China’s largest NEVs manufacturer, BYD released its financial report for the first quarter yesterday, which shows a continuous decline in net profits.
The net profits reduced by 83.09 percent to 102 million yuan in the first quarter and the operating income of the company surged by 17.54 percent to 24.738 billion yuan.
The total assets, until the first quarter of 2018, amounted to 182.096 billion yuan, an increase of 2.24 percent.
The company is predicted to maintain a strong momentum for the NEVs business in the future; however, the profitability of the electric buses and saloon cars will be largely impaired due to reduced government subsidies.
Faced with slipping government subsidies and fierce competition in the NEVs market, BYD has launched its brand new e-platform and DiLink ecosystem, which aims at restructuring the NEVs industry as well as ways of travelling. Meanwhile, it has accelerated the course of launching new electrical vehicles.
It is difficult for BYD to maintain its previous growth rate for profitability in the short term. The net profits of BYD are slated to achieve in a range of between 300 million and 500 million yuan in the first quarter of this year, a decrease of a range between 71 percent and 83 percent, as predicted by the company.
According to the government’s new policies earlier this year concerning NEVs, the subsidies would be reduced to 0.7 times for new energy saloon cars and 0.4 times for new energy lorries.
The net profits reduced by 83.09 percent to 102 million yuan in the first quarter and the operating income of the company surged by 17.54 percent to 24.738 billion yuan.
The total assets, until the first quarter of 2018, amounted to 182.096 billion yuan, an increase of 2.24 percent.
The company is predicted to maintain a strong momentum for the NEVs business in the future; however, the profitability of the electric buses and saloon cars will be largely impaired due to reduced government subsidies.
Faced with slipping government subsidies and fierce competition in the NEVs market, BYD has launched its brand new e-platform and DiLink ecosystem, which aims at restructuring the NEVs industry as well as ways of travelling. Meanwhile, it has accelerated the course of launching new electrical vehicles.
It is difficult for BYD to maintain its previous growth rate for profitability in the short term. The net profits of BYD are slated to achieve in a range of between 300 million and 500 million yuan in the first quarter of this year, a decrease of a range between 71 percent and 83 percent, as predicted by the company.
According to the government’s new policies earlier this year concerning NEVs, the subsidies would be reduced to 0.7 times for new energy saloon cars and 0.4 times for new energy lorries.
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