Investor Network's Xie Yinan
Recently, various listed car companies have released their financial reports for the first half of the year.
We noticed a data point, which is the profit per vehicle. According to the 2024 first half of the year mainstream car companies' per vehicle profit ranking released by Yiche, among the mainstream listed car companies in China, the top ten in per vehicle profit rankings are Great Wall, Geely, Li Xiang, BYD, Chongqing Sokon Industry Group Stock, Jiangling Motors Corporation, BAIC Group, SAIC Motor Corporation, Chongqing Changan Automobile, and Guangzhou Automobile Group.
Persist in benefiting consumers.
In the first half of this year, BYD's revenue reached 301.127 billion yuan, with a net income of 13.631 billion yuan, surpassing SAIC Motor Corporation and becoming the highest revenue-generating car company in the first half of the year, while also topping the net income ranking.
However, in terms of per vehicle profit, BYD only ranks fourth, at around 8500 yuan. The reason for the discrepancy between BYD's total net income and per vehicle profit lies in the balance it has achieved between high-quality enterprise development and consumer benefits, entering a virtuous cycle. From the beginning of the year with 'electricity cheaper than oil' to the mid-year fifth-generation DM technology, BYD continuously drives product design optimization through its vertical integration strategy, enabling more consumers to enjoy more advanced new energy technology at lower prices.
The product concept of 'technology equality' plays a crucial role. By benefiting consumers, while ensuring a balance between high-quality enterprise development and universal consumer benefits, BYD has achieved a win-win-win situation, not only benefiting consumers with technology but also stabilizing growth in the eyes of shareholder investors. What is even more surprising is that BYD's total number of employees has exceeded 0.9 million, the highest among over 5300 A-share listed companies. The seemingly incomprehensibly low per vehicle profit behind BYD embodies a long-term development concept of long-termism.
No compromise in research and development investment.
The most important thing to achieve 'technological parity' is the development of technology. Over the past 14 years from 2011 to now, BYD has invested more in research and development for 13 years than its net income. This means that BYD not only reinvests all the profits obtained from the market into new technologies, but also continues to polish its products out of its own pocket. The 2024 interim report shows that BYD's research and development expenses reached 20.177 billion yuan, surpassing the net income of the same period by 6.6 billion yuan.
According to Wind data, among more than 5300 A-share listed companies, BYD ranked first in R&D expenses in the first half of 2024, becoming the 'King of R&D' in A-shares. BYD is persistently practicing its development concept of 'technology first', making us realize that Chinese automotive companies are trustworthy and promising.
The future looks promising.
If we say that by relying on the high-quality new energy automotive manufacturing capabilities in the early stage, BYD has gradually led independent brands to climb higher. Next, the brand will focus more on the second half of intelligence. BYD has a smart driving R&D team of over four thousand engineers, and has built a full-stack self-developed smart driving R&D system. Technology drives sales, sales build reputation, and reputation attracts more outstanding talents to the enterprise, forming a virtuous cycle of BYD's own development.
China Passenger Car Association data shows that in August, the momentum of independent brands' development remains strong, with the market share of Chinese brand passenger vehicles reaching 63.4%, a historical high. At this time, the flywheel effect belonging to BYD is just beginning. (Produced by TMTPost) ■
