A Research On Financial Analysis For NIO Co.,Ltd Based On Harvard Analytical Framework

With the increasing global resources shortage and the increasingly serious environmental pollution,environmental protection and energy-saving related industries have been paid more and more attention.The development of new energy vehicles has reached consensus worldwide.In this context,China’s new energy automobile industry has developed rapidly in the past five years,and NIO Co.,Ltd is the first listed company in China’s electric vehicles.The author uses the Harvard analytical framework as a model to conduct an in-depth analysis of its strategy and finance.It aims to analyze the problems faced by enterprises and provide suggestions for their long-term healthy development,and provide reference for similar enterprises in the industry.This paper mainly adopts literature collection and collation method,PEST analysis method,SWOT analysis method,qualitative and quantitative combined analysis method.Firstly,it analyzes the external macro environment and industry competition environment faced by the company: analyzes the macro situation faced by the company from the four aspects of economic environment,including legal policy,social environment and technical environment.Then analyzes the industry environment in which it is located.Then,based on the company’s annual report disclosed in 2018,it analyzes the company’s accounting policies and financial status: including the differences between the US accounting standards and international accounting standards adopted by the company and its impact on the financial disclosure of the annual report.In terms of financial analysis,compare the industry benchmarks and industry averages.The company’s current problems and gaps are analyzed in terms of the company’s profitability,operational capability,solvency and cash flow.Finally,we use the relative valuation method and forecast the profit and cash flow forecast in the next three years to forecast the company’s development prospects.In the current situation where the national policy subsidies have subsided and the number of new competitors in the market has increased,it has a greater impact on the company’s core products and the core competitiveness of the company.At the same time,due to the company’s previous investment in product marketing and related management costs,it caused a lot of losses,which puts a lot of pressure on the company’s capital chain;it is predicted that the company will not be able to reverse the loss in the next few years,and will need to refinance in the next two years.The new energy automobile industry is still in its infancy in China,and its future prospects are broad.As a very young automobile manufacturing company,NIO Co.,Ltd needs to strengthen in many aspects in order to gain a foothold in the competition and gain more market share.The core competitiveness of products,improving financial status,and maintaining a healthy and healthy cash flow are the most important issues at present and the key to ensuring its long-term sustainable development.