The Impact Of Government Subsidies On The Financial Performance Of New Energy Vehicle Companies

Vigorously developing the new energy vehicle industry will help build China into a country with a sustainable,safe and efficient modern production system,and provide a direction for residents to live a green life and travel with low carbon.The government has provided support for the new energy vehicle industry,and government subsidies have had an important impact on increasing corporate income,R&D investment and improvement of operating cash flow.This paper first selects 14 representative new energy vehicle enterprises as the sample research objects as industry representatives.On the basis of fully considering the principles of authenticity,comparability,importance,operability and relevance required by the selection of indicators,as well as the combination of quantitative and qualitative considerations,Data envelopment analysis(DEA)is used to analyze the financial performance evaluation results of new energy vehicle industry under the influence of government subsidies.The evaluation results show that there are significant differences in the financial performance of different enterprises under the effect of government subsidies,and some enterprises cannot make full use of government subsidies to improve their financial performance.Based on the results,this paper selected Yutong Bus,a representative enterprise,as the research object in the new energy vehicle industry.Firstly,combined with data envelopment analysis(DEA),it analyzed the impact of government subsidies on the financial performance of Yutong Bus.The results show that Yutong Bus has made full use of government subsidies and effectively improved its financial performance.In order to further analyze the impact of government subsidies on Yutong Bus’ s financial performance,this paper continues to analyze and evaluate the changes in Yutong Bus’ s financial performance before and after the impact of government subsidies from five dimensions:profitability,debt paying ability,operation ability,development ability and cash earning ability.The results show that the government subsidy has a great help to Yutong’s profitability and cash earning ability,but has a small effect on debt paying ability,and only plays a maintenance and auxiliary role in operation ability and development ability.Finally,based on the above research conclusions,this paper puts forward some policy suggestions for the government,such as optimizing "R&D innovation" government subsidy policy,raising the threshold of "policy-guided" government subsidy policy,extending the implementation scope of government subsidy policy,and establishing long-term and effective tracking and supervision mechanism.For enterprises,the paper puts forward some policy suggestions,such as using "research and innovation" subsidies to strengthen technological upgrading,improving core competitiveness of enterprises,avoiding using "policy-guided" subsidies to expand blindly,improving enterprises’ own operating ability,optimizing performance appraisal,and getting rid of dependence on subsidies.