AutoBeta(AutoBeta.net)07/15 Report--

On July 14, BYD issued an announcement showing that in the first half of 2022, BYD realized a net profit of 2.8 billion yuan to 3.6 billion yuan during the reporting period, with a year-on-year growth of 138.59%-206.76%; net profit after deducting non-recurring profits and losses was 2.5 billion yuan-3.3 billion yuan, with a year-on-year growth of 578.11%-795.11%; basic earnings per share was 0.96 yuan/share to 1.24 yuan/share.

BYD rose 2.97 percent to HK$291.400 as of today, with a total market capitalisation of 848.3 billion yuan.

On April 27, BYD released its first-quarter financial report showing that in the first quarter of 2022, it realized operating income of 66.83 billion yuan, with a year-on-year growth of 63.02%; net profit attributable to shareholders of listed companies was 808 million yuan, with a year-on-year growth of 240.59%. Based on this calculation, BYD's second-quarter profit was about 1.992 billion yuan-2.492 billion yuan, up about 113% to 166% year-on-year.

In the first half of this year, due to the epidemic, chip shortage and raw material prices continue to rise and many other factors, the overall auto market suffered a serious impact, affected by this, some of the traditional car companies that have been announced have also experienced a decline in performance or even losses, but BYD has become a "standout" and still achieves growth. According to BYD's 2021 financial report, BYD realized operating income of 216.142 billion yuan in 2021, with a year-on-year growth of 38.02%; net profit attributable to shareholders of listed companies was 3.045 billion yuan, down 28.08% year-on-year. In other words, BYD's net profit in the first half of this year is likely to exceed that of the whole of last year. BYD said: "The Group's sales volume of new energy vehicles grew strongly, hitting record highs repeatedly, market share was far ahead, achieving rapid growth year-on-year, driving significant improvement in profits and hedging the profit pressure brought by upstream raw material prices to a certain extent."

In terms of new vehicle delivery, the latest data shows that in the first half of 2022, BYD's cumulative sales volume was 641350 vehicles, up 314.90% year-on-year, and the sales volume of new energy passenger vehicles was 638157 vehicles, up 324.84% year-on-year. So far, if BYD conservatively expects sales of 1.5 million vehicles in 2022, BYD has achieved 42.5% of its annual sales target of 1.5 million vehicles as of June. By contrast, BYD's cumulative sales volume in 2021 was 740,100 vehicles.

On April 3 this year, BYD took the lead in announcing its withdrawal from the fuel car market and focused on pure electric and plug-in hybrid vehicles in the future, becoming the first traditional car company in the world to announce the cessation of fuel car production. In response to the reasons for stopping fuel vehicles, BYD Board Secretary Li Qian explained in detail: "On the one hand, because BYD is the global leader in new energy vehicles, BYD feels that it is time to concentrate on developing electric vehicles to lead the industry to a new level." The second reason is that BYD electric vehicles are completely in short supply, our production capacity is not enough, we have to free up the production capacity of fuel vehicles for electric vehicles, so cutting down fuel vehicles should be a very important strategic decision of the company, and it will be very helpful to the company in the short term, medium term and long term."

Sales of new energy vehicles soared in the second quarter after BYD withdrew from the oil car market, selling more than 100,000 vehicles for four consecutive months since March. The automobile industry is concerned that, for BYD, the suspension of fuel vehicles is not only in line with the market development, but also the inevitable trend of BYD automobile plate transformation. Compared with fuel vehicles, BYD new energy vehicles continue to sell well in the market, and the problem of "no car" continues to plague car buyers.

In March of this year, BYD disclosed data showing that there were as many as 400,000 undelivered orders at that time and that they continued to increase each month. On May 30, BYD board secretary Li Qian said when participating in CCTV financial "financial interview" program, BYD is still in short supply, more than 500,000 orders in hand, delivery cycle in 4-6 months, and pointed out that if it is not the impact of the epidemic sales may be better, as for this year's annual sales target mainly depends on the quality of the supply chain. On today's investor interaction platform, BYD said that the order delivery cycle is affected by many factors such as scheduling planning, accumulated user orders of different models/regions, etc., and sometimes there will be large differences. At present, we are actively climbing production and making every effort to improve the delivery of the company.

At present, BYD's products on sale can be divided into two series: Dynasty and Ocean, among which Dynasty series products on sale include Qin, Tang, Song, Yuan and Han, Ocean series products on sale include Dolphin, Destroyer 05 and other models, and the product price covers the range of 100,000 - 300,000 yuan. According to the current orders, BYD's undelivered orders have been increasing instead of decreasing. In this way, it is not difficult for BYD to achieve the conservative target of 1.5 million vehicles in 2022, and there is great hope to impact the target of 2 million vehicles.

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