China’s BYD Co Ltd reported record third-quarter earnings on Monday, the best for any period ever, as the market leader in electric vehicles maintained its position in the home country despite weaker demand and more competition. According to a market filing by BYD, its third-quarter net profit of 10.41 billion yuan ($1.42 billion) represented an 82.2% increase in comparison to the same period last year, driven by a 38.5% increase in revenue of 162.2 billion yuan. It warned earlier this month that net earnings for the third quarter might quadruple.
Compared to the second quarter, when earnings increased by 145%, that growth was less. The third-quarter earnings fell between 9.55 billion and 11.55 billion yuan, which was the range of the projection.
BYD’s annual sales report
According to a statement submitted to the Hong Kong Stock Exchange, the Shenzhen-based company reported a profit of 10.4 billion yuan ($1.42 billion) for the July-September quarter, which was an 82 percent year-over-year increase and its highest-ever earnings in a single quarter.
The amount was consistent with BYD’s earlier prediction of quarterly earnings of 9.55 billion to 11.55 billion yuan. After more than doubling year over year and surpassing last year’s whole annual earnings of 16.6 billion yuan, BYD’s cumulative net profit for the months of January through September came to 21.4 billion yuan. China, which produces the most greenhouse gases globally, has seen a sharp increase in the demand for electric vehicles in recent years.
BYD, whose investors include US billionaire Warren Buffet, envisions a world in which electric and hybrid cars will account for the majority of its sales by 2035. BYD proclaimed itself “the world’s leading manufacturer of new energy vehicles and power batteries” earlier this year after being the first manufacturer in history to produce five million electric vehicles.
The company began in 2003 with a focus on battery design and manufacturing, but it soon expanded into the car industry. Leading international automakers including Tesla, BMW, Mercedes, and Audi rely on BYD for their battery needs.
Beijing has provided decades of subsidies in relevant technological disciplines to China’s electric vehicle industry. Suspicion has also been aroused by the Chinese electric car companies’ increasing success abroad. Citing unfair competition, the European Union declared last month that it would be looking into the nation’s granting of relevant subsidies.
