AutoBeta(AutoBeta.net)10/29 Report--

On October 28th, BYD released its third-quarter results. According to the financial report, BYD's operating income in the third quarter of 2021 was 54.307 billion yuan, an increase of 21.98 percent over the same period last year, while the net profit of shareholders belonging to listed companies was 1.27 billion yuan, down 27.5 percent from the same period last year. In terms of R & D expenditure, BYD's R & D expenditure in the third quarter was 2.009 billion yuan, down 58.89% from the same period last year. In the first three quarters, the cumulative operating income reached 145.192 billion yuan, up 38.25 percent over the same period last year; the operating cost was 126.353 billion yuan, up 51.81 percent over the same period last year; and the net profit of shareholders belonging to and listed companies was 2.443 billion yuan, down 28.43 percent from the same period last year. BYD pointed out in the announcement that the increase in operating revenue and costs is mainly due to the increase in car and mobile phone business.

In recent years, with the rapid development of new energy vehicles in China, under this background, BYD's new energy vehicle business sector also continues to grow. According to the China Association of Automobile Manufacturers, from January to September 2021, car production and sales were 18.243 million and 18.623 million respectively, up 7.5 per cent and 8.7 per cent year-on-year. Among them, the production and sales of new energy vehicles reached 2.166 million and 2.157 million respectively, an increase of 1.8 times and 1.9 times respectively over the same period last year. According to the September car sales data released earlier by BYD, car sales in September were 79037, of which 70022 were new energy passenger vehicles, up 276.4% from a year earlier, accounting for 88.6% of BYD's total September sales. Sales of fuel vehicles were 9015, down 59.6 per cent from a year earlier. Judging from the sales figures released by BYD, the proportion of new energy vehicles owned by BYD is growing steadily, while the proportion of fuel vehicles is gradually declining.

BYD's sharp increase in new energy vehicle sales in September may be related to DM-i technology. According to relevant data, in September, 33716 DM models were sold and 36306 EV vehicles were sold. DM-i model is the main product of DM model. In January this year, BYD launched a self-developed "DM-i super plug-in" system, while announcing the pre-sale of three models, including Qin PLUS DM-i, Song PLUS DM-i and Tang DM-i, which will be officially launched in March and April this year. According to the feedback from the market, BYD is not short of orders, but after the launch of the DM-i super hybrid model, BYD car orders also rose sharply, resulting in a serious shortage of BYD DM-i. According to the plan, BYD aims to sell 400000 new energy vehicles in 2021, of which EV and DM hybrid account for half. Judging from the data, as of the end of September, BYD's total sales of new energy vehicles was 330798, and it is not difficult to meet the sales target.

When Hong Kong stocks opened on October 29th, BYD reported 303.4 yuan per share, down about 1.42%. It is not difficult to see the decline in net profit, which also caused capital worries. However, some investors said that although BYD's third-quarter net profit fell 27.5% from the same period last year, it looks bad, but it has increased by 35% from the previous quarter, while BYD's data for the second and third quarters of 2020 In 2020, much of it was the profit from selling masks, which led to a big increase in performance at that time.

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