The Impact Of Government Subsidies On The Performance Of CATL Company

There are many forms of government subsidies,such as R＆D subsidies,tax returns and gifts of fixed assets.Most of the government subsidies to enterprises are for the purpose of industry support.First,large-scale subsidies are given to cultivate a number of outstanding leading enterprises,and then slowly withdraw from the market.However,scholars have been exploring and thinking about whether the government’s single amount subsidy and sustained special policies can really achieve the initial purpose and what effect they will have on enterprises.Some scholars deduce that government subsidies will significantly improve enterprise performance,and there will be opposition accordingly.So far,there is no final conclusion.Nowadays,due to the frequent occurrence of climate anomalies and disasters caused by the deterioration of the ecological environment,mankind has realized that the intensity of environmental protection is not enough,and efforts need to be made to improve the environment from many aspects and angles.China’s new energy vehicle market has been occupied by foreign enterprises at first,now controlled by domestic enterprises,and then started revolutionary changes in the field of power batteries,striving for the goal of zero carbon and zero pollution.It has higher and higher requirements for itself and has been affirmed by the world.Therefore,starting with power battery enterprises,this paper studies the impact of government subsidies on enterprise performance.This paper selects CATL,the leading enterprise in the domestic market,as the case object,mainly from the perspective of non-financial performance and financial performance.Based on the data from 2015 to 2020,in the part of non-financial performance,this paper analyzes the role of subsidies in promoting enterprise R＆D capital investment,patent output and the number of scientific and technological talents;In the financial performance part,using the enterprise life cycle theory,the above market time of the case company is divided into two stages: start-up stage and growth stage to study the impact of government subsidies on the financial performance of enterprises in different periods.This paper finds that the sustainability of government subsidies can lead to the increase of R＆D investment and the output of more R＆D achievements.CATL adopts scientific strategic planning,seizes self-interest policies and rare development opportunities,and uses the help of government subsidies to improve the innovation performance of enterprises.However,the positive impact of subsidies is short-lived,and its effect on operating capacity and solvency is not obvious.It is more about the improvement of current performance.Enterprises should rely on their own strength and adhere to innovation driven development in order to go further.Finally,in order to meet the key for enterprises to make efficient use of subsidy resources and achieve the purpose of the government,the paper puts forward two suggestions for enterprises and the government.