On April 27, BYD (比亚迪) disclosed the company’s quarterly report for the first quarter of 2022, achieving a net revenue of CNY 66.8 billion and a net profit of CNY 808 million, an increase of 240%.
In response to the robust performance, BYD previously explained in the forecast that during the first quarter of 2022, China's new energy vehicle industry has continued the momentum of rapid growth, BYD Group's new energy vehicle sales reached a record high, driving a significant improvement in the company's earnings, and to some extent hedge the pressure on earnings from rising upstream raw material prices.
Recently, the Ministry of Industry and Information Technology spokesman Junjie Luo introduced at the conference, in the first quarter of this year, China's new energy vehicles continue the rapid growth momentum with the cumulative promotion of more than 10 million units. In total, the deliveries have accumulated 10.33 million units, breaking the 10 million mark, which becomes an important force leading the transformation of the global automotive industry towards electrification.
In the first quarter, the cumulative production and sales of new energy vehicles completed 1,293,000 and 1,257,000 units respectively, both up more than 1.4 times year-on-year and exceeding the full-year level of 2019. The market penetration rate has now reached 19.3%, an increase of 11.4 percentage points year-on-year and 5.9 percentage points higher than the full year of 2021.
Some research pointed out that under the resumption of work and production, the new energy vehicle industry start-up rate and capacity utilization rate are expected to increase one after another. Meanwhile, the upstream lithium salt demand of the industry chain will also receive marginal improvement. From the quarterly performance, it is forecasted that the enterprise performance in the lithium plate business will continue to be unveiled. Due to the significant pullback after the current annualized valuation in a very low position, it is beneficial for lithium plate to configure a more cost-effective solution to accommodate downstream resumption and subsequently achieve a rebound.