AutoBeta(AutoBeta.net)03/27 Report--

On March 26, BYD announced its financial results for 2023. According to the report, BYD achieved operating income of 602.315 billion yuan in 2023, an increase of 42.04 percent over the same period last year. Of this total, revenue from automobiles and related products was 483.453 billion yuan, up 48.9 percent, accounting for 80.27 percent of total revenue; net profit was 30.041 billion yuan, up 80.72 percent; and non-net profit was 28.462 billion yuan, an increase of 82.01 percent over the same period last year. By the end of 2023, the total assets were 679.548 billion yuan, an increase of 37.6% over the same period last year.

BYD's sharp increase in profits is related to its strong performance in the car market. Official figures show that BYD sold 3.0244 million vehicles in 2023, an increase of 67.79% over the same period last year, successfully achieving its annual sales target of 3 million vehicles. Of these, the sales of pure electric vehicles were 1.5748 million, up 72.84% from the same period last year, and the sales of plug-in hybrid models were 1.4381 million, up 51.98% from the same period last year.

Data show that BYD's gross profit margin of cars and related products in 2023 is 23.02%, higher than Tesla's 18.2%, but also higher than the ideal car's 22.2%. Looking back on the past year, at the beginning of 2023, Tesla was the first to start a price reduction. Domestic Model 3 reached a record low after a sharp price reduction, which led to an increase in sales, but the price reduction promotion also led to a decline in Tesla's gross profit margin. In the process, BYD led sales growth by launching a championship version, and with the sharp improvement of scale effect and supply chain management, car gross profit margin increased to 23.02%.

In February 2023, BYD Qin PLUS DM-i Champion Edition went on sale, with a starting price of 99800 yuan directly challenging Nissan Xuanyi, Volkswagen Longyi and other best-selling compact fuel vehicles. Since then, it has launched a number of models, such as Han Champion version, Tang DM-i Champion Edition, Destroyer 05 Champion Edition, Seal Champion Edition, Song ProDM-i Champion Edition and so on. The decline in model prices has also become the key to the steady growth of BYD sales. In addition, BYD also launched the look up and equation Leopard brands, but since new cars from both brands will not be delivered until the end of the third quarter of 2023, the proportion of sales will not have a significant impact on total sales in 2023.

Up to now, BYD's total layout of dynasty net, ocean net, momentum, look up and equation leopard brand, product prices up to millions of luxury, down to the level of 100000 yuan. At present, dynasty net and ocean net are the main selling products of BYD, in which dynasty net occupies most of the market share, and a number of products dominate in the passenger car market segment. Retail data show that BYD Qin PLUS New Energy, Song PLUS New Energy and Yuan PLUS ranked in the top three in 2023, with sales of 434000, 390000 and 310000 respectively, with a total of 1.134 million models, accounting for 41.9% of BYD's total car sales.

In addition, BYD is continuing to expand overseas markets. At present, BYD has entered Japan, Germany, Australia, Brazil, the United Arab Emirates and other countries and regions, and overseas sales also have a good performance in 2023. According to the data, BYD sold 243000 new energy passenger vehicles overseas in 2023, an increase of 334.2 percent over the same period last year, making it the top selling brand of new energy in many countries. This also makes the revenue of BYD's overseas business reach 160.22 billion yuan in 2023, an increase of 75.2 percent over the same period last year. The growth rate is much higher than 32.9% of domestic business.

According to the Soochow Securities Research report, BYD actively promoted the layout of overseas markets, and overseas markets contributed to the growth of sales. 2024-2025 is the year of products, and sales are expected to be about 4 million and 5 million respectively, up 33% and 25% respectively from the same period last year. Industry insiders predict that the subsequent overseas market may also become a new growth point for BYD.

Since the beginning of the year of the Dragon during the Spring Festival in 2024, BYD has shouted the slogan "electricity is lower than oil", launched a number of cheaper "glory version" models, and adopted a price reduction strategy to further reduce the price space in the A0 market. Among them, the prices of Qin PLUS Honor version and Destroyer 05 Glory version both start at 79800 yuan, which is 20000 yuan and 22000 yuan lower than 2023 models, respectively. The listing of the two models will also push the price of BYD models down to less than 100000. "Automotive Industry concern" believes that the listing of a number of "glory version" models may help BYD seize the traditional fuel vehicle market. In addition, BYD will also launch luxury models in the future. It is understood that BYD will launch a number of high-end luxury models in and after 2024.

According to the plan, BYD has set a target of 45-5 million vehicles in 2024, 150-2 million more than the target of 3 million in 2023. However, the car market in 2024 is different from that in 2023, and the competition in the new energy market will become fiercer this year. Whether BYD's launch of more new cars can attract more consumers or become an important part of BYD's ability to meet its annual sales target.

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