BYD sees 20% net profit drop in 2017

Shanghai (Gasgoo)- BYD posted a YoY revenue growth of 2.34% to RMB 105.89 billion in 2017, and the net profit attributable to the shareholders of listed companies reached RMB 4.06 billion, falling 19.7% on an annual basis, according to its 2017 financial report released on Feb. 26. Besides, the report shows that earnings per share suffered a slump of 25.53% to RMB 1.4, compared to RMB 1.88 in 2016.

During 2017, the Chinese NEV industry kept a robust growth momentum. BYD also maintained its leading position in NEV field and took the world's NEV sales championship consecutively. The carmaker owed the profit decline to the sales and revenue drop of its traditional vehicle business. Besides, the intense competition in solar energy business also exerted negative impact on its profit growth. However, the fast growth of metal parts business made a great contribution to BYD's revenue. And also, BYD's SkyRail business saw profit gains from the second half of 2017.

BYD delivered around 410,000 vehicles in 2017 with a YoY slump of 17.5%, among which, sales of traditional fossil-fuel-powered vehicles only reached 296,000 units with a YoY drop of 9.2%. 

As the first carmaker focusing on the development of NEVs, BYD not only suffered sluggish sales of traditional fossil-fuel-powered vehicles in recent years, but also underwent great pressure to develop NEVs. To improve this state quo, BYD plans to release a range of all-new products and upgraded models in 2018 to improve its tough situation.

It is said that BYD will launch the e5 450, Qin EV 450, Yuan EV360 and Song EV400 in 2018. Additionally, its pure EV models will come fitted with upgraded three ternary lithium battery packs this year. What's more, all BYD models will be equipped with intelligent connected system from the first quarter of 2018. Strikingly, BYD aims to complete annual sales target of 600,000 units and NEV sales target of 200,000 units in 2018.