Now the automobile market is in a major change that has not been seen in a hundred years, and various car companies are increasing their research and development efforts and scrambling to the goal of new energy. The most eye-catching performance is BYD Automobile, which achieved 740,000 car sales in 2021, an increase of 73.34% year-on-year, of which the sales of new energy vehicles reached 600,000 units, an increase of 218.30% year-on-year, ranking first in domestic new energy vehicle sales for 9 consecutive years, and is the fastest enterprise in the transformation of traditional domestic car companies.
Record revenue Gross margins are not ideal
It is such a car company, the gross profit margin performance in 2021 is not ideal, according to the latest financial report data released by BYD: IND's annual operating income in 2021 was 216.142 billion yuan, an increase of 38.02% year-on-year, and it was also the first time that its revenue exceeded the 200 billion yuan mark, with a net profit of 3.045 billion yuan, down 28.08% year-on-year; the net profit after deducting non-recurring gains and losses was 1.255 billion yuan, down 57.53% year-on-year.
You know, this is not the revenue of BYD Automobile, but the total revenue of BYD listed companies, in fact, BYD listed companies are mainly composed of automobile business, mobile phone parts and assembly business, secondary rechargeable battery and photovoltaic business, urban rail transit and other businesses. The operating income of the well-known vehicle and battery and parts, as well as other automotive products business accounted for only 52.04% of the total operating income, 112.489 billion yuan, an increase of 33.93% year-on-year, and it was also the first time to break through the 100 billion mark. Among them, the operating cost was 92.927 billion yuan, an increase of 47.90% year-on-year, while the gross profit margin was only 17.39%, down 7.81% from the same period last year. There is no new car-making force Weilai and the ideal of about 20% high gross profit margin, not to mention Tesla's 30% gross profit margin. So what is the reason why BYD's gross profit margin is so low?
Where did the profits go?
In fact, there are many reasons for the decline in the gross profit margin of BYD Automobile, the main reason is that BYD's aggressive pricing strategy in the rapid development of the new energy vehicle market in order to better seize the market, coupled with the continuous rise in the price of upstream raw materials in 2021 and the lack of production capacity of related products, the expansion of production capacity, as well as the continuous increase in technology research and development investment required for product intelligence and electrification transformation, which are all required a lot of money.
It should be known that in 2020, the average price of bydir's new energy passenger cars was 156,000 yuan, and by 2021, the average price of bicycles for its new energy passenger cars would drop to 143,000 yuan, down 8.26% year-on-year. The reason for the decline in the average price of BYD bicycles is the structural change in its car sales. In 2020, the models with a higher proportion of BYD's automobile sales are the models that cost more than 200,000 yuan - Han, while the models priced at about 100,000 yuan in 2021 have higher sales, while the models priced at more than 200,000 yuan have a lower proportion of sales. The main sales model is a low-end model with a relatively close price, and the profit margin will be correspondingly smaller.
As we all know, in recent years, new energy raw materials have ushered in a sharp rise, of which the key metal resources of power batteries, nickel and cobalt, have risen sharply, and the market quotation of battery-grade lithium carbonate has risen from 50,000 / ton at the beginning of last year to 500,000 / ton now, an increase of nearly 10 times year-on-year.
However, the problem of rising raw materials is not a problem for BYD alone, which is what the entire industry needs to face together. Another major reason for BYD's profit decline is the lack of production capacity. According to the data, "ATD's cumulative orders for cars in hand have reached 400,000 units, and this number continues to increase." "Under the pressure of so many orders, BYD needs to rapidly expand its production capacity to respond to market needs faster. In the key battery field of new energy vehicles, BYD has successively established 6 Fordy battery companies, all of which will have 9 battery production bases in the country after completion, and the production capacity is expected to reach 91GWh. In the automotive plant, BYD has also invested in factories in many parts of the country, and will expand from three production bases to nine production bases in the future.
In addition, in order to make the new plant go into production as soon as possible, BYD has added more than 60,000 new reserve employees in 2021 and paid more than 1 billion yuan in compensation.
In terms of technology research and development, BYD also continues to increase its size, in 2021, BYD R & D investment was 10.627 billion yuan, an increase of 24.20% year-on-year, accounting for 4.92% of revenue, the number of R & D personnel of about 40,400 people, an increase of 31.52% year-on-year. The continuous increase in research and development has made BYD have industry-leading core technologies, which has also promoted bydding BYD's rapid development.
Chedegang Summary:
BYD's 2021 profit decline, is only a transition of BYD's development strategy, the future of BYD's major production bases put into use, its production capacity will rise sharply, coupled with its layout in the dynasty, ocean and Denza, as well as the new high-end new energy brand being planned, the future will be more powerful, let's wait and see!