BYD logs 14.29% year-on-year jump in first-half net profit

Shanghai (Gasgoo)- BYD Company Limited (BYD) announced that its 2020's first-half revenue slid 2.7% from a year ago to 60.503 billion yuan ($8,817,620,475), while the net profit attributable to shareholders jumped 14.29% year on year to roughly 1.662 billion yuan ($242,280,220).

Compared to the first quarter (Q1), BYD's second-quarter (Q2) revenue and net profit skyrocketed 107.46% and 1275.93% respectively to 40.824 billion yuan ($5,949,697,314) and 1.55 billion yuan ($225,864,808), according to both Q1 and H1 financial results.

(Photo source: BYD)

For the first half of 2020, BYD's automobile sales totaled 158,628 units, plunging 30.45% from the previous year. Nevertheless, the company’s auto arm gained gradual sales rebound after March as the COVID-19 pandemic was abating in China. According to BYD’s sales report, its Q2 sales reached 97,355 units, 59% more than that of the quarter ago period.

The contracted proceed from the automobile business should be blamed for BYD’s H1 revenue decrease. The company earned around 32.072 billion yuan ($4,674,128,380) worth of revenue from January to June, falling 5.62% over the year-ago period. Nonetheless, the downturn in automobile arm was somewhat offset by the 0.24% and 7.59% increase in the revenues of the handset components and assembly arm and the rechargeable battery and photovoltaic business.

BYD said, the spread of the COVID-19 pandemic across the globe in the first half of 2020, coupled with the continued trade friction between China and the U.S., have resulted in a drastic economic slowdown around the world. Amid such market climate, the production and sales volume of automobiles in China were down by 16.8% and 16.9% year on year respectively, according to the China Association of Automobile Manufacturers (CAAM). Among which, the NEV outputs and sales tumbled 36.5% and 37.4% to 397,000 units and 393,000 units.

(BYD Han EV, photo source: BYD)

With the increasingly fierce market competition, BYD firmly seized the key core technologies of NEVs and continued to launch competitive models, the company said. In March 2020, BYD released and mass-produced its next-generation battery product, the “Blade Battery,” which redefined the safety standards for new energy vehicle industry by passing the nail penetration test, the so-called “Mount Everest” with respect to safety testing for power batteries. Besides, in June 2020, BYD launched its new energy flagship model, “Han”, which is its first model equipped with the “Blade Battery” and “High Performance Silicon Carbide Motor Control Module”.