"In the first quarter of 2020, the novel coronavirus epidemic and the macroeconomic downturn had a greater demand shocks on the overall market of the automobile industry, and the company's sales of new energy vehicles dropped significantly compared with the same period last year." Regarding the reasons for the change in performance, BYD said in the announcement. In the first quarter of last year, BYD's net profit was 750 million yuan, a year-on-year surge of 632%.
Affected by the Spring Festival and the epidemic situation, the overall automobile market in China declined by 42.4% in the first quarter, among which new energy vehicles declined by 56.4%. BYD is also deeply affected. In the first quarter, the sales of new energy vehicles were 22,000, down 69.7% year-on-year, and both passenger cars and commercial vehicles fell by more than 60%.
Thanks to Song Pro, BYD's fuel vehicle sector performed better than expected, with sales of 39,000 vehicles in the first quarter, down only 65,438+02% year-on-year. Among them, BYD Song Series sold 28,000 vehicles, a year-on-year increase of 142.9%.
In the first half of 20 19, the proportion of new energy vehicle sales in BYD's total sales increased from 30% in 20 18 to 60%, but after the subsidy for new energy vehicles decreased in July 20 19, BYD's new energy vehicle sales rarely began to decline. In 20 19, BYD's sales of new energy vehicles decreased by 7.39% year-on-year. Due to the continuous decline, BYD's new energy vehicle sales accounted for 36% of its total sales in the first quarter of this year.
Recently, BYD's 20 19 financial report shows that the company's net profit of 20161200 million yuan attributable to shareholders of listed companies decreased by 42% year-on-year, the lowest value in the past five years. BYD said that this was mainly due to changes in industries and policies and the impact of rising R&D expenses during this period.
At the beginning of 2020, the new energy vehicle consumption incentive policy and new energy vehicle subsidies will be extended for two years, and new energy vehicles will be exempted from vehicle purchase tax for two years, which will bring good expectations for the recovery of new energy vehicle enterprises.
"(Subsidy continuation) is equivalent to giving a shot in the arm to the depressed auto market and forming a joint force with the localities to boost and detonate the auto consumer market." Insiders of BYD told the reporter of Economic Observer Network.
BYD's previous financial report showed that its performance was greatly affected by subsidies. In March this year, BYD received two subsidies for the promotion and application of new energy vehicles, amounting to 654.38+34 million yuan and 654.38+98 million yuan respectively. BYD said that these subsidies will help improve the company's cash flow level and reduce financial expenses and the company's asset-liability ratio.
"the State Council recently said that the new energy purchase subsidy will be extended for another two years. The extension of subsidies will further guide consumers to continue to accept new energy vehicles, which is conducive to the medium and long-term development of the new energy vehicle industry and highlights the strategic position of new energy vehicles. " According to the analysis of Pacific Securities, although BYD's short-term performance is under certain pressure, its advantages in the field of new energy in the medium and long term still exist.
In addition to favorable policies, BYD is also adjusting its internal operations, looking for new growth points and enhancing its ability to resist risks. On March 29th, BYD released a brand-new lithium ferrous phosphate blade battery, claiming to reduce the cost by 20% to 30%. The battery was installed on BYD Korean EV for the first time and is planned to be supplied to the outside world. In addition, BYD recently formally established five Foday companies to complete the business spin-off of major components of new energy vehicles, including batteries, and accelerate marketization. These moves are considered as BYD's attempt to become a global integrated supplier of electric technology.
Huachuang Securities reported in April 14, which is the fundamental low point of BYD. With the implementation of the new energy vehicle policy and the introduction of the company's new battery technology and the fourth generation DM technology, it is expected that the company's sales and net profit will continue to improve in the next two years. However, there are also risks such as lower-than-expected demand for electric vehicles, lower-than-expected cost of batteries, and fluctuation of electric vehicle policies.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.