Research On Financial Strategy During The BYD Auto Transition Period

With the gradual increase of environmental pressure,the new energy vehicle industry has attracted more and more attention as a strategic emerging industry that is developing in a blowout manner.In recent years,the state’s support for new energy vehicles has become stronger and stronger,and the number of enterprises entering the industry has also increased,but the fixed market capacity has resulted in intensified competition in the industry.It is worth thinking about how traditional car companies can develop financial strategies to realize the strategic transition to new energy vehicles,so as to emerge in the industry and win in the fierce market competition.BYD in the successful transition to new energy vehicle enterprises in the process of financial management strategy for the enterprise to provide the necessary financial support,therefore,the study of financial strategy in the transition period is the study of enterprise development strategy is a very important premise.This paper mainly adopts literature research method,case study method,financial ratio and financial strategy matrix analysis method to analyze BYD’s financial strategy changes in the strategic transition period,BYD’s transition period is divided into three phases: before,during and after,and analyzes the implementation of BYD’s financial strategy in the transition period from the perspective of investment and fundraising strategy,and then analyzes the short-term financial effects of solvency,profitability and growth ability of BYD’s automobile in the transition period through the method of financial ratio analysis.Then we analyze the short-term financial effect of solvency,profitability and growth ability of BYD during the transition period through financial ratio analysis,and analyze the longterm financial effect of BYD’s value creation ability and capital status through financial strategy matrix analysis,in order to evaluate the implementation of the financial strategy,analyze the current situation that needs to be optimized in the implementation of BYD’s financial strategy during the transition period,and put forward optimization suggestions from the aspects of investment and financing.The study concludes that with the different stages of the company’s strategic transformation,BYD implements different investment strategies and financing strategies according to different overall strategic plans and combining the company’s internal and external situations,and the investment strategy creates profit points for the enterprise,and the financing strategy provides sufficient financial support for the investment strategy,which contributes to BYD’s strategic transformation.However,at the same time,there is a situation in which the investment layout needs to be perfected and the financing methods are limited,which requires timely adjustment of the financial strategy.In view of these situations,the optimization suggestions of perfecting investment structure,improving investment efficiency,expanding financing channels and adapting financing methods are put forward from the perspectives of investment strategy and financing strategy respectively.This paper studies the strategic transformation of BYD’s new energy vehicles,focusing on BYD’s vigorous development of new energy vehicles in the transition process of its capital raising,application and distribution of the process,which can provide a reference for the development of the industry or the same in the transition period of the enterprise,and the conclusions of the study can also be for BYD itself and the industry within the other car companies to provide a certain reference significance to help China’s new energy automobile industry to develop rapidly.