Research On The Impact Of Government Subsidies On The Operating Performance Of Companies In The New Energy Industry

With the policy support for the development of the new energy industry,China’s new energy industry has developed rapidly since 2011.This is mainly due to the strong support of the government,which provides a good platform for enterprises,especially the government’s important influence on new energy enterprise subsidies.The New Energy Industry Revitalization and Development Plan(2009-2020),the Energy Conservation and New Energy Vehicle Industry Development Plan(2012-2020),and the Notice on Continuing the Promotion and Application of New Energy Vehicles have promoted the transformation and upgrading of the new energy industry.With the rapid development of the new energy industry,step by step,targeted and gradual reduction of subsidies is also the inevitable result,the government’s subsidy policy for the new energy vehicle industry also adopts a subsidy regression mechanism with the development of the industry.This paper analyses the mechanism of the impact of government subsidies on the business performance of enterprises by examining the government subsidy policies promulgated in China’s new energy industry and sorting out the relevant literature on government subsidies,government subsidies and corporate R&D investment,and government subsidies and corporate business performance.Firstly,CATL,a midstream power battery company in the new energy industry,is selected as a typical representative to analyse the development of CATL since its establishment.Secondly,by analyzing and revealing the impact of government subsidies on the operating efficiency,changes in R&D activities and financial indicators of the enterprise,the thesis argues and draws the following three assertions: First,the enterprise’s use of government subsidies is less efficient and has more room for improvement,and blindly increasing investment and expanding scale will cause a decline in operating performance.This proves from the side that the scale,input and output of some new energy enterprises are inconsistent,with low scale efficiency and performance to be improved being the main reasons for the low efficiency of the industry’s overall operating performance;second,government subsidies affect financial indicators such as operating income and net profit in the financial statements by directly increasing CATL cash flow,which improves the enterprise’s operating performance;third,making full use of government subsidy policies,increasing CATL R&D investment and adjusting its investment strategy to promote technological advancement can enhance the business operation and increase the business performance of the enterprise.At the same time,government subsidies can alleviate the cost pressure faced by CATL in its initial development and growth stages due to the capital required for the expansion of the enterprise and the increase of new product research and development,ensure sufficient and stable capital flow within the enterprise for new technology research and development and market development,add vitality to the future development of the enterprise and provide security for the business development of the enterprise.In addition,although government subsidies can improve a company’s business performance by enabling it to obtain research and development results,reduce its costs and improve its performance in the short term,it is important that companies do not rely too heavily on government subsidies.Against the backdrop of diminishing state subsidies,enterprises need to enhance their own internal dynamics and focus on improving their business and competitive advantages in accordance with relevant state policies and market demand in order to achieve long-term development.