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BYD reports 207% surge in first half earnings

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2023-08-29

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Chinese electric vehicle (EV) giant, BYD, announced a remarkable 207% increase in earnings during the first half of this year, propelled by record-breaking production and sales figures. The company's dominance in the new energy vehicle (NEV) market, including batteries and plug-in electrified vehicles, further solidified its status as China's leading auto brand.

This news holds particular significance for lithium producers worldwide, especially those in Australia, as BYD, the world's second-largest battery manufacturer, supplies batteries for all its vehicles.

Between January and June, net earnings surged to 10.95 billion yuan ($US1.50 billion), a substantial jump from the 3.6 billion yuan reported in the first half of 2022. This growth was fueled by accelerating NEV sales and the company's decision to halt production of conventionally powered vehicles.

Additionally, revenue experienced a notable increase, marking a 72.7% rise to 260.12 billion yuan ($US35.6 billion) over the six-month period.

For the second quarter, BYD reported a net profit of $US936 million, with revenue reaching $US19.2 billion— the second-highest ever recorded, following the previous year's fourth quarter surge when NEV purchase subsidies were phased out.

Comparing to the previous year's pandemic-restricted performance, the recent figures showcase a remarkable 60% year-on-year growth, with a more moderate 19% increase from the first quarter.

BYD's NEV sales for the first half of the year reached an impressive 1,255,637 units, reflecting a 95.78% surge compared to the previous year.

Specifically, the company's passenger battery electric vehicle (BEV) sales amounted to 616,810 units, displaying a substantial 90.6% year-on-year growth. Moreover, plug-in hybrid electric vehicle (PHEV) sales doubled to 631,351 units compared to the previous year.

The second quarter saw BYD break records by selling 703,561 NEVs, marking a 98.17% increase from the previous year. This included 700,244 passenger cars and 3,317 commercial vehicles, reflecting year-on-year growth rates of 98.1% and 107.2%, respectively.

In terms of specific vehicle types, BYD sold 352,163 battery electric vehicles (BEVs) during the second quarter, experiencing a 95.3% year-on-year increase and a 33% uptick from the first quarter. Plug-in hybrid vehicle (PHEV) sales reached 348,081 units, showing a year-on-year increase of 101% and a 22.9% growth from the first quarter.

While BYD had set a target of selling at least 3 million NEVs in 2023, this ambitious goal may prove challenging to achieve despite the robust first-half performance.

In a strategic move, BYD recently acquired the mobile manufacturing business of US-based contract manufacturer Jabil Inc. for 15.8 billion yuan ($US2.17 billion). This acquisition, which aligns with BYD's history of producing electronic components, reflects the company's effort to diversify its operations amid intense market competition and slowing sales growth in the automotive sector.

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