BYD lost 390 million in the first three quarters

BYD recently announced the third quarter report, the report shows that the company achieved operating income of 40.409 billion yuan from January to September, an increase of 4.4%; net profit of 389 million yuan, a decrease of 16.38%. After deducting non-recurring gains and losses, BYD lost 390 million yuan in the first three quarters.

The quarterly report shows that in the third quarter, the net profit attributable to the shareholders of the listed company was 28.281 million yuan, a year-on-year decrease of 26.06%; the operating income was 13.693 billion yuan, an increase of 8.13% year-on-year. BYD said that due to factors such as increased competition in the Chinese auto market and weak demand from independent brands, full-year profit is expected to fall by 10% to 22%. Similar to the situation in the first half of this year, BYD’s net profit decreased mainly due to the decline in the traditional auto business.

BYD did not publish the results of car sales for the first nine months. According to statistics provided by LMC Automotive Consulting, as of September, BYD sold a total of 297,956 vehicles of various types, a year-on-year drop of 20%. However, BYD's new energy automotive business has grown rapidly. From January to September this year, the sales volume of the hybrid model “Qin” reached 9,473, and the sales of pure electric vehicle “E6” reached 2004.

According to analysis, in the first half of this year, new energy vehicles such as electric vehicles and plug-in hybrid electric vehicles brought BYD's income up to 2.7 billion yuan, an increase of more than 10 times. The traditional cars are facing the impact of foreign, general and other foreign auto brands, and the Chinese auto market suffered a decline in sales, resulting in a halving of the increase, to 7%. BYD said that its net profit in 2014 may have dropped to 430 to 500 million yuan, compared with 553 million yuan last year.

According to BYD internal sources, in September this year, BYD new energy vehicle sales reached 1,895 vehicles, an increase of 24%. Among them, BYD Qin sold 1,700 vehicles in September, an increase of 384 vehicles from the previous month and a 29% increase from the previous month. Accumulated sales from January to September reached 9,473 vehicles. From January to September this year, BYD's sales of new energy vehicles have surpassed 10,000 vehicles, reaching 11,477 vehicles, ranking the domestic champion of new energy vehicle sales.

The implementation of the new energy vehicle exemption from purchase tax policy started on September 1 boosted the market for new energy vehicles. The price was between 198,800 and 209,800 yuan for BYD Qin, minus national and local subsidies of 66,500 yuan and 1 After the multiple purchase tax, the minimum starting price was only RMB 112,800. If you buy in the Shanghai area, you can get a license worth about 100,000, resulting in the car is currently in hot demand in short supply.

Compared with the hot sales of Qin, BYD's sales of another pure-electric model, the E6, was flat, with average monthly sales of 200 units in the first nine months of the year. Some analysts pointed out that this may be related to the high selling price of the E6. Although the vehicle has a range of 300 kilometers and is the longest electric vehicle in China, the price of more than 300,000 yuan is still prohibitive for ordinary consumers.

According to the analysis, although BYD's new energy vehicle business grew rapidly in the first three quarters, its net profit decreased year-on-year, indicating that the development of the company's new energy vehicles has not yet turned into profitability, and it is expected to have a negative effect on the stock price.