BYD's earnings preview implies that its net profit for the second quarter will be RMB 6.37 billion to RMB 7.57 billion, up 128.56 percent to 171.62 percent year-on-year.

BYD expects its net profit to continue to grow strongly in the second quarter on the back of a sharp increase in sales of new energy vehicles (NEVs).

The company expects its net profit attributable to shareholders in the first half of the year to be RMB 10.5 billion-RMB 11.7 billion ($1.64 billion), up 192.05 percent-225.43 percent year-on-year, according to its earnings preview today.

Considering it reported a net profit of RMB 4.13 billion in the first quarter, the earnings preview implies BYD's net profit in the second quarter will be RMB 6.37 billion-RMB 7.57 billion, up 128.56 percent-171.62 percent year-on-year and 54.24 percent-83.29 percent from the first quarter.

If BYD ends up posting results at the top of the preview, it would mean an all-time high. Its previous net profit record was RMB 7.31 billion in the fourth quarter of last year.

BYD delivered 703,561 NEVs in the second quarter, up 98.17 percent year-on-year and up 27.44 percent from the first quarter, data monitored by CnEVPost showed.

In the first half of the year, BYD delivered 1,255,637 NEVs, up 95.78 percent year-on-year.

BYD expects its net profit after non-recurring gains and losses for the first half of the year to be between RMB 9.3 billion and RMB 10.3 billion, a year-on-year increase of 206.99 percent - 240.00 percent.

The company expects basic earnings per share to be RMB 3.61 - RMB 4.02 in the first half, up from RMB 1.24 in the same period last year.

In the first half of 2023, the NEV industry maintained rapid growth, and BYD's NEV sales achieved strong growth from a high base in the same period last year, it said.

BYD's market share continued to increase, continuing to strengthen its leadership position in the NEV industry, it said.

Despite intensified competition in the automotive industry in the first half of the year, BYD continued to maintain a good level of profitability for its rising brand power, continuously expanding scale advantage and strong industry chain cost control capability, as well as the fall in upstream raw material prices, it said.

BYD's cell phone components and assembly business benefited from gains in the share of large customers and growth in emerging businesses such as NEVs and new smart products, it said.

The business saw improved capacity utilization and further optimization of its business structure to achieve a significant improvement in profitability, BYD said.

($1 = 7.1375 yuan)

BYD posts over 400% year-on-year Q1 profit growth