Editor's introduction: BYD released the 2021 annual financial report, with operating income of 216.142 billion yuan, an increase of 38.02% year-on-year, and a market value of more than 680 billion yuan; the rapid development of the domestic new energy market, new and old car companies rushing to enter the game, Wang Chuanfu in the second half of the "Shoujiangshan" pressure doubled.
In 21 years, the cumulative sales volume exceeded 740,000
"There are many enterprises in Shenzhen, it is not easy to pass the name of two words, the initial five names, the last check all have, then you can only take three words." Wang Chuanfu, chairman and president of BYD Co., Ltd., publicly stated that "BYD" did not have a clear meaning when it was originally registered, and the reason for taking a "strange name" was only because it was easier to pass the enterprise name registration process.
At the same time, Wang Chuanfu did not forget to add: "At that time, it was difficult to start a business, and it was not known whether it could survive or not, so it was established first and then said through registration." In fact, after 27 years of groping and growing, BYD has not only successfully survived the tide of entrepreneurship, but also lived well.
A few days ago, BYD released its 2021 annual performance report. In 2021, the operating income will reach 216.142 billion yuan, an increase of 38.02% year-on-year. As of today's close, BYD's market value was 668.981 billion yuan, which is 50 times the average market value of listed companies in the automotive industry.
It is understood that BYD currently has three major business segments, namely automobile business, mobile phone components and assembly business, secondary rechargeable battery and photovoltaic business. The three major businesses accounted for 52.04%, 40% and 7.62% of ATD's total revenue, respectively.
In the past year, THANKS TOD's excellent performance in the new energy vehicle market, BYD's auto sales have shown explosive growth. Official data show that in 2021, BYD's cumulative sales exceeded 740,000 vehicles, an increase of 73.34% year-on-year; of which the cumulative sales of new energy vehicles were about 603,800 units, an increase of 218.3% year-on-year, accounting for about 81.59% of ATD's annual car sales in 2021.
After entering 2022, BYD has accelerated the pace of its new energy vehicle launch. Insiders revealed that in the future, BYD's auto business will be composed of four sectors: Dynasty Network, Ocean Network, Denza and high-end brands, and will further expand the high-end market and launch high-end brands, with a price range of more than 500,000 to 1 million yuan.
BYD's highlight performance has also successfully attracted the attention of capital tycoons. Catherine Wood, who was named "female version of Buffett" for her consecutive bets on Tesla, Zoom, Bitcoin, etc., has continuously purchased BYD's shares traded in the U.S. OTC through its Ark Investment Company, adding more than 60,000 shares in two days, holding a total of 330,000 SHARES of BYD OTC shares, worth more than $14 million.
The actual profit was only 782 million yuan
BYD, which has a revenue of more than 200 billion yuan, seems to have submitted a beautiful answer sheet, but it is not difficult to carefully disassemble the annual report and find that BYD will "increase revenue without increasing profits" in 2021. In particular, the net profit after deducting non-recurring gains and losses has a "waist cut". The data shows that BYD's non-recurring profit and loss in 2021 reached 1.79 billion yuan, 40% higher than 1.28 billion yuan in 2020. BYD's non-recurring profit and loss includes government subsidies, financing gains, etc.
As we all know, among BYD's non-recurring revenues, the existence of government subsidies for new energy vehicles is the highest. According to the financial report, the subsidy income of BYD new energy vehicles in 2021 totaled 5.867 billion yuan, and the government subsidies included in the profit and loss of the current period were 2.263 billion yuan. This figure is nearly 2 times BYD's full-year net profit. This means that after deducting special government subsidies, BYD's actual profit in 2021 is only 782 million yuan.
Auto analyst Ren Wanfu said frankly: "For new energy vehicle manufacturers, with the decline and withdrawal of new energy vehicle subsidies, how to achieve profitability in the case of full marketization has become a top priority. ”
Throughout the industry, the difficulty of profitability of new energy vehicles is a common phenomenon. At present, car companies that only produce new energy vehicles are almost all in a state of loss, and the head enterprise "Wei Xiaoli" of new car manufacturers is no exception. According to the data, WEILAI lost 4.016 billion yuan in 2021; Xiaopeng Automobile lost 4.863 billion yuan; and the ideal loss was 322 million yuan.
Perhaps because of this, Wang Chuanfu will call on the government to give corresponding policy support in the transition period after the subsidy at the 2022 Electric Vehicle Hundred People Conference, and propose to set up an "integral pool" to adjust the balance between supply and demand.
"Considering that product development takes 3 to 5 years, in order to stabilize industry expectations, it is recommended that the purchase tax reduction policy for new energy vehicles can be extended to maintain policy stability during the "14th Five-Year Plan" period. At the same time, last year's new energy vehicle sales reached a new high, the supply and demand of points is seriously imbalanced, the price fluctuates sharply, which is not conducive to the development of the industry, it is recommended to refer to the grain reserve adjustment mechanism of agriculture, study and set up an integral pool to adjust the balance between supply and demand, enhance the predictability of the integral price, and ensure the effective operation of the double integral policy. Wang Chuanfu thought.
In addition, BYD is also actively looking for more markets in the battery field. According to media reports, BYD's power battery business, Fordy Battery, is actively exploring the market in the new car camp, including Weilai and Xiaomi Automobile.
"The fixed-point cooperation between Weilai and Fordy Battery has been finalized before the Spring Festival, using BYD's lithium iron phosphate battery." As for when the cooperation between the two sides will be announced, some industry insiders close to the top level of Weilai said that the form of cooperation is relatively new, and it can wait and see. At the same time, Xiaomi Automobile has also signed a fixed-point cooperation agreement with Fordi Battery.
Wang Chuanfu's successive "resignation" has become a myth
As early as 2009, Wang Chuanfu had proposed: "The future of the world is hybrid and electric vehicles, not fuel vehicles, BYD plans to become China's first automobile manufacturer in 2015, surpassing Toyota to become the world's first in 2025." Wang Chuanfu said that 2020 will be the world of electric vehicles, and it is said that BYD has mastered the core technology of electric vehicles.
In 2022, Wang Chuanfu stepped down as the legal representative and chairman of a number of BYD subsidiaries, although Wang Chuanfu no longer serves as the legal representative of many BYD subsidiaries, he is still the largest shareholder of BYD Automobile Co., Ltd., accounting for 17.77% of the shares.
BYD responded that the group has recently changed the legal person and chairman of its subsidiaries to the actual business leader to simplify the administrative process and the company's various business development is not affected. But it still gave rise to speculation that Wang Chuanfu was in the second line.
Subsequently, Wang Chuanfu spoke publicly at the electric vehicle 100 people's meeting. For the future, Wang Chuanfu is full of confidence. "Behind the explosive growth of the market, the industry is facing severe challenges such as rising raw material prices and unstable supply chains. This year is a key year for new energy vehicles to take advantage of the momentum and accelerate change. He said the industry could be changing faster than expected.
For more than a decade, the goal of becoming China's first automobile company has not been fulfilled, but in 2021, BYD ushered in the 1 millionth new energy vehicle off the production line, and many models are selling well. In the same year, BYD launched the DM-I supermix system, which successfully killed a blue ocean in the red sea of fuel vehicles.
At present, the penetration rate of new energy vehicles in the mainland has increased from 6% at the beginning of last year to 22% at the end of last year, an average increase of 1.3 percentage points per month. The penetration rate in the first half of March this year has exceeded 28%.
With the sales of domestic new energy vehicles soaring, the entire new energy automobile industry has stood on the "outlet". Among them, BYD Automobile, as the only enterprise in the industry that has the core technology of the whole industry chain such as batteries, motors, electronic controls and chips, is at the top of the "outlet".
According to the data, in 2022, BYD's new energy vehicle sales target is about 1.1-1.2 million, of which 600,000 are pure electric models and 500,000-600,000 plug-in hybrid models are expected.
CITIC Construction Investment said in a related research report that BYD's current new car delivery volume is its historical order before the price increase, and the improvement in its profitability is expected to be reflected in the third quarter. In the case of saturated delivery and strong demand, the price increase will turn orders into stronger profits.
Industry insiders commented: Intensive product launch in 2022, for BYD, or will usher in a "big outbreak" of product models, sales will also rise. However, in the cruel market competition, BYD will also face certain market pressure, Volkswagen, Honda and other traditional car companies have begun to force new energy vehicles, more or less will have a certain impact on BYD.
Now that the expansion of the territory has been completed, how to lead BYD out of the siege among many competitors will be Wang Chuanfu's next task.