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BYD’s third-quarter profit tumbles as exports growth fails to stem China sales slump
Profit fell to US$1.1 billion in the September quarter amid slowing sales and price cuts in BYD’s home market
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Daniel Renin Shanghai
China’s electric-vehicle (EV) leader BYD reported a 32.6 per cent fall in third-quarter profit, as slowing sales and price cuts in the domestic market offset its strong performance abroad.
The Shenzhen-based company said its profit tumbled to 7.8 billion yuan (US$1.1 billion) in the three months ended September, compared to 11.6 billion yuan a year earlier, according to a statement filed with the Hong Kong and Shenzhen stock exchanges on Thursday.
Still, that represented a 22.6 per cent increase from the 6.4 billion yuan posted in the preceding three months.
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Quarterly revenue, meanwhile, slumped 3.1 per cent year on year to 195 billion yuan.
Earnings for the period fell short of a consensus estimate of 9.6 billion yuan from a Bloomberg survey of analysts. Revenue was 9.7 per cent lower than the average forecast of 215.9 billion yuan.
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“Falling sales in China and discounts offered to spur deliveries in the home market have pressured BYD to improve its profitability,” said Ivan Li, a fund manager at Loyal Wealth Management in Shanghai. “Its robust sales abroad are not enough to offset its weak domestic performance.”
Controlled by Chinese billionaire Wang Chuanfu, BYD delivered a total of 1.11 million pure electric and plug-in hybrid vehicles in the third quarter, down 1.8 per cent a year earlier and 2.7 per cent lower quarter on quarter.
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