This semi-annual report is generally beyond expectations for the following reasons:
1. The overall market situation in the first half of this year is not optimistic. The addition of Xiaomi su7 and overwhelming traffic, as well as the impact of the far-leading intelligent driving field by Wenjie;
2. In the face of this market, BYD launched the Honor Edition to increase sales, but the average price dropped. In addition, the release of DMI5.0 was at the end of May, and the positive impact on the semi-annual report cannot be fully reflected.
In this case, not only sales increased by 28%, but also operating income and net profit have a good growth, which is really commendable.
In the second half of the year, both operating income and net profit will enter an accelerated stage:
1. The full outbreak of DMI5.0;
2. The accelerated promotion of high-end cars;
3. The full-speed rollout of overseas markets
So as long as the first half of the year is average, it will be considered as exceeding expectations.
Several figures in the report are quite surprising:
BYD invested 20.1 billion in R&D in the first half of the year, an increase of 41% over last year. It can only be said that they are willing to invest, and intelligent driving should be the biggest part;
Net cash flow from operating activities decreased to 14.1 billion, compared with 81.9 billion last year, which indirectly shows the popularity of DMI because it requires large-scale purchases;
The gross profit margin of automobiles is 24%, an increase of 3.27% over last year. The price reduction did not affect BYD's profits;
Net profit increased by 24%, and non-GAAP increased by 27%. In this environment, the 24% growth is already commendable.
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