Research On The Impact Of Government Subsidy On BYD’s Financial Performance

In recent years,along with the increasingly serious environmental pollution,the national energy conservation and environmental protection consciousness enhancement,the new energy automotive industry has received more attention due to the new energy automotive industry started relatively late,leading to a high production cost expensive inadequate infrastructural facilities and a series of drawbacks,therefore needs the government to support the government to use government subsidies to guide enterprise to develop in a benign direction,speed up the upgrading of industrial structure,and the government subsidies for new energy automobile enterprises in our country are large,so it is necessary to study its effects on corporate financial performance.This article selects BYD,a typical new energy automobile company,as its representative,and uses its annual report financial data for the past five years as the basis to study the impact of government subsidies on the financial performance of the company.Analyze the impact,the reasons for these impacts,what problems exist,how to solve the problem,and make relevant suggestions.This article analyzes BYD’s financial data from 2014 to 2018.By analyzing the reasons,methods,and scale of BYD’s government subsidies,the impact on cash flow,profit,financialindicators,non-financial indicators and supplementary indicators EVA is obtained.Promoted BYD’s production and operation capabilities,and also helped it improve financial performance.Comparing it with the financial performance of the post-separation government supplement,it can be seen that if the government ceases policy support,BYD’s financial performance will decline significantly.It shows that government subsidies have become a "shadow" of financial performance to a certain extent.Without deep analysis and research,external information users cannot understand the true operating results and financial status of the enterprise.At the same time,it is not conducive for the company to conduct business analysis from a financial perspective,thereby creating the illusion of good development prospects and ignoring various problems existing in reality.Therefore,this article puts forward relevant suggestions.Enterprises should make reasonable use of government subsidies,increase investment in research and development,and improve core competitiveness.The government should strengthen subsidy supervision,improve the supervision mechanism,and investors should invest rationally.