BYD, Chinese Electric Vehicle Maker, Reports 162% Increase in Operating Profit Due to Strong Mask Business Performance

[Asia Economy Reporter Yujin Cho] Berkshire Hathaway, the investment company led by Warren Buffett, invested in BYD, China's largest electric vehicle manufacturer, whose operating profit more than doubled last year, Bloomberg reported on the 29th (local time).

According to the earnings report released that day, BYD's annual operating profit last year was 4.2 billion yuan, a 162% increase compared to the previous year (1.6 billion yuan).

BYD expects its operating profit in the first quarter of this year to increase by 166% year-on-year, continuing strong sales.

Major foreign media pointed to BYD's entry into the mask manufacturing industry early last year as the background for this strong performance.

In January last year, immediately after the outbreak of COVID-19, BYD entered the mask manufacturing business as the mask shortage intensified. It converted its mobile phone parts factory in Shenzhen, Guangdong Province, into a mask manufacturing plant, achieving a daily production capacity of 50 million masks, and currently employs 3,000 workers on the mask production line alone.

Although BYD has not disclosed specific performance related to mask production and exports, foreign media evaluated that the mask business likely contributed to the strong operating profit last year.

Despite launching new vehicles such as the sport utility vehicle (SUV) Tang and the E2 and E3 models, BYD's automobile sales sharply declined due to the impact of COVID-19, with last year's sales totaling 426,972 units, down 7.5% from the previous year.

BYD started as a mobile phone battery manufacturer in 1995, was a state-owned enterprise in 2002, and then acquired the for-sale Qin Chuan Automobile to fully enter the electric vehicle manufacturing industry.

This content was produced with the assistance of AI translation services.