BYD‘s net profit in the fourth quarter is anticipated to be as high as RMB 7.7 billion ($1.1 billion) due to a significant increase in new energy vehicle (NEV) sales.
According to an earnings preview released today on the Shenzhen Stock Exchange, the largest Chinese manufacturer of NEVs expects its net profit for the entire year 2022 to be RMB 16 billion to RMB 17 billion, up 425.42 percent-458.26 percent year on year.
Considering BYD’s net profit of RMB 9.3 billion in the Q3 of 2022, the latest figure indicates a net profit of RMB 6.7 billion to RMB 7.7 billion in Q4.
BYD to surpass RMB 420 billion for 2022
This equates to a year-on-year increase of 1013 percent to 1179 percent and a quarterly increase of 17 percent to 35 percent.
BYD expects a net profit of RMB 15.1 billion to RMB 16.3 billion in 2022 after non-recurring gains and losses, indicating a figure of RMB 6.7 billion to RMB 7.9 billion in the fourth quarter.
According to the earnings forecast, BYD’s earnings per share for 2022 will range between RMB 5.5 and RMB 5.84.
According to BYD, the company’s annual revenue for 2022 is expected to surpass RMB 420 billion.
BYD’s solid performance in 2022 was primarily due to China’s NEV industry’s continued explosive growth.
The company saw a substantial increase in vehicle sales amidst a challenging and complex external environment and many variables that surpassed expectations.
BYD’s NEV surpassed competitors
According to the company, BYD’s NEV sales surpassed those of the competition, driving a significant improvement in earnings and effectively relieving price pressure from rising upstream raw material prices.
According to BYD, earnings in the cell phone parts and assembly business were under pressure due to ongoing low demand in the consumer electronics industry, resulting in inadequate capacity utilization.
However, according to the company, the cell phone parts and assembly corporation achieved steady and healthy growth due to the increasing proportion of large overseas customers and business structure optimization.
According to data released earlier this month, BYD sold 235,197 NEVs in December, a new all-time rise and the fourth straight month of more than 200,000 units.
BYD ceased producing and selling vehicles powered totally by internal combustion engines in March 2022, and all of its vehicles, including passenger cars and commercial vehicles, are now NEVs; in December, they sold 234,598 and 599 units, respectively.
BYD sold 683,440 NEVs in the fourth quarter, up 156.74 percent year on year and 26.87 percent from the q3.
BYD’s cumulative NEV sales for the full year 2022 were 1,863,494 units, up 208.64 percent from 603,783 units during the same period last year.
