The Impact Of Government Subsidies Recession On The Firm Performance Of High Dependence New Energy Automobile Enterprises

China’s new energy automotive industry started in 2009,and up to now,it has gone through three stages in the product life cycle: the germination stage,the cultivation stage and the development stage.The policy characteristics of each period are constantly changing.Generally speaking,it can be summarized into three aspects: the technical indicators are constantly improving,the subsidy quota is gradually decreasing,and the speed of subsidy recession and the scope of vehicle types are gradually expanding.In the absence of government subsidies,what changes will happen to the performance level of those automobile enterprises that rely heavily on government subsidies? This paper chooses Anhui Ankai Automobile Co.,Ltd.(hereafter referred to as Ankai)as the research object to explore the impact of the new energy subsidies policy on their performance.In the process of research,this paper chooses the financial data of Ankai from 2015 to 2017,at the same time,refers to the notes to statements,and excludes the influence of government subsidies from the balance sheet,profit statement and cash flow statement.In the process of performance analysis,referring to the evaluation index of company performance in the Standard Value of Enterprise Performance Evaluation in 2017,this paper makes quantitative and qualitative analysis on the profitability,asset quality,debt risk and business growth of the case company.In the process of analyzing the profitability of Ankai,after eliminating the influence of government subsidy,the surplus cash guarantee multiple turns negative and positive,but this positive influence is based on the premise that the net operating cash flow and net profit are negative for three consecutive years.Therefore,the positive change of Ankai’s profitability index does not mean that the company’s profitability and cash flow situation improved when subsidies declined.In the process of analyzing the asset quality of Ankai through the two indicators of liquidity assets turnover rate and asset cash recovery rate,this paper finds that the large amount of government subsidies receivable reduces the asset quality of enterprises,so the decline of government subsidies has a positive effect on the above two indicators.In the study of debt risk,this paper finds that the decline of government subsidies will increase the debt risk of enterprises.In terms of business growth,the decline of government subsidies will reduce the growth rate of total assets,which will have a negative impact on the growth index of Ankai.Through the analysis of the financial performance of Ankai,the following conclusions are drawn: firstly,Government subsidy recession reflects the financial situation of enterprises more truthfully,and subsidy recession has both positive and negative effects on enterprise performance.;secondly,The drawbacks of Ankai in cash flow and receivables management,especially after the government subsidy recession,will aggravate the drawbacks.;thirdly,Ankai’s own operating conditions are not good,and it is in urgent need of reform and breakthroughs.At the same time,in view of the problems reflected in the analysis process,this paper also gives corresponding suggestions.Firstly,enterprises should offset the disappearance of the price advantage of new energy vehicles by reducing the cost driven by technological progress;secondly,enterprises can strengthen the management of cash flow by changing the sales mode of buses.Thirdly,in the future,new energy automobile enterprises should improve their technological level and infrastructure as the main development direction.