| Under the circumstance that environmental pollution and energy shortage continue to plague the development of our country’s traditional automobile industry,new energy vehicles have attracted widespread attention in the market due to their significant advantages of using unconventional vehicle fuels,and have been vigorously supported by our country’s policies.In 2021,the number of new energy vehicle sales have grown rapidly,driving the installed capacity of power batteries to increase significantly.The demand for lithium,the raw material of power batteries,has surged,and there was a situation in which the supply was in short supply.Superimposed the adverse effects of the epidemic,the market price of battery-grade lithium carbonate has increased fivefold in a year.The soaring price of lithium has led to the phenomenon of "increasing revenue without increasing profits" among major new energy vehicle manufacturers and power battery manufacturers,so major companies have begun to scramble for lithium resources.As a leading company,BYD has been implementing a vertical integration strategy for many years,and has been deploying lithium resources globally since 2009.Since most of the existing literature focuses on BYD’s overall industrial chain layout,and rarely conducts in-depth research on its lithium resource layout.Therefore,in the context of the soaring lithium price,this paper innovatively takes BYD’s holding and shareholding in the upstream lithium mining industry as the main research content,in order to understand its performance impact on BYD,and provide an effective reference for BYD and other manufacturers’ next strategic actions.This article is divided into five parts.The first is the introduction,which mainly introduces the relevant background,the purpose and significance of the research,the main content and research methods,innovations and defects;the second is the literature review,which mainly includes the overview of reorganization and industrial chain,and the motivation and effect of vertical reorganization;the third part is the case introduction,including the development status and industrial chain structure of the new energy vehicle industry,the basic situation of BYD,the motivation and specific layout of its upstream lithium resources;the fourth part is the focus,mainly through the event research method and financial analysis method to study the short-term wealth effect and medium-to-long-term financial synergy effect brought by BYD’s layout of upstream lithium resources;finally,we have come to a conclusion through the above research,and we have put forward relevant suggestions for the future development of BYD and the new energy vehicle industry chain.BYD has a wide range of lithium resources layout.It not only participated in the domestic Zabuye lithium industry and Salt Lake BYD in 2011 and 2017,but also targeted the lithium mine in Chile in 2022 in order to obtain a stable supply of lithium resources.After analysis,this paper concludes that BYD’s layout of upstream lithium resources can bring positive wealth effects to the group in the short term,and can reduce the group’s transaction costs and increase the overall profit margin in the medium and long term.BYD has played a good reference value for other companies in the industry.Specifically,the market has given positive feedback to BYD’s participation in Zabuye Lithium in the short term,and the stock buying trend is obvious,which has brought a positive impact on BYD’s short-term wealth effect;when BYD announced the establishment of BYD Salt Lake,the market’s response to BYD’s move is relatively stable,and the cumulative excess rate of return has a slight growth trend,which generally brings a certain degree of positive wealth effect to BYD.In the medium and long term,through the financial simulation method,we found that if the lithium carbonate projects of Zabuye Lithium and BYD Salt Lake are put into production according to the original plan,BYD’s cost of sales will decrease slightly,and the net profit margin and ROE will increase slightly.After comparing with comparable companies,we found that although BYD’s advantages compared to traditional car companies are not significant,BYD’s overall strength in my country’s new energy vehicle industry is relatively strong.In the future,as the lithium carbonate project is actually completed and put into production,BYD’s cost advantage and profit advantage will be further deepened.Finally,this paper draws suggestions that after the enterprise completes the vertical reorganization of the industrial chain,it should focus on improving its own integration ability.In the context of soaring lithium prices,in addition to extending business to upstream lithium resources,we should also actively look for alternatives to lithium batteries,such as sodium-ion batteries.Secondly,increasing the recycling and utilization of power batteries is also an effective way for reference. |
