On April 27, BYD Co., Ltd. (hereinafter referred to as "BYD") released its first-quarter financial report showing that in the first quarter of 2022, it achieved operating income of 6.68 billion yuan, an increase of 63.02% year-on-year; net profit attributable to shareholders of listed companies of 808 million yuan, an increase of 240.59% year-on-year; and deducted non-net profit of 514 million yuan, an increase of 729.44% year-on-year. The report shows that the government subsidy was 193 million yuan in the current period.
According to the data, BYD was founded in 1995, listed on the Hong Kong Stock Exchange in 2002 and listed on the Shenzhen Stock Exchange in 2011. BYD first started with the battery business, and in 2003, it acquired Qinchuan Automobile and officially entered the automotive industry, launching its first model, F3, in 2005. Before 2010, with the development of China's automotive industry, BYD's automobile sales also rose, and the automobile business ushered in a high-light moment of development. After 2010, BYD began to enter the bottleneck, and it was not until 2021 that it exceeded its 2010 sales for the first time. Previously, BYD released its annual report showing that in 2021, it achieved operating income of 216.142 billion yuan, net profit attributable to shareholders of listed companies of 3.045 billion yuan, and cumulative sales of 740,100 vehicles for the whole year.
It should be noted that BYD is not just a car company, it has three major business segments: automobile business, mobile phone components and assembly business, secondary rechargeable battery and photovoltaic business, but BYD did not announce the performance of major businesses in the first quarter. Referring to the 2021 annual financial report, the three major sectors accounted for about 52%, 40% and 8% of the company's total revenue, respectively, of which the revenue of automobiles, automobile-related products and other products business was 112.489 billion yuan, an increase of 33.93% year-on-year, which is the main source of BYD's operating income.
According to the data, BYD's cumulative automobile sales in the first quarter were 291,400 units, an increase of 179.78% year-on-year, of which the sales of new energy passenger cars were 284,700 units, an increase of 433.42% year-on-year, and the sales of fuel vehicles were 5,049 units, down 89.78% year-on-year. Unlike in fiscal 2021, BYD achieved revenue and net profit growth in the face of increased car sales. From the market level, BYD's newly launched Qin PLUS DM-i, Song PLUS DM-i, Tang DM-i and other DM-i super hybrid models are widely sought after by the market, but the above models are only listed in the second quarter, so THE PERFORMANCE OF BYD in the first quarter of 2022 is relatively poor, and the background of the substantial growth is the growth of BYD's new energy vehicle sales, which is caused by the low base in January 2021. As for the net profit growth, BYD announced two price increases for products in the first quarter, the first time because of the decline in subsidies for new energy vehicles, the second time because of the rise in raw material prices, for BYD, the self-research of the whole industry chain can make BYD's cost control more excellent, and the price increase will share the cost pressure with consumers.
It is worth mentioning that BYD issued an announcement on April 3, announcing that it will stop the production of fuel vehicles from March, and the company will focus on pure electric and plug-in hybrid vehicles in the future. For BYD, the suspension of fuel vehicles is to comply with the development of the market, but also the inevitable trend of the transformation of BYD's automobile sector, compared with fuel vehicles, BYD new energy vehicles continue to sell well in the market, and the problem of "not being able to mention the car" continues to plague car buyers.
For the next market performance, BYD revealed in the minutes of the investor meeting after the release of the 2021 financial report that BYD's cumulative undelivered orders have reached 400,000 units and are still increasing month by month. According to this, BYD conservatively expects to sell 1.5 million vehicles in 2022; if the supply chain is good, it will hit the sales target of 2 million units. The minutes of the meeting show that BYD Han DM-i sales orders are good after the listing, and the follow-up is expected to sell more than 30,000 Han series units in a single month. BYD said that the current growth trend of raw material prices has slowed down, and if the price of lithium carbonate remains at its current price, it will not have much impact on the sales of new energy vehicles this year. In addition, BYD is also further expanding the high-end market and launching high-end brands, with a price range expected to be more than 500,000-1 million yuan. After the equity change, the Denza brand will also launch a new car to the market in 2022. According to the plan, Denza will launch three new models in the Chinese market in the next two years, including MPV and SUV.
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