Research On The Financial Risk Analysis And Control Of New Energy Vehicle Companies

In recent years,the growth of China’s automobile manufacturing industry began to encounter obstacles,the transformation of automobile manufacturing industry has become a necessary choice.New energy vehicles have become an important direction for the transformation of automobile manufacturing industry.On the one hand,new energy vehicles can help China reduce its dependence on overseas oil and ensure national energy security.On the other hand,the technology accumulation of automobile companies with strong market competitiveness is mainly concentrated in fuel vehicles,which has a small gap with China’s automobile companies in new energy vehicles.The development of new energy vehicles has become a breakthrough for Chinese automobile companies to "overtake on a curve".In order to achieve the purpose of environmental protection and international competition of automobile industry,the state has also issued a large number of policies to support the development of new energy automobile industry.However,due to the shortcomings of power technology and poor application environment of new energy vehicles,new energy vehicle projects have the characteristics of high investment cost,long investment period and unclear income,which bring great financial pressure to new energy vehicle enterprises.Therefore,it is necessary to conduct in-depth study on the financial risk of new energy automobile enterprises.Firstly,the macro-environment,development status and main financial risks faced by the new energy automobile industry are discussed.Then,the financial risks of BYD,a representative of the new energy automobile industry,are identified and evaluated.Suggestions are put forward for BYD and other new energy automobile enterprises to control their financial risks.The conclusions of financial risk analysis and control of new energy automobile enterprises are as follows:New energy automobile industry is facing excellent policy environment,better economic environment and social and cultural environment,while facing a relatively poor technological environment,with good development prospects,and has made a lot of achievements in technology accumulation and product promotion.However,due to the inherent defects of new energy vehicles,the development of the industry is still limited,which also leads to a certain degree of profit risk,operational risk and financing risk for new energy automobile enterprises.Taking BYD as a case to identify risks,the financing risk of BYD depends on the level of self-financing and debt repayment,the operational risk depends on the status of asset turnover,accounts receivable and inventory turnover,and the profitability risk depends on gross interest rate and return on net assets.These three financial risks are also related to the status of policy subsidies,BYD’s operational ability and product market competitiveness.The financial risk evaluation system of new energy vehicles is established by analytic hierarchy process.Through the quantitative evaluation of BYD’s financial risk,it is found that BYD’s financing risk and profit risk are both declining,but its operational risk is rising.In view of the financial risks faced by BYD,this paper puts forward some measures to control the financial risks,including developing diversified businesses to improve profits,maintain debt balance,expanding sources of funds with the help of capital market and reducing financial expenses,so as to deal with financing risks;adopting different inventory strategies according to different product characteristics,doing a good job of accounts receivable management to cope with the Operational risks;speeding up technology research and development and closely following the national policies to enhance the core competitiveness of products,doing a good job in cost control to increase profits,in order to deal with profit risks.