Impact Of Financing Structure On BYD’s Financial Performance In The Context Of Subsidy Retreat

With the promotion of government policies and market forces,China’s new energy automobile industry has made rapid progress and breakthroughs,but there are still many problems to be solved,among which shortage of funds has become one of the most important bottlenecks affecting the development of the industry.Government subsidies,an important economic tool,can help companies to alleviate the lack of capital.But with the rollback of government subsidies,subsidies will gradually fade out of the market for new energy vehicles,which is a huge test for the industry.In order to meet this challenge,enterprises should adjust their financing structure in time to meet the future development needs of the industry.Under this background,this paper analyzes the financing structure of the enterprise at present,explores whether the financing structure has a positive effect on the production and operation activities of the enterprise,and tries to explore more reasonable financing structures to provide reference for the improvement of the financial performance of new energy automobile enterprises.In order to explore the impact of the financing structure of new energy vehicles on the financial performance of enterprises in the post-subsidy period,this paper uses the combination of theory and case study to study in depth.In the case study,BYD is chosen as the main reason: BYD receives large-scale subsidies,the proportion of new energy vehicle business is also very high,and BYD is a very rare global vehicle enterprise with a whole new energy vehicle architecture,can fully demonstrate the scale and maturity of China’s new energy vehicle industry.The research contents of this paper mainly revolve around the following aspects:（1）Analyze the development of new energy automobile industry from macro level;（2）Explore the financing structure of BYD in the post-subsidy phase and compare it with the same industry;（3）Study the impact of the financing structure on financial performance through both the financial indicator method and the EVA;（4）Analyze and evaluate BYD’s current financing structure to provide a reference for optimizing the financing structure of new energy automobile enterprises.The study found that BYD alleviates excessive borrowing by increasing equity financing,and improves the short-term solvency of enterprises by increasing the ratio of long-term borrowing,thus promoting the improvement of their financial performance and enabling them to have better growth and development prospects.This reflects that the optimization of financing structure has a positive impact on enterprises,and suggests that new energy automobile enterprises should pay attention to:（1）reasonable adjustment of equity to debt ratio to reduce the debt level of enterprises;（2）Further increase the ratio of long-term debt financing to relieve short-term debt service pressure on enterprises;（3）Adopting a policy of low dividend distribution and increasing the accumulation of funds within enterprises;（4）To strengthen the management of working capital and improve the economic efficiency of enterprises.