BYD achieved a net profit of 13.638 billion Chinese yuan (1.72 billion euros) in the first half of the year, representing a 24.44% increase compared to the same period last year, according to its semi-annual financial results published on Wednesday.
The manufacturer attributes these results to the growth of its global sales, the expansion of its new energy vehicle business, and the increase in exports and overseas shipments, which contributed to a record second quarter for deliveries, with a 40% year-on-year rise in electric and plug-in hybrid cars.
In the first half, the operating income of the Seal and Dolphin manufacturer reached 301.127 billion yuan (37.98 billion euros), up 15.76% from the first half of 2023.
BYD states that sales of its new energy vehicles continued to reach record levels, “ranking first in the world with an increasing market share and greater brand influence.”
Specifically, its revenue from automobiles, related products, and other products amounted to approximately 228.317 billion yuan (28.8 billion euros), representing a year-on-year increase of 9.33%.
BYD targets international expansion despite geopolitical disruptions
In the first half of this year, the Chinese company reported that it accelerated its expansion into foreign markets, as well as progress in its local manufacturing, while also speeding up the development of its new energy passenger vehicle business in markets outside China to further expand its brand.
This was despite the fact that, in the first half of 2024, there were “international geopolitical disruptions,” with frequent “international trade frictions,” such as the threat of tariffs on Chinese electric vehicle imports from both the European Union (17% for BYD) and the United States (100%).
The manufacturer therefore states that the external environment became “more complex, severe, and uncertain,” and that the performance of the economic recovery in various countries was “asynchronous.”
Among them was China, where in the first half of 2024, its automotive industry was hindered by the complex macroeconomic environment, slower growth in domestic demand, and increased inventory pressure, while also facing more challenges from intensified competition in the Chinese market and worsening international trade protectionism, BYD adds.
Despite this, the manufacturer achieved an operating profit of 17.323 billion yuan (2.185.1 million euros) in the first half of the year, a 26.1% increase compared to the same period the previous year.
Additionally, its net cash flow from continuing operations in the first half was 14.178 billion Chinese yuan (1.788.4 million euros), an 82.7% decrease from the same period the previous year.
Looking ahead to the second half of 2024, BYD states that ongoing geopolitical tensions and growing trade protectionism will pose a certain level of challenges to global economic growth.
“Despite the complex external political and economic environment, China’s economy maintained stable development with a long-term favourable trend due to its solid foundation, strong resilience, significant potential, and sufficient growth momentum,” it adds.
Thus, BYD asserts that with the maturation of new energy vehicle technologies and increasing consumer awareness, along with support from Chinese government public policies, “there will be a broader development space in the market… and the strong and rapid growth momentum will be maintained, with the penetration rate expected to reach another record.”
