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

Under the current social theme of resource-saving and ecological environmental protection,the development of new energy green industry is an inevitable trend.However,traditional automobile industry in our country is very unfriendly to environmental protection,and automobile exhaust caused harm to the environment.To this end,the government issued purchase restrictions,odd-even license plate restrictions and other policies,to a certain extent,the traditional car sales caused an impact.As consumers pay more and more attention to science and technology and environmental protection,coupled with the government’s strong support for low-carbon,environmental protection and green travel,under this background,new energy vehicles respond to the development trend of The Times,and develop rapidly.Not only more and more new energy vehicle brands emerge,but also the old traditional vehicles have joined this emerging market.New energy vehicle is a brand new product,which breaks consumers’ cognition of traditional cars and develops much faster than traditional cars.As an emerging thing,it constantly occupies market share and has great development potential.In addition,the government has adopted policies to help the consumption and manufacturing of new energy vehicles,which has enabled the rapid development of new energy vehicles.At the same time,government subsidies also have a greater impact on the financial performance of new energy vehicles.The main reason is that the government can improve the core competitiveness of enterprises,stimulate the confidence of enterprises,and promote the healthy and rapid development of the new energy industry through its support.In recent years,in the new energy automobile industry,BYD has become the leader of the domestic new energy automobile industry by virtue of its own strength and technology.In terms of new energy automobile sales,BYD has won the favor of the majority of consumers.By virtue of its own research and development and innovation advantages,BYD has occupied most of the market of new energy automobiles.This company relies heavily on government subsidies for new energy.Up to now,this company has enjoyed billions of government subsidies.Can high government subsidies promote the stable development of this company?What impact does it have on the financial performance of the enterprise? If the company is too dependent on government subsidies,will it be able to continue operating once those subsidies are phased out?This paper analyzes the financial performance of BYD Company from four aspects:profit level,asset quality,debt risk and business growth.It combines the changes of state subsidy policy in recent years with the operation of BYD new energy vehicle company,analyzes the financial data from 2013 to 2021 by using SPSS software,and integrates a single financial index.Obtain comprehensive performance indicators to evaluate the financial performance of BYD company.This paper makes an empirical study of these data,and finds that the continuous investment of government subsidies has a positive impact on the financial performance of the company,and analyzes the correlation between government subsidies and the four conditions.As a result,it is found that with the gradual decline of government subsidies,BYD is facing a series of challenges in the process of development.Finally,in view of the above risks and challenges,relevant countermeasures are given.