Study On Financial Risks Management Of New Energy Vehicle Enterprises

Under the inspiration national"14th Five-Year" strategic plan and the policy of vigorously developing the new energy industry,China’s new energy vehicle industry has developed vitally.The rapid development of new energy vehicles has driven the transformation of China’s automobile manufacturing industry from the traditional automobile industry to the electric vehicle industry,which represents the future development direction of China.Developing new energy vehicles is also going to reducing China’s dependence on overseas traditional petroleum energy and ensuring national energy security.After years of accumulation of technology,the core competitiveness of the world’s car companies are mainly concentrated in the field of fuel vehicles.What is more,their brands power and competitiveness are so far-ahead.China’s new energy vehicles industry started early,and the gap of manufacturing and fuel technology between western is small.Therefore,developing new energy vehicles has become a breakthrough for China’s automobile manufacturing industry to "curve overtaking".At the same time,the state has also issued a large number of policies and regulations to support the development of the new energy vehicle industry,which also can be considered as to achieve the strategic goals of environmental protection and carbon neutrality.However,there are natural technical defects of new energy vehicles.For instance,the insufficient battery life,complicated application environment requirements,and unreliable battery safety.These defects determine that the development of new energy vehicles is going to face a large amount of investment in research and development,but receiving risks of long investment return cycle,high market risk and unclear returns.These problems and risks cannot be ignored by new energy vehicle companies,otherwise it will bring great financial pressure and financial risks to the company.Based on the above reasons,it is necessary to study the financial risks faced by the new energy vehicle industry and carry out financial risk management advice for enterprises scientifically.This paper first analyzes the domestic environment for the development of the new energy vehicle industry,mainly discusses the political environment,economic environment,social environment and technical environment.The paper also discusses the state’s subsidies for the new energy vehicle industry.By comparing the financial indicators of new energy auto companies represented by BYD and other auto companies represented by Geely Auto and Changan Auto,the paper identifies and analyzes the financial risks faced by BYD Auto.Finally,this paper puts forward control suggestions on B YD’s financial risk management.The conclusions about the financial risk management and control of the new energy vehicle industry represented by BYD are as follows:New energy vehicles face an excellent formal environment,economic environment and social environment.support.However,there are still some technical deficiencies and problems that have not been solved,which could e restrict the development of the entire new energy vehicle industry.Taking BYD Auto as an example,its financing risk comes from its own financing level and solvency;its investing risks are highly related to the field that BYD is investing;operational risk depends on asset turnover,inventory turnover,and accounts receivable turnover;profitability risk is related to gross profit margin and net assets.There is a positive correlation between returns.Establishing AHP model to calculate the weight of each risk occupies,then put the past five years financial data of BYD in to feature scaling.By multiplying the results of feature scaling data and AHP weight,the paper gets the results of BYD’s financial risk data in the past five years.The data shows that BYD Auto has gradually decreased in financing risk and profit risk,but the investing risks and operating risk are relatively at a high level.In view of the above risks,this paper puts forward control suggestions for BYD’s financial risk management,including diversifying business development,expanding capital sources,and accelerating technology research and development upgrades to control financial risks.