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BYD's 113 million year-on-year net profit in the first quarter is expected to pick up significantly in the second quarter
Apr 29,2020 08:29CST
The content below was translated by Tencent automatically for reference.

SMM4, April 29: April 29, BYD released its first quarterly report for 2020, the company achieved revenue of 19.679 billion yuan in January-March 2020, down 35.06% from the same period last year. The automobile industry has disclosed that the average operating income growth rate of individual stocks in the first quarter is-4.85%. The net profit belonging to the shareholders of listed companies was 113 million yuan, down 84.98% from the same period last year. The automobile industry has reported an average net profit growth rate of-28.65% for individual stocks in the first quarter, and the company's earnings per share was 0.02 yuan.

Affected by the epidemic of Xinguan pneumonia, the automobile industry is facing greater pressure in the first quarter. In the first quarter of 2020, the narrow passenger car retail market was 3.01 million, down 41 per cent from a year earlier, according to the federation. Of these, retail sales were only 250000 in February, down 80 per cent from a year earlier.

BYD said that in the first quarter of 2020, the outbreak of new coronavirus pneumonia and macroeconomic downturn had a greater impact on the overall market demand of the automotive industry, and the company's sales of new energy vehicles fell sharply compared with the same period last year. In the aspect of traditional fuel vehicles, with the continuous hot sales of Song Pro, the downward pressure of fuel vehicle sales has been alleviated to a certain extent. Mobile phone components and assembly business, the company actively expand the scope of business and deepen customer cooperation to achieve good results, to promote the steady development of the business.

In addition, the financial statements showed a net cash flow inflow of 4.949 billion from operating activities in the first quarter, an increase of 11.13 per cent over the same period. BYD said it was mainly due to faster recovery of accounts receivable. At the same time, benefiting from the active expansion of a variety of financing channels and good capital management, the net outflow of cash flows from fund-raising activities and investment activities decreased by 107.87% and 20.6% respectively compared with the same period, and the asset-liability ratio also decreased by 0.8% compared with the beginning of the period. Continuous optimization of business quality.

The company also released the 2020 half-year performance forecast, the net profit from 2020-01-01 to 2020-06-30 is expected to be 1.6 billion yuan to 1.8 billion yuan, an increase of 10.00% to 23.75%, compared with 1.45457 billion yuan in the same period last year.

BYD said it expected the impact of the epidemic in the domestic market to fade and the auto industry to recover steadily in the second quarter of 2020. Benefiting from the recovery of the industry and the continued improvement of the Group's brand strength, it is expected that the Group's new energy vehicle sales and revenue will come out of the trough, driving the Group's revenue to achieve restorative growth. At the same time, the continued decline in the cost of new energy vehicles will also boost the group's profits. In the fuel vehicle business, driven by the best-selling models such as Song pro, sales are expected to achieve good performance. In the rail transit business part, with the acceleration of the construction progress of projects at home and abroad, it is expected that the related business will bring new growth space for the group's revenue and profit. In terms of mobile phone components and assembly business, the Group continues to increase its share of major customers, driving a significant expansion in the scale of its business, while the results of the introduction of new parts projects have emerged, and the shipment of products such as glass ceramics has increased rapidly. Profitability is expected to increase significantly in the second quarter, and operating profit margins have been significantly improved. In addition, mask production is expected to provide a positive contribution to the Group's sales revenue and profit growth. In the photovoltaic business, affected by the epidemic in overseas markets, the photovoltaic business is expected to be under pressure in the second quarter.

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