China's BYD Net Income Jumps Nearly 446% in 2022 Amid Stronger NEV Sales Growth

Automotive Author: Ziying Wu Mar 29, 2023 12:52 PM (GMT+8)

Chinese automaker BYD released its annual report for 2022 on the evening of March 28th, reporting a revenue of CNY 424.06 billion, a staggering YoY growth of 96.20%. The company stated that the strong growth in NEV sales effectively alleviated the cost pressure brought by the rising prices of upstream raw materials, leading to a substantial increase in profitability.

BYD

Chinese automaker BYD (Chinese:比亚迪) released its annual report for 2022 on the evening of March 28th, reporting a revenue of CNY 424.06 billion, a staggering YoY growth of 96.20%. Net profit attributable to shareholders rose to CNY 16.62 billion, up by 445.86% YoY. Net profit after tax and non-recurring items was CNY 15.64 billion, a YoY increase of 1146.42%. The board of directors approved a profit distribution plan, with a proposed cash dividend of CNY 11.42 per 10 shares for all shareholders.

BYD's revenue in 2022 from the automotive industry, automotive-related products, and other products was approximately CNY 324.69 billion, accounting for 76.57% of total revenue and representing a YoY increase of 151.78%. In 2021, the same industry accounted for 59.66% of the company's total revenue.

The company mainly engages in new energy vehicles (NEV) and related businesses, smartphone parts and assembly, second-life batteries, photovoltaics, and urban rail transit businesses. In 2022, BYD again claimed the title of the world's best-selling NEV brand, ranking first in China's NEV sales for the tenth consecutive year, with a market share of 27%, up nearly 10 percentage points YoY, according to the data from the China Association of Automobile Manufacturers.

In 2022, BYD launched several new car models, including the Han PLUS, Han Qiushan Green Edition, Dolphin, Tang DM-p, Tang D9, Yuanwang U8, and Yuanwang U9. The Han family sold more than 270,000 vehicles, becoming the top-selling mid-to-large-sized passenger car, while the Tang family sold more than 150,000 vehicles. The company stated that the strong growth in NEV sales effectively alleviated the cost pressure brought by the rising prices of upstream raw materials, leading to a substantial increase in profitability.

With regards to technology R&D, BYD invested CNY 20.22 billion in R&D in 2022, up 90.31% YoY. By the end of 2022, BYD had accumulated over 39,000 patent applications worldwide, with over 27,000 authorized patents and nearly 70,000 R&D personnel. The company released several new technologies such as blade batteries, DM-i super hybrid, e-platform 3.0, CTB battery body integration, and Yi Sifang, to strengthen the company's technical capabilities.

According to BYD's annual report for 2022, "Policy supply is expected to continue to promote the development of NEVs and create a favorable environment." The report notes that China's NEV industry chain has a solid foundation, high efficiency, strong resilience, and rapid growth, providing powerful support for China's and even the global automobile transformation. The NEV market is expected to continue to grow strongly in 2023, with the penetration rate expected to make significant breakthroughs.

Looking forward, BYD plans to promote the development of intelligent assisted driving through technological innovation, improve product competitiveness, and bring new momentum to brand development. In the overseas passenger car business sector, the company is accelerating the expansion of overseas markets. Its NEVs have entered 43 countries and regions, including Japan, Germany, Australia, and Brazil.

In its 2022 annual report, BYD stated that it expects new energy vehicles to maintain strong growth momentum in 2023, and the penetration rate is expected to increase significantly.