The Case Study On The Financial Strategy Of BYD

Different from the traditional financial management theory which focuses on the goal of maximizing the company’s value in the short-term and neglects the long-term survival and development of the company,the financial strategy theory requires a comprehensive long-term oriented planning of the company’s financial activities in order to cope with the gradual complexity of the company’s development process.Changeable internal and external competitive environment.With the rapid development of information technology and social forms,the survival and development of enterprises are facing more uncertainties,and financial strategic planning is of greater significance to the stable development of enterprises.As a Fortune 500 company,BYD has always been a leader in the field of new energy vehicles,smart product assembly and secondary rechargeable batteries,and is a listed company with good performance.BYD’s success is inseparable from its excellent financial management capabilities,and it is worthy of in-depth research from the perspective of financial strategic management.This article mainly studies the financial strategy adopted by BYD Co.,Ltd.from 2013 to2019.First,the introduction part introduces the research background and value of this article;the second part carefully sorts out the financial strategy concept and analysis framework;the third part introduces the basic situation of BYD Co.,Ltd.and financial strategic goals and framework,Enumerates the main points of BYD’s financial strategy from the three aspects of investment strategy,financing strategy and dividend distribution strategy,and then evaluates the implementation effect of BYD’s financial strategy from the financial and non-financial perspectives,and draws some experience and enlightenment;Chapter Four Some problems in BYD’s financial strategy were put forward and the reasons were analyzed.Finally,optimization suggestions were put forward to provide experience reference for companies in the same industry or at the same stage of development.By studying BYD’s financial strategy,this article finds that the formulation and implementation of BYD’s financial strategy have effectively supported the realization of the company’s strategic goals.BYD has formulated investments focusing on the rapid expansion of its main business based on favorable market opportunities and internal technical advantages.There are many good experiences in the implementation of BYD’s financial strategy,such as timely adjustment of the financial strategy according to environmental changes,continuous emphasis on R&D investment,and use of short-term debt to control financing costs.However,everything is not perfect.There are still some shortcomings that can be further improved,such as low profit level,unreasonable debt structure,and single dividend distribution method.This article recommends that BYD should improve the evaluation mechanism of investment projects and Optimize the debt structure and adopt diversified dividend distribution methods to improve the level of financial strategic management and obtain higher income.