BYD boasts YoY surge in both H1 2023 revenue, net profit

Shanghai (Gasgoo)- On August 28, BYD Company Limited ("BYD") unveiled its semi-annual financial report for 2023, showcasing remarkable accomplishments. The report indicated a revenue of 260.124 billion yuan in the first half of 2023, marking a substantial year-on-year (YoY) growth of 72.72%, while net profits attributable to shareholders soared to 10.954 billion yuan, reflecting a staggering YoY surge of 204.68%, demonstrating a sustained trajectory of rapid expansion.

According to the financial report, BYD is primarily engaged in automobile business which mainly includes new energy vehicles, handset components and assembly services, rechargeable batteries and photovoltaics business. Meanwhile, with its technological superiority, the group actively develops urban rail transportation business segment.

Photo credit: BYD

Among its product categories, automobile operations undoubtedly constitute BYD's major revenue source. A comparative analysis reveals that the automotive segment within BYD's three core business areas not only exhibits the fastest growth but also commands the highest share.

The financial report shows that in the first half of 2023, the revenue from the automobiles and related products, and other products amounted to approximately 208.824 billion yuan, representing a year-on-year spike of 91.11%. The proportion of automotive-related businesses rose to 80.28%, a nearly 8 percentage point increase from the 72.55% recorded in the year-ago period.

The soar in financial performance is largely attributed to the surging sales of BYD's new energy vehicles. According to data from the China Association of Automobile Manufacturers, in the Jan.-Jun. period of 2023, the market share of BYD's new energy vehicles further expanded to 33.5%, an increase of 6.5 percentage points compared with 2022, continuing to consolidate its leading position in China's new energy vehicle industry, and it also continued to rank No. 1 by global sales.

In the field of new energy passenger vehicles, relying on the continuous application of core technologies and precise market strategies, the group took the lead in sales in the first half of 2023, achieving a substantial growth of nearly double that of the same period last year, and continued to hit a record high, ranking first in the sales volume of passenger vehicles among Chinese auto companies, BYD added in the report.

Another highlight of BYD's half-year financial report is its profitability. The report revealed a gross profit margin of 20.67% for its automobile business in the first half of 2023, a growth of 4.36 percentage points from the same period last year.

In response, BYD emphasized in the financial report that despite intensified competition in the automotive industry and the challenges posed by the withdrawal of new energy vehicle subsidies, the group maintained a robust profitability in its new energy passenger vehicle business during the first half of 2023 mainly thanks to the continuous enhancement of brand strength, expanding economies of scale, efficient cost controls along the industrial chain, and the alleviation of upstream raw material prices.