BYD anticipates three-digit YoY spike in H1 2023 net profit

Shanghai (Gasgoo)- On July 14th, BYD released its performance forecast for the first half of 2023 (the reporting period), expecting a net profit attributable to shareholders of the listed company to range from 10.5 billion yuan to 11.7 billion yuan, a year-on-year surge of 192.05% to 225.43%.

Excluding the impact of certain non-recurring gains and losses, BYD’s net profit for the reporting period is projected to be between 9.3 billion yuan and 10.3 billion yuan, representing a year-on-year spike of 206.99% to 240%.

Han DM-i Champion Edition; photo credit: BYD

As to the factors contributing to the surging financial performance, in the first half of 2023, China’s new energy vehicle (NEV) industry maintained rapid growth, with BYD achieving strong year-on-year growth in NEV sales despite the high base of the same period last year, said the company. The company added it continued to strengthen its leadership position in the NEV industry, with a continuous increase in market share. In spite of the intensified competition in the automotive industry during the first half of the year, BYD maintained a good level of profitability due to the continuous improvement of its brand strength, expanding economies of scale, strong cost control capabilities in the industrial chain, and a decline in upstream raw material prices.

In the handset components and assembly business, benefited from increased share of major clients and growth in emerging businesses such as NEVs and new intelligent products, BYD saw improved profitability as capacity utilization rates increased and business structure further optimized.

This year, BYD has continued its strategy of launching a wide range of new models, with an accelerated pace of product introductions. It has already launched the 2023 Champion Edition models of the Qin PLUS DM-i, Tang DM-i, Song Pro DM-i, Han EV, and Qin PLUS EV. By offering richer features with lower prices, BYD aims to compete in the domain of joint-venture fuel vehicles.

Data shows that in the first half of this year, BYD achieved a total sales volume of 1,255,637 vehicles, a year-on-year increase of 95.78%, with monthly sales exceeding 250,000 vehicles in June.