Research On The Impact Of Government Subsidies On BYD’s Financial Performance

With the development of the world economy,the contradiction between economic development and environmental protection is becoming increasingly prominent.Compared to traditional industries,the new energy industry,which is more energy-efficient and environmentally friendly,has attracted attention from many countries around the world.China regards the new energy industry as an important component of its national sustainable development strategy,while the automotive industry is a pillar industry of national industry.The new energy vehicle industry has received national attention and has broad market prospects.However,the development of the new energy vehicle industry cannot be separated from government support.Macroeconomic regulation through government subsidies can redistribute social resources,allocate resources reasonably,promote the development of new energy vehicle enterprises,and generate social benefits.Therefore,it is necessary to study the impact of government subsidies on the financial performance of new energy vehicles.By studying the financial performance of government subsidies on new energy vehicle enterprises,relevant suggestions can be provided to promote the rational development of new energy vehicle enterprises.This article selects BYD,a representative enterprise in the new energy vehicle industry,as the case study object to discuss the impact of government subsidies on the financial performance of new energy vehicle enterprises.Firstly,it analyzed the background of government subsidies,BYD’s basic development situation,as well as the reasons,scale,types,and projects for BYD to receive subsidies.Meanwhile,this article analyzes the impact of government subsidies on BYD’s financial performance and proposes that government subsidies can have an impact on BYD’s financial performance through four aspects: cash flow,pre tax profit,investment strategy,and research and development investment.It also analyzes the effectiveness of government subsidies for new energy vehicle enterprises.Finally,this article compares and analyzes the impact of government subsidies on BYD’s financial performance from four aspects: profitability,operational ability,debt paying ability,and growth ability,from both vertical and horizontal perspectives.It further analyzes the impact of government subsidies on BYD’s financial performance.This article analyzes the impact of government subsidies on BYD’s financial performance and concludes that government subsidies have a certain degree of positive impact on BYD’s current financial performance,but in the long run,they cannot improve its financial performance in the long run.Therefore,in the process of development,enterprises cannot rely solely on government subsidies for development,but should continuously improve their independent innovation capabilities,enhance their core competitiveness,and combine their development direction with national policies and economic development direction,formulating positive and effective strategies that are in line with the development of the enterprise.Finally,in response to the above conclusions,reasonable countermeasures and suggestions are proposed for enterprises,providing guidance for formulating relevant strategies for enterprises,providing relevant suggestions to the government,and helping to improve the efficiency of government subsidy utilization.