The new energy business continues to be strong, helping BYD achieve a 36.35% year-on-year increase in revenue in Q1, a 100.38% year-on-year increase in net income attributable to the parent company, setting a record high for a single quarter, and a 117.80% year-on-year increase in net income after stripping out non-recurring items.
$BYD Company Limited (002594.SZ)$ / $BYD COMPANY (01211.HK)$ The main business profitability is strong, with Net income in Q1 exceeding 9.1 billion, doubling year-on-year, reaching a new quarterly high.
On April 25, BYD released the Earnings Reports for the first quarter of 2025:
Revenue: Q1 revenue reached 170.36 billion yuan, an increase of 36.35% year-on-year.
Net income attributable to the parent company: Q1 Net income was 9.155 billion yuan, up 100.38% year-on-year.
Net income excluding non-recurring items: Q1 net income excluding non-recurring items was 8.172 billion yuan, a year-on-year increase of 117.80%.
Basic EPS: Q1 basic EPS was 3.12 yuan, a year-on-year increase of 98.73%.
R&D investment: Q1 R&D expenditure was 14.223 billion yuan, a year-on-year increase of 34.04%.
The Electric Vehicles business was a strong driver, with Q1 net income doubling.
BYD delivered results in Q1 2025 that far exceeded market expectations. The company achieved revenue of 170.36 billion yuan, a year-on-year increase of 36.35%. The net income attributable to shareholders was 9.155 billion yuan, a year-on-year increase of 100.38%, setting a new quarterly record. More importantly, the company's net income excluding non-recurring items reached 8.172 billion yuan, an astonishing year-on-year increase of 117.80%, indicating a significant enhancement in the profitability of the core business.
The Earnings Reports show that the performance growth of BYD in Q1 2025 was mainly driven by the continuing strong performance of the New energy Fund business. Although the company did not disclose specific vehicle sales data, the phrase 'mainly due to the growth of the New energy Fund business' appeared multiple times in the explanations for the changes in the company's Financial Indicators, indicating that the growth in sales and revenue from Electric Vehicles was the main driving force behind the overall performance.
It's worth noting that despite the cost of goods sold increasing by 37.45%, slightly higher than the revenue growth of 36.35%, indicating some pressure on the overall gross margin, the company compensated for this shortfall by improving operational efficiency and obtaining foreign exchange gains. According to the Earnings Reports, the company's financial expenses were -1.908 billion yuan, a year-on-year change of up to 883.88%, mainly due to a significant increase in foreign exchange gains.
At the same time, the company's credit impairment losses decreased by 92.74% year-on-year to 0.024 billion yuan, indicating improved efficiency in accounts receivable management and further improvements in asset quality.
Continue to increase R&D investment.
BYD continues to maintain high-intensity R&D investment, with R&D expenses in the first quarter of 2025 reaching 14.223 billion yuan, a year-on-year increase of 34.04%, mainly for employee salaries and material consumption. In addition, the company's development expenditure reached 0.86 billion yuan, growing by 69.28% compared to the beginning of the year, with a significant increase in capitalized R&D investment.
Although high R&D expenditures may pressure profits in the short term, this is a necessary measure for the company to build long-term competitive barriers, especially in the context of accelerating electrification of Global Autos and intensifying competition, where the CSI Leading Technology Index is crucial for BYD's long-term development.
Earnings Reports show that BYD's inventory reached 154.374 billion yuan by the end of the first quarter, an increase of 33.04% compared to the beginning of the year, primarily driven by "increased market Orders and stock preparations." This reflects the company's optimistic attitude towards sales expectations, but also means more funds are tied up in inventory.
As a result, the company's cash flow from operating activities (CFO) net amount was 8.581 billion yuan, a year-on-year decrease of 16.10%.
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Editor/Somer
