Research On The Financial Sustainable Growth Ability Of China’s New Energy Automobile Enterprises

In order to relieve the pressure of fossil energy and practice the new development concept of "green" and "low carbon",General Secretary Xi Jinping clearly put forward the strategic goals of "carbon peaking" by 2030 and "carbon comprehensive" by 2060.This goal is not only China’s solemn commitment to build a community with a shared future for mankind,but also an important issue for China’s economic development from high-speed growth to high-quality development.As a major automotive country,transforming from traditional fuel vehicles to new energy vehicles is not only the main way to achieve the "dual carbon" goal,but also an important means for China’s energy security and energy structure transformation.With the development,more and more enterprises want to seize the fast lane in the field of new energy vehicles,and expansion has become the most common way.However,the most immediate consequences of the mismatch between resources and expansion speed are the rupture of the capital chain and the difficulty of enterprise survival.In order to avoid excessive consumption of resources due to blind expansion by managers when formulating strategic policies,or idleness of resources due to excessive conservatism,this article,based on the theory of sustainable growth,selects BYD,a leading enterprise in the new energy vehicle industry in China,as the object of a case study,and uses a combination of internal and external analysis to study the financial sustainable growth capacity of BYD.This article uses literature research and case study methods to study the financial sustainable growth ability of new energy vehicle enterprises in China.Firstly,the PEST model and Porter’s Five Forces model were used to analyze the external environment of BYD,a new energy vehicle,from both macro and industry competitive perspectives,and evaluate its external performance.Secondly,in the analysis of the internal environment,it was carried out from the aspects of core competitiveness,corporate culture,and financial situation;In terms of financial situation,the Higgins model is used as the main analytical tool;Once again,based on the actual situation of enterprise operation,the Higgins model has been improved and the financial indicators involved have been further decomposed in detail;Finally,by combining the internal and external environment and focusing on the future,the development prospects and potential risks of BYD were predicted.Through the research on BYD’s financial sustainable growth ability,it is found that the policy drive,the stable development of economy and the accumulation of social culture have provided a solid foundation for the cultivation of BYD’s financial sustainable growth ability,but the threat of potential entrants,substitutes,buyers’ bargaining power and fierce competition among enterprises have hindered it.In addition,in terms of finance,BYD’s growth is mostly exceptional,and it is mainly driven by the net interest rate of sales,and there is insufficient profitability,the consumption of resources does not match the income obtained.This paper puts forward corresponding suggestions to solve the problems existing in BYD,hoping to serve as a reference for other similar enterprises.