BYD Auto's turnover rises 64% to $3.02 billion in 2007

Shanghai, April 3 (Gasgoo.com) A recent report on the annual achievement of the BYD stock (1211.HK) indicates that by the end of December 2007, BYD Auto's turnover had risen by 63.9% to RMB 21.211 billion ($3.02 billion) and the net profit had also risen by 44.2% to RMB 1.612 billion. The net profit of its automobile business is about RMB 257 million, up 122% over last year.

On March 25, the BYD stock rose by 10% to 13.92 HK dollars thanks to the carmaker’s good achievement. Sources from BYD also indicate that the group hopes to return to mainland China’s A share market in a short time. Thus it can create a capital scale with its 3 listed companies, and the total market value will be approaching RMB 100 billion in the future.
 
Industry figures show that BYD sold 101,000 vehicles in the whole year of 2007, up about 100% over 2006. Along with the promotion of BYD auto market status, the demand also is increasing day by day. BYD urgently needs to expand and enhance its automobile business, and the remarkable performance of the capital stock market strengthened “the blood transfusion” ability of its auto sector.

Xia Zhibing, general manager of the BYD auto sales company, says the company is fully prepared to achieve the 100% sales growth goal by selling 200,000 vehicles in 2008. This year BYD will still dedicate itself to exploring the market for vehicles below 2.4L displacement, and newly-launched F6 will also occupy 10% of the market.

F6 carries on F3’s “subversive” fixed price strategy, with its price reduced to RMB 89,800 -- RMB 159,800. Compared to joint-venture brands’ price strategy (they habitually fixed high price at the beginning and then gradually drop the price), F6 obviously has competitive advantage thanks to its accurate fixed price.

Xia Zhibing says at last that BYD stock is expected to return to the A share market in the first half of this year. He notes that the BYD cash flow is healthy, and this time its return to the A-share market also suggests the company's hope that the Chinese auto market can share the growth of BYD's automobile business.