China's electric vehicle (EV) maker BYD Company Ltd. released its third-quarter financial reports on Monday, with a year-on-year 45.3-percent decrease of net profits attributable to its shareholders.
The operating income of the company amounted to 88.98 billion yuan (12.77 billion U.S. dollars), up 20.35 percent in the first three quarters, while the net profits attributable to shareholders are 1.527 billion yuan (21.9 million U.S. dollars).
China has adjusted its subsidy policies on EVs in February this year. It plans to reduce subsidies in the sector step by step. EVs can only obtain 70 percent of the grants available in 2017.
Notably, BYD's profitability has dropped sharply since the first quarter of the year. The company explained the reason in its previous announcement that its electric vehicles business has been affected by the government's reduced subsidies. Also, fierce competition has affected the company's profitability.
The company has projected a momentum growth in its EV division in the fourth quarter based on its orders in hand. The mobile phone parts assembly business of the company will grow steadily in the next quarter. However, the photovoltaic arm of the company is predicted by the company to take a loss in the fourth quarter as the sales, and retail prices are slated to slip in the next quarter.
"The New Energy Vehicles (NEVs) have a bright outlook for the future, and we predict that the sales of our NEVs division will multiply in the second half of the year," said Wang Chuanfu, chairman of BYD, in August.
The operating income of the company amounted to 88.98 billion yuan (12.77 billion U.S. dollars), up 20.35 percent in the first three quarters, while the net profits attributable to shareholders are 1.527 billion yuan (21.9 million U.S. dollars).
China has adjusted its subsidy policies on EVs in February this year. It plans to reduce subsidies in the sector step by step. EVs can only obtain 70 percent of the grants available in 2017.
Notably, BYD's profitability has dropped sharply since the first quarter of the year. The company explained the reason in its previous announcement that its electric vehicles business has been affected by the government's reduced subsidies. Also, fierce competition has affected the company's profitability.
The company has projected a momentum growth in its EV division in the fourth quarter based on its orders in hand. The mobile phone parts assembly business of the company will grow steadily in the next quarter. However, the photovoltaic arm of the company is predicted by the company to take a loss in the fourth quarter as the sales, and retail prices are slated to slip in the next quarter.
"The New Energy Vehicles (NEVs) have a bright outlook for the future, and we predict that the sales of our NEVs division will multiply in the second half of the year," said Wang Chuanfu, chairman of BYD, in August.
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