Financing Behavior And Financial Performance Of CATL Under The Background Of New Energy Vehicles Subsidies Retreat

The new energy vehicle industry is one of the seven strategic emerging industries China focuses on development.The development of new energy vehicle industry is an important way to alleviate energy pressure and improve air pollution,promote regional economic development and industrial transfer,and accelerate the upgrading of traditional automobile industry and equipment manufacturing industry.In the past 10 years,China's new energy vehicle industry has grown rapidly with the support of government policies,and the country has also begun to adopt a subsidy retreat mechanism to promote the transition of the new energy vehicle industry to marketization.In the process of the new energy vehicle industry's transition to marketization,CATL,as a leading company in the power battery industry,has adopted a more aggressive expansion strategy,while also accelerating its global strategy.This article mainly discusses what kind of financing behavior CATL has in this process,the causes and rationality of its financing behavior,and the impact of CATL's financing behavior on financial performance.The financing behavior of enterprises has always been a hot issue concerned by scholars.At present,scholars have rich research results on corporate financing behavior,but few scholars analyze the causes and rationality of corporate financing behavior from the external environment of the company and corporate strategy.This paper takes CATL as an example to conduct a case study.First,this article sorts out the literature and theories related to financing behavior.Then,this article has an in-depth understanding and analysis of the development overview of the power battery industry,the overview of CATL and the financing behavior of CATL.After that,this paper uses financial contingency theory,market timing theory and financial flexibility theory to analyze the motivation of CATL's financing behavior,and at the same time constructs a value creation growth rate matrix to analyze the rationality of CATL's financing strategy.Finally,the financial index method is used to analyze the impact of CATL's financing behavior on financial performance.The research found in this article is as follows:(1)CATL has a preference for equity financing and a tendency to over-finance.(2)CATL's financing decisions are based on the rational choices made by the company's strategy and the external environment it faces.CATL's preference for equity financing is to reduce business risks and meet the company's growing capital needs,to ensure the smooth implementation of the company's overall strategy.CATL has a tendency to over-finance,mainly to increase financial flexibility reserves and strengthen the market competitiveness of enterprises.In addition,the release of new refinancing regulations and the overestimation of stock value are also reasons for CATL's tendency to over-finance.By constructing a value creation growth rate matrix,it was found that in the post-subsidy stage,CATL had the financial characteristics of a shortage of value-added funds.Based on this,CATL's financing strategy was judged to be reasonable.(3)CATL's financing behavior has a positive impact on its financial performance.Through equity financing,CATL reversed the high debt situation and stabilized financial leverage.CATL used the raised funds to expand production capacity and increase R&D investment,gradually forming scale advantages and technological advantages,thereby improving market competitiveness,and ultimately promoting financial performance and maximizing corporate value.The research value of this article is to provide reference for other companies in the industry to make financing decisions and guide investors to correctly view the business signals released by corporate refinancing.