The Analysis About BYD Company’s Financial Strategy Based On The Financial Strategy Matrix

In recent years,a series of policies has been issued to promote enterprises to use new energy to replace fossil energy.With the help of policies,the new energy vehicle industry has entered a stage of rapid development.With the development of the industry,many enterprises have adopted the transformation from gasoline vehicles to new energy vehicles,so the pressure of competition in the industry has intensified.In the context of this era,if new energy vehicle companies do not formulate reasonable financial strategies,they will not be able to gain a dominant position.Therefore,it is of practical significance to study the financial strategies of new energy vehicle companies.This thesis uses the research method combining literature research and case study,and selects BYD company,a well-known enterprise in the field of new energy vehicles,as the case study object.This thesis first introduces the research background and research significance,organizes and summarizes the relevant researches on financial strategy and financial strategy matrix by domestic and foreign scholars,and expounds the relevant theories.Then,this article introduces the development process of BYD,analyzes the external environment in which the company is located from the perspective of macro environment and industrial environment,expounds the company’s overall strategy,and introduces the company’s investment strategy,financing strategy and dividend distribution strategy.After that,the company’s financial data from 2014 to 2020 is selected,and the company’s current financial strategy is evaluated through the financial strategy matrix,and the shortcomings of the company’s current financial strategy are obtained.Finally,according to the shortcomings,put forward optimization suggestions.Through research,this thesis finds that the main problems of BYD company’s financial strategy include: unreasonable financing structure,low investment efficiency,and unstable dividend distribution policy.The causes of the above problems include the long return cycle of BYD Company’s funds and the excessive dependence on government subsidies.There are several optimization suggestions which has been put forward in this thesis.In terms of investment strategy,BYD company should concentrate financial resources on its business and establish an investment project review mechanism;in terms of financing strategy,BYD company should improve financing efficiency and formulate financing risk response strategies;in terms of dividend distribution strategy,BYD Company should reasonably formulate dividend distribution policy and strengthen working capital management.It is hoped that the research conclusions of this thesis can bring some inspiration to the formulation,evaluation and optimization of financial strategies of other companies in the industry.