Chinese EV Giant BYD Expects Nearly 90% Jump in 2023 Net Profit

Chinese electric vehicle manufacturer BYD is anticipated to see a significant increase in net profit in 2023 due to record sales of new energy vehicles, according to a report by Chinese EV portal CnEVPost. According to a profit preview released on January 29, 2024, BYD’s net profit in 2023 is expected to increase by 74.46-86.49% from the previous year, amounting to 29-31 billion yuan ($4.6-$4.9 billion). Considering non-operating income and expenses, BYD’s net profit in 2023 is projected to increase by 75.22-89.92% year-on-year, reaching 27.4-29.7 billion yuan ($4.3 billion to $4.7 billion).

BYD anticipates that its basic earnings per share in 2023 will increase by 74.78%-86.87% from 5.71 yuan in 2022, reaching 9.98 to 10.67 yuan. During the first three quarters of 2023, BYD’s net profit was about 21.4 billion yuan ($3.4 billion), and the net profit excluding non-operating income and expenses was 19.3 billion yuan ($3.1 billion). According to the profit preview, the net profit in the fourth quarter increased by 3.97-31.33% year-on-year to 7.6-9.6 billion yuan ($1.2-$1.5 billion), but it decreased from 10.4 billion yuan in the third quarter. BYD’s net profit is expected to be 8.1-10.4 billion yuan ($1.3-$1.6 billion), excluding non-operating gains and losses.

BYD stated that the new energy vehicle industry continued to grow at a high speed in 2023, further solidifying its position as the world’s leading seller of electric vehicles. As competition in the sector intensifies, BYD emphasized that it demonstrated strong resilience by achieving significant profit improvement through enhanced brand power, rapid growth in overseas sales, continuous expansion of scale advantages, and strong industrial chain cost control capabilities.

In addition, BYD’s mobile phone parts assembly business benefited from an increase in the proportion of large overseas transactions, a rebound in Android customer demand, and high growth in new energy vehicles and smart new product businesses. BYD stated that the production capacity utilization rate in the company’s phone parts and assembly business has dramatically increased, the business structure has been further optimized, and profitability has significantly improved.

According to data released on January 1, 2024, BYD’s new car sales volume in 2023 increased 62.3% from the previous year to 3,024,417 units. In the overseas market in 2023, BYD sold 242,765 new energy vehicles, a 493.51% increase from the last year. In 2023, BYD’s power and energy storage battery installation capacity increased by 67.98% year-on-year to approximately 150.909 GWh.