Research On The Impact Of New Energy Vehicle Subsidy Policy On BYD’s Financial Performance

In recent years,the rapid economic development has promoted the improvement of people’s living standards.Automobiles have begun to become a mean of transportation for thousands of households.However,traditional automobiles have brought huge challenges to the global environment and energy due to their craftsmanship and conform to the theme of energy conservation and environmental protection.New energy vehicles in China began to receive attention.In the past ten years,the new energy automobile industry has become a breakthrough in the transformation and upgrading of my country’s automobile industry.The government has issued a number of subsidy policies to guide and support it,and it has been upgraded to my country’s national strategy.The subsidy policy implemented in my country is large and powerful,so it is of great significance to study the impact of new energy subsidy policy on the financial performance of new energy vehicle companies.This article mainly combines externality theory,transfer payment and government intervention theory to explore the relationship between financial subsidies and corporate financial performance.Based on BYD’s financial data from 2012 to 2019,it analyzes the impact of financial subsidies on the financial performance of new energy vehicle companies.influences.Through the use of factor analysis to analyze the correlation between the financial subsidies of the previous period and the profitability,operating capacity,development ability and solvency of the company in the current period,to reveal the company’s dependence on financial subsidies and its own problems.Next,under the new subsidy policy,how new energy automobile companies can better respond to the "retreat" policy and how to improve their financial performance and propose solutions.Through research,it is found that financial subsidies have a positive effect on the improvement of new energy vehicle companies’ financial performance in terms of operating capacity and solvency.They can improve the short-term profitability of the company but are not durable,and have no impact on the development ability of the company.Significantly.Therefore,it can be seen that the financial subsidy has not substantially improved the financial performance of the enterprise,but only promoted the improvement of the financial performance in the short term;it also produced some negative effects,such as covering up the actual financial situation of the enterprise and misleading Companies neglect to pay attention to their own problems and so on.Therefore,companies should reduce their dependence on financial subsidies,continuously improve their innovation capabilities,strengthen cost control,and increase profit levels;they should also rationally adjust their capital structure,improve their debt-raising capabilities,and improve their financial performance.Through research and analysis of the impact of financial subsidies on the financial performance of new energy automobile companies,it has supplemented and expanded the research on the impact of related financial subsidies on corporate performance,and has also enriched the literature on the impact of financial subsidies on corporate performance.The proposed new subsidies Recommendations on financial performance improvement under the policy also provide enlightenment and reference for promoting the healthy development of new energy automobile companies.