BYD 2019 net profit of 1.612 billion yuan

March 31, BYD car released 2019 annual results snapshot shows that BYD 2019 total operating income of about 127.739 billion yuan, down 1.78% compared with the same period last year, attributable to shareholders of listed companies net profit of about 1.612 billion yuan, a year-on-year decline of 42.03%. BYD said the year-on-year decline in net profit was mainly due to changes in the industry and policy and the impact of rising research and development costs during the period.

Interpretation: in July 2019, the new energy automobile market ushered in a substantial retreat of subsidies, and for the first time, the industry experienced a significant year-on-year decline in production and sales. Throughout 2019, China's new energy vehicle production and sales were completed at 1,242,000 and 1,206,000 respectively, down 2.3% and 4.0% year-on-year. Among them, the new energy passenger car wholesale 1.060 million units, an increase of 5.1% year-on-year.

In 2019, BYD's auto sales were 461,000 units, down 11.39% year-on-year, of which 232,000 units of fuel vehicles were sold, down 15.02% year-on-year, and 229,000 units of new energy vehicles were sold, down 7.39% year-on-year. Completion of 70.98% of the 2019 sales target of 650,000 units.

BYD's new energy vehicles accounted for 49.7% of its overall sales, and its new energy vehicle sales have maintained a leading position in the country. Therefore, the impact of the subsidy slump on BYD is also particularly strong.

In addition, overall sales of fuel vehicles have also suffered as a result of the early switch to the National Six standard in some areas last year.

BYD's 2019 results flash report said that the reason for the decline in net profit, in addition to changes in the industry and policy, the rise in research and development costs is another important reason. However, the exact figure is not known as BYD has not yet released its earnings report.

March 29, 2020, BYD officially released the "blade battery" ? and will be carried for the first time in the Han EV model, which will go on sale in the middle of the year. According to Wang Chuanfu, the cost of blade batteries is expected to drop by 20-30%, and is also seen as a major driver of BYD's future earnings growth.

At present, BYD has already made its battery business independent, setting up Fudi Battery Co. Ltd. and blade batteries will be fully externalized, said He Long, chairman of Fudi Battery, adding that several automotive brands are now exploring cooperation options based on blade batteries with Fudi.

In addition, BYD and Toyota's joint venture was formally established on March 25, the two sides will jointly develop pure electric vehicles, the development of models including pure electric sedans and low-floor pure electric SUVs.

Currently, BYD is expanding the new business model, the depth of the future cooperation with more car companies will largely improve its operating revenue and profitability.

This article was written by the author of Automotive Home, and does not represent the views of Automotive Home.