| The automotive industry is a representative of the national industrial system and an important scene for the application of new technologies.As a collection of various cross-border new technologies,the development of new energy vehicles has promoted the development of industrial intelligence in China,becoming an important force to accelerate innovation in other industries,making China a further step towards becoming a powerful automobile country.New energy vehicles have the advantage of renewable and recycled utilization,which can effectively solve a series of prominent practical problems that currently restrict China’s development,such as energy supply,environmental pollution,etc.The scale of China’s new energy vehicle industry has expanded rapidly and become a medium and strong force leading economic development.In order to achieve greater and stronger industries,improve industrial competitiveness,and high-quality development,the Chinese government has introduced multiple tax incentives and capital subsidies under the policy of "supporting the strong and the strong",ensuring the transformation and comprehensive upgrading of the industrial structure of new energy vehicles.However,in recent years,in the face of economic downturn and declining policy dividends,listed companies of new energy vehicles in China generally face difficulties such as relatively tight financial resources,continued decline in sales growth,prominent debt risk risks,difficulties in collecting accounts receivable,and serious inventory backlog.BYD Co.,Ltd.,as a leading enterprise in the new energy vehicle industry in China,is also facing the financial sustainable growth challenge against the backdrop of declining government subsidies.Therefore,studying the financial sustainable growth capacity and development potential of BYD Co.,Ltd.will help us to conduct a comprehensive assessment of BYD’s current development situation and make a correct prediction of its development prospects.Through sorting out the relevant theories and existing literature on sustainable financial growth,this article selects the Higgins model to analyze BYD’s annual financial reports from 2010 to 2021.Firstly,this paper calculates the financial sustainable growth rate of BYD and obtains the optimal development rate that the internal resources of the enterprise can support.Secondly,by comparing the difference between BYD’s financial sustainable growth rate and its actual growth rate,it is concluded that BYD has not yet achieved financial sustainable development.Due to the mismatch between BYD’s internal resources and capabilities and its rapid growth rate,BYD has been in a state of extraordinary growth in many years,and its rapid growth is largely driven by policies.Thirdly,this article analyzes the causes of problems in BYD’s sustainable financial growth process,and finds the crux of the company’s operational efficiency management and financial policy management-poor profitability and excessive reliance on government subsidies for profitability,low asset turnover efficiency,weak debt repayment ability,and prominent financial risks.Finally,this article puts forward some operational suggestions for the problems that arise during the growth process of BYD Co.,Ltd.,including: formulating appropriate sales strategies to increase profitability,strengthening technology research and development to improve core competitiveness,expanding domestic and foreign markets,rationally utilizing government subsidies to grasp future development trends,clearing accounts receivable to enhance credit management,improving sales strategies to accelerate inventory turnover Optimizing the capital structure to improve solvency,etc.I hope it can provide a reference for China’s new energy vehicle industry to achieve sustainable financial growth. |
PDF Full Text Request