BYD Records Impressive Earnings in Q1-3 of 2023, with 130% Net Profit Increase

Author: Muriel Meng Editor: Yiru Qian Nov 01, 2023 07:49 PM (GMT+8)

Chinese auto companies continue to make efforts to develop technological advantages through R&D investment, affecting the global auto industry pattern.


On the evening of October 30, BYD (002594.SZ) has officially release the third quarterly report. According to the financial report, the company realized operating income of CNY 422.28 billion in the first three quarters, a year-on-year increase of 58%; and net profit of CNY 21.37 billion, a remarkable year-on-year surge of nearly 130%. The performance of BYD maintains a rapid growth trend. Within them, revenue for the third quarter is CNY 162.15 billion, with a relatively slight year-on-year increase of 38.49%, and net profit is CNY 10.41 billion, increasing dramatically by 82.16% year-on-year.

BYD demonstrated that the revenue growth is mainly resulted by the enhancement of new energy vehicle sales. According to the announcement, BYD's cumulative sales in the first three quarters exceeded 2,079,600 units, up 76% year-on-year. Specifically, the cumulative sales of DM plug-in hybrid models totaled about 1,021,800 units, with a siginificant year-on-year gowth of 72%.

BYD's continuous innovation and investment in technology also contributes to the satisfactory performence growth. In the first three quarters, BYD's R&D expenses amounted to CNY 24.938 billion, increasing dramatically by 129.42% year-on-year, with R&D expenses significantly exceeding net profit for the same period. Up till now, BYD's R&D investment has accumulated more than CNY 100 billion, with more than 90,000 R&D engineers, 11 major research institutes, and more than 40,000 patents applied for and more than 28,000 patents authorized globally. With the release of disruptive technologies such as Blade Battery, DM-i Super Hybrid, ePlatform 3.0, CTB Battery Body Integration, E-Square, Cloud Van, DMO Super Hybrid Off-Road and so on, BYD's technological moat is constantly being reinforced.

Strong technical advantages also promote the steady improvement of BYD's product matrix. In August this year, BYD officially released the professional personalized brand Equation Leopard, and the first model Leopard 5 is positioned as a super hybrid hardcore SUV to meet the personalized needs of users. In September, the luxury version of Yangwang U8 was launched. At present, BYD  has built a multi-brand matrix consisting of BYD brand, Tengsei, Yangwang and Equation Leopard.

In terms of overseas markets, BYD also continues to make progress. From January to September this year, the company's overseas sales achieved more than 145,500 new energy vehicles, far exceeding 55,900 units in last year. It is worth noting that the company has been the champion of pure electric vehicle sales in Thailand for nine consecutive months, in which the Dolphin and Yuan PLUS took the first and second place in pure electric sales, and has been the champion of the total sales of new energy vehicles in Brazil for three consecutive months. In October 2023, BYD debuted at the Tokyo Motor Show in Japan with a variety of models, becoming the first Chinese automaker in history to participate in the show.

Industry insiders illustrated that BYD's rapid development can reflect China's strong innovation vitality and brand promising confidence in the context of the revelution of global auto industry. With more Chinese brands accelerating into the international market, it is expected to reshape the competitive pattern of the global auto industry.

As of press time, BYD closed at CNY 238.54 apiece, with a market capitalization of CNY 694.4 billion.