Effect Of Government Subsidies On Financial Performance Of Domestic New Energy Vehicle Enterprises

The development of new energy vehicles plays an important role in saving energy and protecting the environment.However,in the early development,it will face the problems of high research and development costs,high promotion costs and insufficient supporting facilities.Therefore,the government has injected into the new energy vehicle industry in recent years.A lot of funds are used to support the development of the industry.What impact these subsidies will have on the development of the new energy automobile industry and enterprises is worthy of our research.To this end,this article conducts research on the impact of government subsidies on the financial performance of new energy vehicle companies,with a view to putting forward targeted recommendations.This paper takes the listed companies of new energy vehicles as the research object,adopts the research method of case analysis and systematically analyzes the impact of government subsidies on the financial performance of new energy vehicles in combination with related theories.It focuses on the following contents: First,select eight new energy vehicle companies Financial data of the past five years,preliminary research on the impact of government subsidies on the financial performance of new energy vehicle companies;secondly,BYD,a representative of new energy vehicle companies,is selected as a case to introduce BYD’s development status and subsidy status,and for the past six years Research on the financial statements and financial performance indicators of BYD to find out the impact of government subsidies on BYD’s financial performance.Industry analysis and case studies found that: First of all,government subsidies can promote the financial performance of the new energy automobile industry to a certain extent.Then,the gratuitous government subsidies improved BYD’s profit and cash flow,and had a positive impact on BYD’s profitability,solvency,and development capabilities,but failed to have a long-term obvious positive impact on BYD’s various capabilities.Second,government subsidies for R&D and innovation can promote BYD’s R&D enthusiasm and have a positive impact on BYD’s innovation capabilities.Finally,because of the large amount of credit sales in the main business income,the low profitability of the main business,the large scale of corporate debt,and the low efficiency of subsidy utilization,government subsidies did not have a positive impact on the financial performance of the company.Based on the existing problems,relevant suggestions are made:increase support for new energy R&D and innovation,rationally select support objects,improve the efficiency of the use of subsidy funds,and improve the profitability of main business.It is hoped that it can provide a reference for the policy formulation of government subsidies and promote the healthy development of my country’s new energy automobile enterprises.