Study On The Impact Of Governmentsubsidies On The Profit Quality Of New Energyvehicle Enterprises

In recent years,with the emergence of environmental problems,people pay more and more attention to energy conservation and emission reduction,so they pay more attention to the development of new energy automobile industry.However,the new energy automobile industry started relatively late,resulting in high prices and insufficient supporting facilities.Therefore,government subsidies are needed to promote its development.With the continuous development of the new energy automobile industry,China’s government subsidies for new energy automobile enterprises are still relatively strong,so it is necessary to explore the impact of government subsidies on the profit quality of new energy automobile enterprises.This paper analyzes the overall situation of government subsidies and profit quality of new energy auto companies,and finds that government subsidies have affected the performance of new energy auto companies to a large extent.In a certain period of time,the net profit of enterprises will increase with the increase of subsidies.Increase,although the performance of enterprises has improved,but with the continuous reduction of government subsidies,how to deal with this crisis by new energy auto companies deserves further study.For this reason,this paper selects BYD,a typical new energy vehicle company,as the research object,using the literature research method.The case analysis method and comparative analysis method analyze the key data of the financial data between 2008 and 2017.By analyzing the current situation of BYD’s profit quality,and the scale and method of government subsidies obtained,the impact of government subsidies on the quality of profits is also explored.The study found that government subsidies can only improve the profitability of enterprises in the short term,and have not played a substantial role in improving the quality of their profits.To this end,this paper proposes relevant suggestions for improving the profit quality of new energy auto companies,and hopes to provide relevant reference for the development of new energy auto companies.