AutoBeta(AutoBeta.net)04/22 Report--

On April 22, BYD released its 2019 results. According to the financial report, BYD's operating income for the whole of 2019 was 127.739 billion yuan, down 1.78% from the same period last year; the net profit of shareholders belonging to listed companies was 1.614 billion yuan, down 41.93% from the same period last year. This is BYD's lowest net profit in the past five years, with net profits of 2.8 billion yuan, 5 billion yuan, 4.1 billion yuan and 2.8 billion yuan from 2015 to 2018.

BYD is mainly engaged in three major businesses, including automotive business, including new energy vehicles and traditional fuel vehicles, mobile phone components and assembly business, rechargeable battery and photovoltaic business, that is to say, the above data are made up of three major businesses. The decline in BYD's revenue is mainly due to the malaise of the auto business.

Specifically, revenue from rechargeable batteries and photovoltaic business increased by 17.38% to 10.506 billion yuan compared with the same period last year, while revenue from mobile phone components and assembly business increased by 26.40% to 53.38 billion yuan, while revenue from automobile and related products fell 16.76% to 63.266 billion yuan from the same period last year. The three major businesses accounted for 8.22%, 41.79% and 49.53% of the group's total revenue, respectively. BYD said that the decline in subsidy policy and the early replacement of national six standards in some areas are important factors in the decline in the group's automotive business, especially the production and sales of new energy vehicles.

2019 is an extremely difficult year for China's auto market. Due to the increasing decline of new energy subsidies and the early implementation of the sixth national standard in some cities, the sales of new energy vehicles in China are negative for the first time. BYD, as the domestic leader of new energy vehicles, the decline in sales of new energy vehicles led to a year-on-year decline in new energy vehicle business revenue of 23.41% to 40.145 billion yuan. BYD's car sales fell 11.39 per cent year-on-year to 461399 in 2019, according to the data. Of these, total sales of new energy vehicles fell 7.39 per cent year-on-year to 229506, while fuel vehicle sales fell 15.02 per cent to 231893.

Of course, we can't deny BYD's efforts in the automotive field. In 2019, BYD launched a new generation of Tang EV, new Song MAX plug-in hybrid vehicles and other models. In addition, BYD has also launched e-series models such as E1, e2 and E3.

In 2020, BYD has not relaxed at all. These include the establishment of a Fudi company, the smooth landing of a joint venture with Toyota, the launch of a new model, the BYD Han, and blade batteries. It is understood that BYD's first blade battery is expected to bring a cost reduction of about 10,000 yuan. The battery, which is first launched with BYD EV, will go on sale around June this year. BYD hopes that Han models will become a new engine for passenger car business growth.

However, the 2020 epidemic had a significant impact on BYD, with factory shutdowns and dealer suspensions leading to a sharp decline in BYD's car sales, which had a significant impact on BYD in the first quarter. According to BYD's previous announcement, cumulative sales in the first quarter of 2020 fell 47.9% from a year earlier to 61273 vehicles. The company expects a profit of 50 million to 150 million yuan in the first quarter, compared with a profit of 749.73 million yuan in the same period last year, down 79.99% from a year earlier. 93.33%. As for the reasons for the sharp decline in performance, BYD said that the COVID-19 epidemic and macroeconomic downturn had a greater impact on the overall market demand of the automotive industry, and the company's sales of new energy vehicles declined significantly compared with the same period last year. In terms of traditional fuel vehicles, with the continued hot sales of Song Pro, the declining pressure on the sales of fuel vehicles has been alleviated to a certain extent.

Compared with Geely, Great Wall, GAC GROUP and other car companies, BYD's performance is not excellent, mainly because the decline in sales of new energy vehicles led to lower-than-expected revenue and profits. However, with the continuous introduction of policies to encourage car consumption, coupled with the extension of subsidies and tax exemption for the purchase of new energy vehicles, BYD's sales of new energy vehicles are expected to improve. But even so, there is no guarantee that the epidemic will fluctuate significantly compared to YD's performance in 2020.

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