Study On Financial Risk Control Of BYD Joint Stock Limited Company

Compared with developed countries in the world,China's automobile industry which has a short history,but develops rapidly.The automobile industry has become the mainstay of China's manufacturing industry and has a decisive impact on the national economy.Along with the economic development of resources,environment problem is becoming more and more serious,energy conservation and emission reduction,green travel has gradually become the mainstream,a new round of technological revolution is sweeping the globe,in such circumstances,the traditional automobile manufacturing industry to low carbon,electric,intelligent transformation and upgrading has been the trend of The Times,the new energy automotive industry began to rise.The Chinese government has also provided strong support for the new energy vehicle industry.The parallel management method of average fuel consumption of passenger car enterprises and new energy vehicle points was successfully implemented in 2017.The release of the dual-point system promoted the structural reform of the automobile industry and provided a guarantee for the development of the new energy industry,which is of milestone significance.But there must be a big challenge in front of the big opportunities,external aspect,the overseas each big automobile manufacturer in the domestic market,the domestic car brand formed a larger impact,while at the same time the double point of landing will promote the development of new energy automotive industry,but in recent years the government subsidies on new energy automobile industry policy tightening: subsidies reduce trend obviously,and reduce the discount,such as tax,affects obviously the most enterprises to rely on government subsidies.Internally,new energy vehicle enterprises have high technical requirements,large investment in research and development,uncertain profit prospects,and rising financial risks.In the current environment of "external worries and internal troubles",only by strengthening risk awareness and improving operation and management can new energy automobile enterprises remain invincible in the fierce industry competition,thus promoting the development of China's economy.As the leader of China's new energy automobile industry,BYD company,its financial risk analysis and research are helpful to understand and predict the current situation and future of the enterprise and even the industry.This paper is divided into six parts.In the first part,the research background,significance,content and methods of this paper are briefly introduced.The second part lists the theoretical basis and related basic concepts used in this paper.The third part introduces the general situation of BYD company and its basic financial information,including its debt paying,operation and profitability.The fourth part is the main chapter of the paper,which identifies and analyzes the specific financial risks of BYD company.The fifth part puts forward the corresponding risk control Suggestions aiming at the financial risk of the company.In the last chapter,the above research conclusions are summarized and the research prospect is put forward aiming at the deficiencies.It is hoped that the proposed Suggestions can play a certain role in controlling financial risks of BYD company.At the same time,it is also hoped to provide beneficial references for other enterprises in the same industry on similar issues.