AutoBeta(AutoBeta.net)04/30 Report--

On the evening of April 29, BYD announced its results for the first quarter of 2024. According to the report, BYD achieved operating income of 124.94 billion yuan in the first quarter of 2024, an increase of 3.97 percent over the same period last year; net profit of 4.569 billion yuan, up 10.62 percent; non-net profit of 3.752 billion yuan, up 5.24 percent over the same period last year; and net operating cash flow of 10.2 billion yuan, down 29.3 percent from the same period last year. By the end of this report, the total assets were 677.88 billion yuan.

Judging from the latest financial results, BYD's profit growth in the first quarter was higher than that of operating income, which also means that BYD has increased its income and profits. According to the financial report, BYD's sales expenses in the first quarter were 6.804 billion yuan, an increase of 46.37 percent over the same period last year, due to an increase in advertising and exhibition fees and depreciation and amortization, while R & D expenses were 10.6 billion, an increase of 70 percent over the same period last year. This is mainly due to the increase in staff salaries and material consumption.

In addition, BYD's gross profit margin was 21.9 per cent in the first quarter, compared with 17.86 per cent in the previous quarter, up 4.02 per cent from a year earlier, while the performance was also higher than Tesla's 17.4 per cent. Looking back on the past quarter, since the year of the Dragon during the Spring Festival, BYD has shouted the slogan "electricity is lower than oil" and launched a number of cheaper "glory version" models. Among them, the prices of Qin PLUS Honor Edition and Destroyer 05 Glory Edition both start at 79800 yuan, which is reduced by 20000 yuan and 22000 yuan respectively compared with 2023 models. The launch of the two models has also pushed the price of BYD models down to less than 100000, opening up price space for subsequent new cars, and at one point will trigger a new round of price war. In the context of the price war, data show that in the first quarter, BYD's production and sales of new energy vehicles were 612300 and 626300 respectively, an increase of 7.96% and 13.44% over the same period last year. Among them, BYD sales returned to the 300000 mark in March, accounting for nearly half of the total sales in the first quarter.

To some extent, BYD did drive sales growth through the launch of the championship version and price reduction promotions. Of course, today's "price war" has become a "protracted war", and the price strategy is closely related to gross profit margin, and it has little impact on whether the price war will affect BYD's gross profit margin in the first quarter. For reference, from the first quarter to the fourth quarter of 2023, BYD's gross profit margin was 17.86%, 18.72%, 22.12% and 21.22%, respectively.

At present, in addition to the layout of the domestic market, BYD is also accelerating the layout of overseas markets. At present, BYD has entered Japan, Germany, Australia, Brazil, the United Arab Emirates and other countries and regions. In the first quarter of this year, BYD's new energy models, such as Yuan PLUS, ATTO3, Dolphin and Song PLUS EV, have entered more than 70 countries and regions on six continents, and overseas sales are also good. Data show that BYD exported 99000 vehicles in the first quarter of this year.

At present, BYD has launched four major brands, including BYD, Teng Teng, equation Leopard and look up, with product prices ranging from one million luxury to less than 100000 yuan. And 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 from January to March this year, BYD Qin PLUS New Energy, Song PLUS New Energy and Seagull ranked in the top three, with sales of 107500, 80100 and 70300 respectively, followed by Song Pro New Energy and Yuan PLUS, with 56800 and 47000 respectively.

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. This year, new cars such as BYD Song L, Sea Lion 07EV and equation Leopard 8 will be launched, followed by luxury models. It is understood that BYD will launch a number of high-end luxury models in and after 2024. As for whether BYD can attract more consumers with more new cars on the market, or become an important part of whether BYD can meet its annual sales target.

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