Reasons and Effects of Strategic Investors in the New Energy Industry: A Case Study of Chengxin Lithium
DOI:
https://doi.org/10.54097/zm8z8580Keywords:
strategic investor, Lithium industry, market reflection.Abstract
In recent years, global technology upgrades and the transformation of economic development have promoted the rapid growth of the New Energy Lithium battery industry. The New Energy Lithium battery industry has become a highly anticipated and popular industry. This paper takes Chengxin Lithium Group Co., Ltd. (Chengxin Lithium), introducing BYD as a strategic investor, as an example to analyze the reasons for new energy enterprises to introduce strategic investors and their impacts on the enterprise. In this paper, this study adopts the event study, the EVA method, and the case study to conduct research. The study finds that introducing strategic investors can optimize enterprises’ capital structure, alleviate financial pressure, and enhance capacity expansion. Future research can be expanded to more Lithium battery enterprise cases, compared to the long-term performance difference in different integrated modes, and provide a reference for industrial strategic investors. Hereby, this will help the healthy and stable development of this industry.
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