Over the years,large government subsidies are directly counted out of business income,which will undoubtedly give people doubts about their true level of profitability.Behind the considerable financial performance of BYD,how much is the "bonus" brought by government subsidies? It is worth studying and discovering.As a result,BYD,as a new energy leading car enterprise and a high government subsidized enterprise,has a strong representation for the study of the financial performance of the government subsidies to the new energy auto enterprises.Taking the BYD Co as the representative of the new energy automobile enterprise,this paper,based on the relevant financial report data in recent years,is based on the study of the influence of the government subsidy on the financial performance of the enterprise,and analyses what kind of subsidies,how to produce influence,what kind of influence and what problems exist.Put forward questions and case suggestions.Through the study,it is found that the government subsidy can affect the financial performance,especially in the profitability and solvency.It has a weak contribution to the operating ability and development ability of the enterprise,and has not brought a far-reaching effect on the strategic development of the enterprise.After the government subsidies,the financial performance of BYD is obviously reduced.Investors need to be cautious about superficial financial performance.Finally,based on the above research,we put forward relevant suggestions from the perspective of enterprises,governments and investors.