Research On Financing Strategy Of BY Company Based On Sustainable Growth

The new energy vehicle industry is a strategic choice for China to cope with environmental pollution and the shortage of fossil energy,and also an important support for the sustainable development of China’s economy and even the world economy.Since 2009,under the strong support of national policies,the new energy vehicle industry has achieved rapid development,especially the implementation of the subsidy policy,which has become a boost to the rapid development of the industry.In recent years,the decline of subsidies has temporarily slowed down the development of enterprises.During “the 13 th Five-Year Plan”period,the state continued to formulate other relevant policies to help the development of the new energy vehicle industry and achieved remarkable results.At the end of “the 13 th Five-Year Plan”,“the 14 th Five-Year Plan” also ushered in two development opportunities for new energy vehicles.The new energy vehicle industry is a capital and technology intensive industry,and its operation requires a large amount of capital,Therefore,it is necessary to analyze the financing strategies of enterprises from two dimensions of financial sustainable growth and value creation.On the basis of analyzing and combing the relevant theories and relationships of financial sustainable growth,economic added value and financing strategy,the EVA/SGR matrix established by the two-dimensional objective of economic added value and financial sustainable growth is selected as the analysis tool,and the new energy vehicle BY company is taken as the research object,it is found that BY company mainly relies on short-term debt to raise funds for growth since its listing,and adopts a radical financing strategy.Then through the EVA/SGR matrix to further analyze the applicability of the previous financing strategies of the enterprise,summarizes the problems in the financing strategy selection of BY company,and finds that BY company has realized value creation since 2015 since its listing,but is basically in a state of rapid growth with serious shortage of funds.In terms of financing strategy selection,the company did not make rational use of internal financing,and still made higher dividend distribution in the year of capital shortage;lack of application of equity financing;preferred debt financing,especially short-term debt financing,due to the high financing risk,which made the company’s asset liability ratio and current liability ratio at a higher level,with greater financial risk;it does not meet the requirements of sustainable financial growth and has the risk of overdraft of financial resources.Under the aggressive financing strategy of excessively relying on debt financing,especially short-term debt to achieve rapid growth,capital chain fracture crisis is more likely to occur.Therefore,in view of these problems,the short-term and medium-term and long-term financing strategies of BY company are improved to promote the company to achieve the dual goals of financial sustainable growth and value creation.In view of the recent use of the percentage of sales method to predict the capital demand,a more detailed financing plan was designed;and the medium and long-term financing strategy due to many variables,leading to the reasons of difficult prediction,mainly put forward the direction of improvement.