BYD’s net income in the second quarter was up 98.36 percent from the first quarter, while gross margin was 18.69 percent, down 3.19 percentage points from the first quarter.
BYD (HKG: 1211, OTCMKTS: BYDDY) saw strong net income growth in the second quarter, although gross margin declined, as vehicle sales rebounded to a record high.
The Chinese new energy vehicle (NEV) maker had net income of RMB 9.06 billion ($1.27 billion) in the second quarter, the second-highest on record behind RMB 10.41 billion in the third quarter of 2023, according to a financial report released today.
That’s up 32.8 percent year-on-year and up 98.36 percent from the first quarter.
It reported revenue of RMB 176.2 billion in the second quarter, the second-highest on record after RMB 180 billion in the fourth quarter of 2023, an increase of 25.89 percent year-on-year and 41.01 percent from the first quarter.
BYD sold a record 986,720 NEVs in the second quarter, an increase of 40.25 percent year-on-year and up 57.56 percent from 626,263 in the first quarter.
Despite the record vehicle sales, BYD’s gross margin declined in the second quarter, likely due in part to the drag from the fierce price war in China’s auto market.
BYD’s gross profit margin was 18.69 percent in the second quarter, flat from 18.72 percent a year earlier and down 3.19 percentage points from 21.88 percent in the first quarter.
In the first half of 2024, BYD’s revenue amounted to RMB 301.1 billion, an increase of 15.76 percent year-on-year.
Net income for the first half of the year was RMB 13.63 billion, an increase of 24 percent year-on-year.
Revenue from the vehicles, vehicle-related products and other products business for the first half of the year was RMB 228.3 billion, an increase of 9.33 percent year-on-year. First-half revenue from the cell phone components, assembly and other products business amounted to RMB 72.78 billion, representing a year-on-year increase of 42.45 percent.
Gross margin for the first half of the year rose to about 20.01 percent from about 18.33 percent in the first half of 2023, which BYD said was mainly due to the increase in NEV business.
($1 = RMB 7.1267)
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