Despite US-EU Sanctions Backlash... Chinese Electric Vehicle Companies' Performance Smooth Sailing

BYD's First Half Net Profit Reaches 13.6 Billion Yuan

Despite sanctions backlash from the United States and the European Union (EU), Chinese electric vehicle companies are posting solid performance.

According to China’s First Financial Daily on the 28th, the world's largest electric vehicle manufacturer BYD's revenue for the first half of this year reached 301.1 billion yuan (approximately 56.4953 trillion KRW), up 15.76% compared to the same period last year, and net profit was 13.63 billion yuan, an increase of 24%. These figures significantly exceed the growth rates in the first quarter, which were 3.97% in revenue and 10.62% in net profit.

[Image source=Reuters Yonhap News]

By business segment, sales of automobiles and related products recorded 228.3 billion yuan, up 9.33% from last year, while sales of mobile phone components and assembled products reached 72.78 billion yuan, increasing 42.45% over the same period. The respective shares of these business segments in total sales were 75.82% and 24.17%.

According to data from the China Association of Automobile Manufacturers, in the first half of the year, China’s automobile production and sales volumes were 13.891 million and 14.047 million units, up 4.9% and 6.1% year-on-year, respectively. Among these, new energy vehicle production and sales were 4.929 million and 4.944 million units, increasing 30.1% and 32.0% over the same period.

During the same period, BYD’s cumulative new energy vehicle sales reached approximately 1.613 million units, up 28.46%, and overseas sales were 203,000 units, a 173.8% increase year-on-year. BYD’s research and development (R&D) investment in the first half was 20.177 billion yuan, up 41.64% compared to last year.

Chinese electric vehicle maker Li Auto (Li Xiang) also outperformed market expectations. Li Auto’s revenue in the second quarter was 31.7 billion yuan, up 10.6% from last year. However, profitability deteriorated somewhat. Adjusted net profit was 1.5 billion yuan, down 44.9% year-on-year, nearly halving.

Li Auto estimated that third-quarter revenue would range from 39.4 billion to 42.2 billion yuan, an increase of 13.7% to 21.6% compared to the same period last year. Second-quarter shipments were 108,581 units, up 25.5% year-on-year, and third-quarter shipments are expected to be between 145,000 and 155,000 units, an increase of approximately 38% to 47.5%.

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