Research On The Impact Of R&D Investment On Financial Risk In New Energy Vehicle Enterprises

With the rapid development and growth of the new energy vehicle industry in China,many traditional car companies and internet companies have begun to transform and enter.These enterprises enhance their market competitiveness by strengthening research and development investment to improve product performance.However,a considerable number of new energy vehicle companies did not balance their R&D investment with financial risks,ultimately leading to bankruptcy.R&D investment,as an important driving force for the development of new energy vehicles and a decisive factor in improving the competitiveness of new energy vehicle enterprises,is a key factor for them to establish a solid foothold in this industry.However,R&D investment has a dual nature,which can help enterprises strengthen their strength and also bring certain financial risks to these enterprises.The research methods of this article mainly include literature research,case analysis,and comparative analysis.BAIC Blue Park Company is selected as the case study object,and the data is sourced from the annual reports of various enterprises from2017 to 2021.This research process first analyzes the current situation of research and development investment in the new energy vehicle industry and its financial risk,and obtains the impact of research and development investment in the new energy vehicle industry on the financial risk status.Next,an overview was given of the situation of BAIC Blue Park Company and its current research and development investment.Afterwards,the annual report data of BAIC Blue Park and data from industry competitors NIO,Xiaopeng,and Ideal were introduced to analyze their R&D investment situation.The research results indicate that: 1.BAIC Blue Park’s high R&D investment has had a negative impact on its debt structure,and has put significant pressure on its internal and equity financing;2.The long R&D cycle leads to a decrease in product gross profit margin and affects the growth of business revenue and sales profit margin of the enterprise;3.The decrease in R&D conversion rate has led to a stagnation in enterprise asset growth,resulting in a large amount of idle production capacity and increasing management costs.This article suggests: 1.Shorten the research and development cycle by collaborating with enterprises or purchasing mature technologies;2.Increase the proportion of endogenous financing,Reasonably control the proportion of equity financing,strengthen inventory and accounts receivable management,and use government subsidies for R&D investment to expand R&D funding channels;3.Reasonably transform production capacity and plan production capacity through cooperation with Huawei to initiate transformation;4.Optimize the talent structure and enhance the strength of the R&D team.