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[YesAuto News] On October 29, BYD released a report for the third quarter of 2018, showing that the company's operating income in the third quarter of this year was 34.83 billion yuan, a year-on-year increase of 20.54%; the net profit attributable to listed companies was approximately 1.048 billion yuan, a year-on-year decrease of 1.92 %. Based on the first three quarters, BYD's turnover in the first September of 2018 was 88.98 billion yuan, a year-on-year increase of 20.35%; the net profit attributable to listed companies was about 1.527 billion yuan, a year-on-year decrease of 45.3%.

From the impact of the adjustment of new energy vehicle subsidies, BYD's net profit growth rate has begun to decline sharply since the first quarter of this year. However, the financial reports for the three quarters of this year showed that net profits were 102 million yuan, 377 million yuan, and 1.048 billion yuan, respectively, showing an upward trend quarter by quarter. In addition, it is worth mentioning that BYD’s third quarterly report shows that the net cash flow from operating activities during the period turned positive from 1.607 billion yuan at the end of June this year to 6.65 billion yuan. However, the auto-related government subsidies received by BYD also increased to 1.452 billion yuan from 890 million yuan in the first half of the year.

In the report, BYD estimated its full-year operating conditions. The net profit for 2018 was approximately 2.727 billion yuan to 3.127 billion yuan; the decrease in net profit was reduced to 32.94%-23.10%.

Sales of new energy passenger car companies in the first September of 2018 (partial)
Car company September 2018 sales (units) Sales in the first September of 2018 (units) Year-on-year cumulative year-on-year for the first September 2018
BYD 26111 137237 95%
BAIC New Energy 10738 86660 61%
SAIC Passenger Car 9178 75296 181%
Huatai Automobile 7639 33110 765%
Chery Automobile 7536 44060 145%
Geely Automobile 6735 33474 102%
JAC 4668 33061 89%
Changan Automobile 3437 17,718 9%
Data source: Travel Federation Tabulation: Autohome Industry Channel

BYD explained the reasons for the expected changes in performance. In the new energy sector, it is expected to continue to maintain strong growth in the fourth quarter, driving the rapid recovery of the group’s profit, especially in the passenger car segment. As the bottleneck of battery production capacity is alleviated, sales are expected to increase compared with the same period last year. Achieved substantial growth; in terms of fuel vehicle business, it is expected that Song Max will continue to sell well, and sales of Tang fuel version and Qin Pro fuel version will also continue to grow. In addition, the mobile phone components and assembly business is expected to maintain steady development, and the photovoltaic business still has a certain loss in the fourth quarter.