The profit was mainly boosted by the improvement of overall operating efficiency and the rising profitability of new products, said by the company.
On March 30, BYD released its financial report for 2020 with the operating income increased by 22.59% and reached CNY 156.60 billion, the net income soared 162.27% to CNY 4.23 billion.
The increased profits, BYD says it was mainly contributed by the operating efficiency improvement and the rising profitability of new products. The gross profit margin of BYD reached 19.4%, with a year-on-year increase of 3.1%, and the net profit margin posted 3.8%, with a growth of 2.2%, in the year 2020.
The revenue from automobile and related products recorded CNY 83.99 billion, jumped up by 32.76%. The mobile phone business reported CNY 60.04 billion of revenue with a growth of 12.48%. The rechargeable battery and photovoltaic business reached CNY 12.09 billion in revenue, representing an increase of 15.06%. The three major businesses sector accounted for 53.64%, 38.34% and 7.72% of the total revenue.
During the entire 2020, BYD produced 432,000 vehicles, including 194,100 new energy vehicles and 237,800 traditional fuel vehicles. The total sales volume last year decreased by 5.08% to 394,600, which was caused by dropping sales in new energy vehicles of 12.52% year-over-year.
Among the new energy vehicles, the output of passenger vehicles including pure electric vehicles and plug-in hybrid vehicles decreased by 14.73%, while commercial vehicles increased by 4.75%. During 2020, the subsidies also contributed CNY 2.30 billion - a 54.37% percentage- to the company's net income.
According to the data of China Automobile Association, the annual production and sales of domestic new energy vehicles in 2020 will be 1.366 million and 1.367 million respectively. It can be seen that although BYD's new energy production and sales rate will decline in 2020, its new energy production and sales will still account for 14.21% and 11.92% of the national new energy vehicle production and sales in 2020.
BYD, founded in 1995 and headquartered in Shenzhen, is a company in the automobile and new energy industries. The business layout covers electronics, automobiles, new energy and rail transit. it is listed on both the Hong Kong and Shenzhen Stock Exchanges.
The share price had been rising all the way in 2020 and continued in the very beginning of 2021. On February 3 of 2021, BYD's share price reached a record high of CNY 273.4 per share, with a total market value of CNY 781.8 billion. However, the price plummeted after when. The share closed at CNY 169.0 on March 30 and the market cap shrank to CNY 483.5 billion. BYD lost over CNY 300 billion in less than two months.