Study On The Impact Of Government Subsidy On Financial Performance Of New Energy Automobile Enterprises In China

Under the new situation of high quality economic development,the development of automobile manufacturing industry in China is highly valued by the state.The transformation and development of industry are closely related to the guidance of government macro policies.The state provides government subsidies for macro-control of market economy,promotion of industrial development,and enterprises,which can not only achieve the purpose of intervening in the economy,but also play a great role in promoting industrial development.China’s new energy sales of new energy vehicles are leading the world,a major achievement thanks to the implementation of government subsidies.However,from the perspective of the new energy automobile industry as a whole,some enterprises have a fluke mentality and have a strong dependence on the payment of government subsidies.Under the evolution of the policy,enterprises make use of policy loopholes and "cheat" events frequently.Lack of motivation for their own development.This behavior not only damages the reputation of enterprises,reduces consumer confidence,but also makes the national financial resources suffer losses.So in recent years,in view of this phenomenon,the government gradually raises the subsidy threshold,reduces the subsidy scale,forces the enterprise to innovate unceasingly,enhances the market competitiveness.The writing type of this paper is case analysis.The case enterprises choose BYD Company,which continues to receive huge government subsidies and far exceeds the industry average as the research object.First of all,it introduces the background of BYD’s new energy automobile industry and the current situation of government subsidy.Secondly,it summarizes the reasons,types and scale of the BYD has received over the years.Finally,the data envelopment analysis method is used to analyze its financial performance comprehensively,and the influence of government subsidy on the short-term and long-term financial performance of BYD is analyzed by ratio and comparative analysis method.The following conclusions were drawn from the analysis: R & D personnel account for more than 12% of the employees of the enterprise government subsidy utilization efficiency is high;Government subsidies increased BYD’s current cash flow;From the analysis of profitability and solvency,it is known that government subsidies have a positive impact on it,from the short-term debt service and long-term debt service risk analysis,the risk is higher;BYD’s operating capacity is lower than the industry average and should be continuously improved;government subsidies can promote the level of development capacity.