BYD’s shares dropped despite the Chinese new energy vehicle manufacturer said its net profit expanded 35 percent last year.
BYD [SHE: 2594] was trading down 1.1 percent at CNY371.16 (USD51.13) as of 1.45 p.m. in Shenzhen today. Its Hong Kong-traded stock [HKG: 1211] fell 2.7 percent to HKD392.60 (USD50.50).
Net profit totaled CNY40.3 billion (USD5.5 billion) in the 12 months ended Dec. 31, compared with CNY30 billion the previous year, the Shenzhen-based company said in its latest earnings report released yesterday.
BYD’s revenue surged 29 percent to CNY777.1 billion (USD107 billion) in the period, remaining above Tesla at USD97.7 billion, after surpassing the US electric vehicle giant for the first time in the third quarter of last year.
Revenue from the automotive business jumped 28 percent to CNY617.4 billion last year from the year before, as new energy passenger vehicle sales climbed 41 percent to 4.25 million units. The related gross profit margin fell to 22.3 percent from 23 percent.
In comparison, Tesla sold 1.79 million cars in 2024, with a gross profit margin falling to 18.4 percent from 23.3 percent.
“Keeping pace with market trends, BYD will further improve its multi-brand matrix and accelerate the pace of overseas expansion of its business to help China’s automobile industry to lead the global transformation of NEVs,” Chairman Wang Chuanfu said.
Revenue from the mobile phone components and assembly business totaled CNY159.6 billion last year, up 35 percent from the previous year and accounting for the remaining 20 percent of BYD’s total revenue, the firm added.
“For handset components and assembly business, BYD will continue to strengthen core technology research and development and high-end manufacturing innovation, further enhance vertical integration advantages, and deepen strategic cooperation with key customers,” Wang noted.
BYD invested CNY54.2 billion in R&D last year, up 36 percent from 2023, achieving an R&D intensity of 7 percent. Tesla’s R&D expenses rose 14 percent to USD4.5 billion in the period.
Last year, BYD’s tax contribution reached a new record high of CNY51 billion.
