BYD Financial Report: BYD's operating income in 2023 will reach 602.315 billion yuan, a year-on-year increase of 42.04%

BYD released its 2023 annual report.

In 2023, BYD achieved operating income of 602.315 billion yuan, a year-on-year increase of 42.04%; net profit of 30.041 billion yuan, a year-on-year increase of 80.72%; net operating cash flow reached 169.7 billion yuan, a year-on-year increase of 20.51%, all of which set a record high. Monetary funds have increased from 51.471 billion yuan at the beginning of 2023 to 109.094 billion yuan at the end of the year, accounting for 16.05% of total assets.

A total of 3.0244 million vehicles were sold throughout the year, a year-on-year increase of 62.3%

In terms of revenue sources, BYD's automotive, automotive-related products and other product businesses had revenue of approximately RMB 483.453 billion, a year-on-year increase of 48.90%; revenue from mobile phone components, assembly and other product businesses was approximately RMB 118.577 billion, a year-on-year increase of 20%; the two businesses accounted for 80.27% and 19.68% of the group's total revenue, respectively.

Specifically in the automotive business, BYD set multiple world records in 2023, with cumulative sales of 3.0244 million vehicles for the whole year, a year-on-year increase of 62.3%, once again becoming the global new energy vehicle sales champion.

In August 2023, BYD won the title of "the world's first automaker to achieve the production of its 5 millionth new energy vehicle". In November 2023, BYD held a ceremony to celebrate the production of its 6 millionth new energy vehicle at its Zhengzhou factory, also becoming the world's first automaker to achieve this milestone.

On March 25, 2024, BYD became the world's first automobile brand to achieve the production of its 7 millionth new energy vehicle.

BYD's automobile production and sales in 2023

Relying on the iteration and innovation of core technologies, BYD continues to improve its brand matrix. The high-end brand Yangwang and the professional personalized brand Fangchengbao were officially released this year, forming a multi-brand gradient layout constructed by BYD, Denza, Yangwang, Fangchengbao, etc., covering from home use to luxury, from mass production to personalization, meeting users' all-round and full-scenario car use needs.

The surge in BYD's overseas vehicle sales and sales is also a highlight of BYD's 2023 financial report.

In 2023, BYD's overseas sales of new energy passenger vehicles exceeded 240,000 units, a year-on-year increase of 337%, making it the Chinese brand with the largest exports of new energy vehicles in 2023.

As of now, BYD has entered 78 countries and regions around the world, and has invested in and built factories in overseas regions such as Brazil, Hungary, and Thailand, becoming a "new business card" of Made in China.

The surge in BYD's overseas auto sales also drove the company's overall overseas revenue to surge 75.2% year-on-year to 160.22 billion yuan in 2023. The proportion of overseas revenue in total revenue reached 26.6%, an increase of 5.03 percentage points from the same period in 2022.

BYD is also continuously strengthening its business in mobile phone components, assembly and other products. In December 2023, BYD Electronics completed the acquisition of Jabil's mobile electronics manufacturing business, one of the world's largest electronic manufacturing service and solution providers, for RMB 14.29 billion. This acquisition will expand BYD Electronics' smartphone component business.

In terms of new intelligent product business, BYD is optimistic about the market prospects of AI servers and will continue to actively invest in R&D resources and increase the layout of AI server-related products and solutions.

BYD will continue to deepen its cooperation with top customers in various segments. Sectors such as smart home, gaming hardware, and drones will maintain a good development momentum, driving the long-term sustainable development of the new smart product business.

The financial report also shows that in 2023, BYD invested 39.57 billion yuan in research and development, more than double the 18.66 billion yuan in the previous year. This key data is even 11.18 billion yuan more than Tesla, and the number of R&D personnel also increased by 47.6% to 102,844.

In the next 3-5 years, the share of joint venture auto brands in the Chinese market will drop from 40% to 10%.

On March 27, BYD held an investor communication meeting for its 2023 financial report. BYD Chairman Wang Chuanfu said at the meeting that the share of joint venture auto brands in the Chinese market will drop from 40% to 10% in the next 3-5 years.

Wang Chuanfu said that the new energy vehicle industry has entered the knockout stage, and 2024-2026 will be a decisive battle of scale, cost and technology. The accelerated launch of new energy products by Chinese automakers will erode the market share of joint venture brands. Therefore, in the next 3-5 years, the share of joint venture brands will drop from 40% to 10%, and the loss of 30% will also be the future growth space for Chinese local brands.

It is worth mentioning that on February 19 this year, BYD, a leading domestic automobile manufacturer, fired the first shot in the price war after the Spring Festival of the Year of the Dragon. Its two plug-in hybrid electric vehicles, Qin PLUS Glory Edition and Destroyer 05 Glory Edition, were launched on the market with a starting price of 79,800 yuan. Compared with the previous version of the Champion Edition, the price of the new version has dropped by 20,000 yuan.

Wang Chuanfu said that the main competitors of BYD Honor Edition models are fuel vehicles and joint venture brands. The sales volume is expected to exceed 300,000 units in March, with a market share of 16% in the passenger car market and 35% in the new energy vehicle market.

At present, Qin PLUS has encountered a production capacity bottleneck, and will further increase its production capacity in April and May. It is expected that the annual sales volume in 2024 will increase by at least 20% based on 2023.

Chip Intelligence