BYD net profits attributable to shareholders slumped 45.3% YoY for first three quarters

Shanghai (Gasgoo)- From January to September, BYD's revenues totaled RMB88.981 billion, a YoY increase of 20.35%. However, its cumulative net profits attributable to shareholders slumped 45.3% from the previous year to RMB1.527 billion, the automaker announced on October 30.

In the third quarter, the company gained RMB34.83 billion in revenues with a year-on-year (YoY) growth of 20.54%, while saw its net profits attributable to shareholders fell 1.92% over a year ago to RMB1.048 billion.

BYD said its net profit decline should be attributed to the phase-out of the NEV (new energy vehicle) subsidy, which led to the evident YoY decrease in the overall profits of NEV businesses, including electric buses and new energy passenger vehicles.

Chinese authorities issued a statement in February saying that the new energy passenger vehicles and buses registered during the transitional period (from February 12 to June 11) can only enjoy the 70% of the subsidy operated in 2017. Thus, the short-term profits for NEV makers were undoubtedly depressed.

BYD forecasted an annual net profit attributable to shareholder in 2018 totaling around RMB2.72705 billion to RMB3.12705 billion, which will be 32.94% to 23.10% less than that of a year ago. It may indicate the automaker's confidence in a further growth in net profits for the fourth quarter over the third.

In addition, BYD also said its NEV sales will maintain a rising momentum in the rest time of the year so that its net profit performance could be accordingly revitalized.