Research On The Impact Of Government Subsidies On The Financial Performance In CATL

With the depletion of energy and the intensification of environmental pollution,the state pays more and more attention to the development and utilization of new energy,and takes actions to vigorously support its development.The power battery industry is in the middle reaches of the new energy vehicle industry and the "heart" of the new energy vehicle industry,which has also attracted extensive attention.At the initial stage of development of each industry,its own conditions may be limited and have to rely on the assistance of the state.In China,the state has widely used a series of policies such as financial subsidies and tax incentives to promote the development of power battery industry.However,the huge subsidy is a "double-edged sword".The "fraudulent subsidy" in 2016 will not be an accident,and the increasingly serious problem of structural overcapacity has also attracted the attention of the government.Therefore,at the end of 2016,the government issued a new subsidy policy,announcing that the threshold of subsidies will be raised and the amount of subsidies will be reduced in the next few years,which means that the new energy vehicle industry will enter the stage of subsidy decline from 2017.Therefore,under such a new macro policy background,what will be the impact on the financial performance of power battery enterprises? What path does government subsidy affect the financial performance of power battery enterprises? What measures will enterprises take to deal with the total elimination of subsidies? These issues deserve attention.This thesis selects CATL,a leading enterprise in the power battery industry,as a case company to explore the changes in financial strategy,R＆D activities and the impact of government subsidies on its financial performance before and after the announcement of the decline of government subsidies.Firstly,it introduces the current situation of the industry,the national policy background and the basic situation of CATL,including the situation of enterprises receiving government subsidies.Secondly,it analyzes its financial strategy adjustment after the decline of subsidies from three aspects: investment behavior,business strategy and financing strategy in CATL.Then,according to the comparison between the government subsidies obtained in CATL and its R＆D investment,achievement output and human capital,this thesis analyzes and expounds the actual situation of its R＆D activities;Then,compare the changes before and after the ordinary financial indicators and the financial indicators after deducting the government subsidies,as well as the financial indicators under the sympathy form of GOTION,which is similar to the same industry,in order to study the impact of government subsidies on financial performance.Finally,the analysis shows that government subsidies can alleviate the financial pressure faced by enterprises in the short term,ensure stable cash flow,interfere with the investment direction,business strategy and financing cost of enterprises,and bring sufficient funds to enterprises for R＆D technology and market development.At the same time,with the decline of government subsidies and overseas competitors entering the domestic market,enterprises have to strive to strengthen their innovation ability.Although government subsidies can improve the current financial performance of enterprises to a certain extent,in the process of development,enterprises should not rely too much on government financial subsidies,but should enhance the core competence of enterprises,adapt the development of enterprises to national policies and market demand,and establish long-term competitive advantage.