Research On The Impact Of R&D Investment On Financial Performance In CATL

The new energy vehicle industry has received strong support from the state and has developed rapidly,while the power battery industry has supplied core components to new energy vehicles and has grown rapidly.However,in 2017,government subsidies for new energy vehicles began to decline and accelerated in 2019.The decline will have a great impact on the power battery industry.Those companies that rely only on government subsidies to maintain their own profitability will become poorly managed or even go bankrupt.Technological innovation is an important source of a company’s competitiveness and vitality,and improving an enterprise’s independent innovation is inseparable from R&D expenditures.As a market entity,the primary pursuit of an enterprise should be maximizing economic benefits.How to survive and develop in the context of subsidy decline,it is necessary to study how successful companies’ R&D investment affects and maintains corporate financial performance.This paper takes CATL,a leading enterprise in my country’s new energy vehicle power battery industry,as a case study sample,in order to shape the "model effect".Combining the domestic and foreign research results on the two,using the case study method and the combination of quantitative and qualitative methods,the research on this content is enriched from the theory and transmission mechanism,and the theory of technological innovation,signal transmission and enterprise competitive advantage Theory is used to study the content.Explore the impact of R&D investment on corporate financial performance,and propose that the use of R&D investment can increase the company’s market share by enhancing the company’s independent innovation and management level,improving production efficiency and quality,and promoting the company’s overall profitability,operation,and debt repayment,development and other ability level improvement.And according to the comparative analysis of the actual development of CATL and the average level in the industry,the previous mechanism analysis is verified.Through the detailed collection and analysis of the company’s annual report and the company’s official website information and data,the successful experience of CATL in R&D investment is summarized,so as to provide reference for small and medium-sized enterprises in the industry and other industries.The research results show that: 12 financial indicators are dimensionally reduced under the factor analysis method,and four ability factors after reorganization are obtained,and they are scored.Have a significant positive effect.The analysis of the specific financial data indicators of CATL shows that R&D investment can indeed promote the improvement of financial performance.There are two main findings in this case study.First,CATL has a perfect R&D business process and internal control system,and pays attention to the research on R&D innovation.Second,CATL’s core technology R&D investment has a significant positive impact on corporate financial performance.Industry SMEs and other industries should combine their own actual conditions and increase corporate R&D investment to carry out continuous innovation,improve the incentive mechanism for R&D personnel to increase employee motivation,and build a vertically integrated R&D system to ensure stability.