On March 27, BYD released its 2017 annual performance report. In 2017, BYD’s revenue was 105.915 billion yuan, an increase of 2.36% year-on-year; net profit attributable to shareholders of listed companies was 4.066 billion yuan, a year-on-year decrease of 19.51%. After adjusting, BYD gradually came out of the trough. It is expected that sales of new energy passenger vehicles will increase by more than 200% year-on-year in the first quarter of this year, and passenger vehicle sales will increase by more than 20% year-on-year.
Regarding 2017 full-year results, BYD Chairman and President Wang Chuanfu said: 'In 2017, despite the changes in new energy subsidy policy and market competition, the profitability of the company’s overall automotive business has been affected, but BYD has remained for three consecutive years. In the global new energy vehicle market, the sales championship status. In addition, the cloud business achieved breakthroughs and received orders from multiple domestic and foreign cities one after another. The first commercial operation line was completed and delivered in September 2017. For mobile phone parts and assembly business, The company continued to receive high-end flagship model orders from leading smartphone brands, driving the rapid growth of metal parts business revenue.
New energy vehicle revenue rose
In 2017, revenue from BYD's auto and related products business was approximately RMB 56.624 billion, a year-on-year decrease of 0.68%; revenue from mobile phone parts and assembly business was approximately RMB 40.473 billion, an increase of 3.53% year-on-year; revenue from secondary rechargeable batteries and photovoltaic business was approx. RMB8.767 billion, an increase of 19.37% year-on-year. The three businesses accounted for 53.46%, 38.21% and 8.28% of the Group's total revenue respectively.
Among them, BYD's revenue from its new energy auto business last year was approximately RMB 39.060 billion, an increase of 12.83% over the same period of last year, and further increased its proportion of BYD's revenue to 36.88%. BYD noted that despite the policy of new energy subsidies in 2017 and the gradual competition in the market With fierce influence, BYD continued to invest in R&D and upgrading technology, and expanded its production capacity to promote the sustainable development of new energy vehicle business and realize rapid growth of new energy automotive business. Sales volume of BYD new energy vehicles increased by more than 15% year-on-year to more than 110,000 vehicles last year. .
However, BYD’s net profit declined by nearly 20% due to factors such as the subsidy for new energy vehicles, and the decline in net profit. The first financial reporter reviewed the relevant new energy subsidy policies for 2016 and 2017. In contrast, the new national subsidy standard for passenger The subsidy for vehicles retreated by 20% according to the 2016 subsidy standard. Subsidy standards for passenger cars have generally fallen by 40% in 2016 standards, and even fast-charged pure electric passenger cars have even decreased by 60%. At the same time, subsidies have been changed. The funding method was changed from the original appropriation at the beginning of the year to the year-end liquidation. Take BYD's plug-in hybrid Qin as an example. In 2016, the state subsidy was 30,000 yuan, but in 2017 it was reduced to 24,000 yuan. In addition, it was previously The ratio of local subsidy to subsidy in the regions was 1:1. Last year, the local subsidy was reduced to only 0.5% of the national subsidy. This means that a country’s subsidy for Qin’s country last year was 36,000 yuan, which is 2.4 years less than 2016. Ten thousand yuan.
In the first quarter of 2017, BYD's new energy vehicle market was obviously affected by new energy subsidies and other policy adjustments, but then climbed month after month. In January this year, BYD new energy vehicles grew more than 10 times year-on-year. In February, thanks to Qin, Song DM and other plug-in hybrid models are selling well. The number of new energy vehicles has soared by 300% over the same period of the previous year to 8236 vehicles, among which the sales of plug-in hybrid vehicles have soared 539% year-on-year. They continued to maintain strong sales in March. The momentum is that in the first quarter of this year, sales of BYD's new energy passenger vehicles will increase by more than 200% year-on-year, and passenger vehicle sales will increase by more than 20% year-on-year.
BYD said that it will launch a series of heavy-duty models for new energy passenger vehicles, including a new generation of Tang and Qin models, as well as a compact electric-only SUV model and a new energy version of Song MAX. It is expected that the company’s auto business will usher in A new round of growth cycle. In addition, BYD will actively promote the expansion of new energy vehicles from first-tier cities and second-tier cities to second-tier and third-tier cities, and ultimately achieve the nationwide sales of BYD new energy vehicles. In the traditional fuel vehicle sector, the company will pass The new exterior design and platform-based product development greatly increase the quality level and aesthetic appearance of the models while achieving cost effective control, and promote the return of the fuel vehicle business to the growth track.
In 2017, under the background of the year-on-year decline in the overall sales of new energy passenger vehicles across the country, BYD passenger cars achieved a converse growth, with market share increasing by 3.16% year-on-year to 14.73%, ranking first in sales of new energy buses nationwide. By far, BYD's Pure electric buses have been put into operation in many domestic cities such as Beijing, Shenzhen, Guangzhou, Dalian, and Changsha. The overall operation has been good and gradually established brand reputation. In terms of overseas markets, BYD has received successively from London, United Kingdom, and Los Angeles, USA in 2017. Orders from Sydney, Australia, Turin, Italy, Okinawa, Japan and other locations around the world will push BYD's 'urban bus electrification' solution from the Chinese market to international. In 2018, BYD will continue to promote the electrification of public transport in domestic and foreign cities and continue to improve. In the global market penetration and market share.
Cloud track and battery business are favored
As a strategic product in the urban rail transit field of BYD, BYD has received orders from numerous domestic and foreign cities after the release of the cloud tracks in 2016. Wang Chuanfu once stated in public that the cloud track “will recreate a BYD”.
BYD's first commercial-operated cloud track line with independent intellectual property rights was completed and delivered to traffic in Yinchuan in September 2017, signifying that BYD's cloud-rail business has officially entered the stage of commercial operation.
BYD pointed out that in 2018, the company will focus on promoting low-carbon and environmentally friendly cloud rail products, aiming at the huge demand of second- and third-tier cities in China, and helping solve the problem of increasingly serious traffic congestion in the city.
Wang Chuanfu believes that 2018 will be the year when BYD returns to high-speed growth. BYD will continue to take new energy vehicles and cloud tracks as an important strategic development direction to achieve long-term sustainable growth of the company.
We are also looking forward to the power battery business. In 2017, BYD's secondary rechargeable battery business developed well, and traditional battery sales increased in a contrarian direction; while solar energy business still suffered losses due to fierce market competition. At the same time, BYD also actively researches and develops energy storage batteries. And solar cell products, used in energy storage power stations and photovoltaic power stations and other fields.
In the future, BYD will continue to expand the application range of lithium-ion batteries and nickel batteries to consolidate its leading position in the market. In the photovoltaic business, it will actively expand the domestic and overseas photovoltaic and energy storage markets, increase capacity utilization and sales scale, and actively control costs. Improve business revenue and profitability.
It is worth noting that since BYD’s first announcement of the supply of open-battery batteries in 2017, BYD’s rumors of supplying batteries to domestic and foreign automotive companies have continued to be heard. BYD is the leading company for power batteries in China, and its 2018 power battery capacity is expected to Up to 28GWh. With the continued rapid growth of China's new energy automotive industry, the industry generally believes that BYD's power battery business deserves attention.