Research On New Energy Vehicles Listed Companies Earnings Forecast Correction

In recent years,the phenomenon of earnings forecast correction in the capital market has frequently occurred,which has aroused strong dissatisfaction among investors and other stakeholders.As a kind of predictive financial information for management authorities,earnings forecast is an important content of capital market information disclosure,and it is also the focus of China’s “Securities Law” to continuously improve and reform.The phenomenon of earnings forecast correction of listed companies is,on one hand,the serious neglect of China’s performance forecasting system;on the other hand,it also brings the problem of information distortion to policymakers.The new energy vehicle industry is one of the seven strategic emerging industries in China,and it plays an important driving role in the overall economic and social development and long-term development.Therefore,the quality of the earnings forecast correction of listed companies in new energy vehicles is also of extraordinary significance.So,in order to analyze the influencing factors and motivations of the new energy vehicle listed company’s earnings forecast correction,this article takes J&R Optimum Energy as an example,mainly uses case study method to explore it,and put forward related suggestions for prevention and treatment of this chaos.This article uses the literature research method and case study method,and selects the listed company of new energy vehicles——J&R Optimum Energy,as the case study object to study its earnings forecast correction event in 2018.First,it introduces the research background and significance of this article,reviews and collates the related literature on the quality influencing factors,motivation and economic consequences of earnings forecast correction,and sorts out and explains the historical process,content and development characteristics of earnings forecast correction system in China.Secondly,it introduces the new energy vehicle industry and J&R Optimum Energy Company,reviews the occurrence process of the J&R Optimum Energy earnings forecast correction event,and preliminary analyzes the related report items and amendment notices in the earnings forecast correction,laying the foundation for the in-depth analysis later.Thirdly,it is the case analysis.It starts with the industry and analyzes the general influencing factors of the new energy vehicle listed company’s earnings forecast correction from six aspects: subsidy policy,industrial chain,parts cost,financial risk,market competition risk and liability accident.Then,for the case company J&R Optimum Energy,it explores the specific influencing factors and deep motivations of its earnings forecast correction.Finally,after revealing the economic consequences of the earnings forecast correction,the related suggestions for preventing and managing the earnings forecast correction of listed companies in new energy vehicles are put forward,and it presents the research conclusions,innovations and limitations of this paper.Through case studies,this article draws the following conclusions: First of all,in view of the factors,the contradiction between the irrational expansion of production capacity and unmatched market demand has laid a foreshadowing for the earnings forecast correction.Affected by downward adjustment of subsidies,spread of the financial crisis,the impairment of a large amount of goodwill,and the lack of pre-audit results,eventually the earnings forecast of J&R Optimum Energy corrected,reducing its estimated net profit from 522 million to nearly 4.2 billion,and its net profit fell to negative 3.689 billion.Secondly,judging from the motivation of J&R Optimum Energy earnings forecast correction,it does not rule out the existence of its clever use of performance forecast to affect the stock price,so that large shareholders can accurately cash out,and the incentive to balance profits through impairment of goodwill.Finally,this article gives suggestions on preventing and managing the earnings forecast correction of new energy vehicles listed companies from the aspects of policy,management,and investment,and hopes to jointly maintain the quality of earnings forecast correction and improve the level of information disclosure.