Evaluation And Improvement Suggestions Of Financing Efficiency Of New Energy Vehcle Enterprises

New energy vehicles have a significant market position and a wide range of development prospects in China due to their benefits in energy conservation and emission reduction.However,because the new energy vehicle industry is a new,high-tech one,it necessitates a significant amount of capital to support R&D and innovation.Additionally,because the new energy vehicle sector has a protracted capital recovery cycle,stable capital is essential to the growth of businesses.However,compared to traditional large car enterprises,China’s new energy vehicle enterprises are relatively small in scale and lack sufficient capital reserves,so the government provides substantial financial support for them in the early stage of industry development.Additionally,as the market for new energy vehicles continues to mature,in order to control how the sector develops,China’s government subsidies for businesses involved in new energy vehicles are also declining annually.,which causes the financing and operating costs of new energy vehicle businesses to significantly increase.At the same time,the majority of businesses in the industry are in the start-up or growth stage,which makes it challenging for the efficiency of capital used to achieve an efficient state due to elements like managerial expertise and risk management prowess.Hence,a key challenge for the growth of new energy vehicle firms is how to increase the effectiveness of funding.In this context,this paper selects the leading new energy vehicle company,NIO,as a case study,and analyzes the financing efficiency of the case company to pinpoint the problems of its financing efficiency and offer specific suggestions.At the same time,it gives inspirational suggestions to enterprises in the same industry of new energy vehicles,hoping it will enhance the new energy vehicle sector’s funding effectiveness and support the sector’s healthy growth.The first part of this paper evaluates the local and foreign literature on three aspects:financing efficiency,financing efficiency research techniques,and financing of new energy vehicle firms,so as to clarify the research objects and research methods.Secondly,this paper examines the capital integration and capital use of NIO in light of the market conditions for new energy vehicles,based on the notion of financing efficiency and the MM theory,trade-off theory,and optimal order finance theory.The financing effectiveness of NIO is then analyzed and evaluated using the DEA method,based on data from 2018-2021,using a reference set of 21 listed businesses in the market for new energy vehicles.Finally,by combining the findings from the aforementioned research,the paper analyzes and summarizes the issues with NIO’s current financing efficiency,makes recommendations to fix them appropriately,and offers guidance for other businesses in China’s new energy vehicle industry on how to enhance their financing efficiency.This paper finds that:from the perspective of capital integration,NIO has strong external financing ability,diversified corporate financing methods and good financing,but the company relies too much on external financing and lacks endogenous financing channels.From a capital usage perspective,NIO’s profitability has been improving year by year,but is not good overall,and the company’s high marketing costs are the reason why its net profit has continually been negative.In addition,NIO’s total assets are too large,the business is expanding too quickly and does not carry expected earnings in the future.NIO’s financing is less effective than that of other businesses in the same sector,according to a review of overall financing efficiency.In particular,in terms of pure technical efficiency,NIO is over-invested in total assets and has insufficient output in terms of return on net assets,and the company’s own operation management level and financing structure need to be improved,especially in terms of profit generation.As for the analysis of financing efficiency dynamics,the progress of NIO’s financing efficiency during 2018-2021 because of raising the level of production technologies,but it needs to focus on strengthening in terms of scale efficiency.Therefore,in response to the above research,this paper makes the following recommendations for NIO:(1)Enhance endogenous financing and optimize the financing structure;(2)Reduce marketing expenses and improve profitability;(3)Adjust the scale of the enterprise and control the expansion rate.At the same time,based on the results of the NIO case study,the following suggestions are made for new energy vehicle enterprises to improve financing efficiency:(1)Broaden enterprise financing channels;(2)Allocate funds reasonably and efficiently;(3)Control enterprise scale reasonably;(4)Improve enterprise technology.