Research On Financial Risks And Corresponding Strategies Affecting BYD Auto

With the development of economic transformation,the market competition is more intense,and earth shaking changes have taken place in various industries,In particular,the development of the new energy vehicle industry is the most prominent.Our government to support the sustainable development of the industry has made a more subsidies and preferential policies,such as: new energy automobile car-buying subsidy,tax shall be exempted from car and so on,thus promoting the new energy vehicles.Exemption of vehicle purchase tax,etc.So as to promote new energy vehicles.In this context,some automobile enterprises often use national policies to defraud subsidies.In recent years,there are not a few cases.Affect the normal development of new energy automobile market.In order to guarantee the better development of the industry,the government and put forward the fiscal subsidy and increase access to new energy vehicle standards,through these measures to maintain the normal development of new energy automobile market,but also brought more challenges to the new energy vehicle industry,Especially under the fierce competition,how to make the enterprise to adapt to the change of the external policy,improve their ability to adapt and risk control ability,these are all important topic worth studying,it is also an important direction in this paper,we study.Many new energy vehicle enterprises have initiated risk management and control measures to improve the enterprise risk response ability,reduce the stimulation of various risk factors,so that enterprises can develop rapidly in the automobile market and respond to various problems as soon as possible.As far as financial risk management is concerned,risk assessment is a crucial step as well as an indispensable link.Risk assessment can supply more basis and reference for risk management.And can also make effective response in time before the risk comes to reduce financial loss and ensure the good operation of new energy vehicles.Surely,a series of policies launched by our government have given high sustain to new-energy automobile enterprises and benifit the new-energy automobile industry.However,there are few studies on new-energy automobile enterprises in the academicfield,and there is no research on financial risk control of new-energy automobile enterprises.For this reason,the author chose BYD Auto company as the research object,analyzed its financial risk identification and control.As the representative and leader of new energy vehicle enterprises,the company has studied new energy vehicles for nearly ten years,and is very prominent in product research and development,In product development,team building,marketing layout is very prominent,especially in recent years in the country’s good macro policy,under the influence of enterprise development scale is expanding.However,the company also has many financial risk problems,such as: the profit level is generally not high;the solvency is all declined,etc.Therefore,it is necessary to find out the financial risk,influencing factors and the causes behind the risk based on the basic theoretical research and practical investigation and analysis,The measures to identify and control risks are designed.It is hoped that the research results of this paper can help BYD company to make a better transition during the key period.At the same time,it also has some reference value for other enterprises.The empirical research part of the data,derived from the financial data disclosed by BYD,sampled the financial data from 2017 to the end of 2019,identified and analyzed its financial risks.Build the risk evaluation system,comprehensive use of the entropy value method and the efficacy coefficient method,evaluated the enterprise financial risk level,and to find the culprit behind the risk,response measures.To sum up,the following conclusions are drawn: BYD’s financial risk coefficient is high,there are financial risk problems.Especially since the development of 2017,the overall financial situation is not optimistic.Although it has improved in 2018,there is still the reality of insufficient debt service.Poor working capital management,coupled with the impact of internal and external factors,such as the government’s reduction of subsidies for new energy vehicles,the industry competition is fierce,the long-term and short-term financing is unreasonable,and the project investment decision-making is unscientific BYD continued to influence the development of the enterprise..