Shanghai (ZXZC)- BYD Company Limited said on May 22 that its subsidiary BYD Auto Industry Company Limited has received the state’s subsidy on new energy vehicle promotion amounting to RMB3.458 billion from Shenzhen Pingshan District Finance Bureau.

Of that, RMB3.126 billion and RMB332 million worth of funds were allocated to liquidate the subsidies that were supposed to be given in 2016 and 2017 respectively. 

BYD said the newly-received state’s NEV subsidy will help the company improve its cash flow, decrease the interest and financial expenses. Besides, it will also generate a positive effect on lowering the automaker’s debt-to-assets ratio. 

BYD reported on April 26 that its revenue in the first quarter jumped 22.5% year on year to RMB30.304 billion and the quarterly net profit attributable to shareholders of the public company skyrocketed 631.98% to RMB749.732 million.

The automaker expected the net profit for the first half of 2019 to surge over 50% over the year-ago period buoyed by strong demands for new energy vehicles (NEVs), the soon-to-be-finished upgrade of the Dynasty series models and the increasingly rich new energy commercial vehicle lineup. For the first half of the year, the total net profit attributable to shareholders is likely to reach RMB1.45 billion to RMB1.65 billion, soaring 202.65% to 244.40% compared with RMB479.1 million earned in the same period last year.

Even though BYD’s fuel-burning vehicle sales for the first four months plunged 44.85% compared with a year ago, it still achieved a year-on-year sales growth of 4.21% thanks to a vigorous surge of 123.13% in cumulative NEV sales.