In the third quarter, revenue increased but profits did not. What happened to BYD?

In the third quarter of this year, BYD's sales increased significantly, but its profits showed a downward trend.

BYD's third quarter performance report shows that BYD's revenue in the first three quarters was 88.99 billion yuan, a year-on-year increase of 20.35%, and its net profit was 1.527 billion yuan, a year-on-year decrease of 45.3%; the revenue in the third quarter was 34.83 billion yuan, a year-on-year increase of 20.54%, and its net profit was 1.05 billion yuan, a year-on-year decrease of 1.92%. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was approximately 508 million yuan, a decrease of 40.46% over the same period last year.

In fact, profits across the automotive industry are on a downward trend.

In the first half of this year, 23 listed vehicle manufacturers achieved a total operating income of 781.224 billion yuan, a year-on-year increase of 13.12%; among them, 14 companies saw a year-on-year increase in revenue.

At the same time, the 23 vehicle companies achieved a total net profit of 32.154 billion yuan attributable to shareholders of listed companies in the first half of the year, a year-on-year decrease of 4.88%. Among them, 13 companies experienced a year-on-year decline in net profit and increased losses in the first half of this year.

Changes in the country's subsidy policy for new energy vehicles have also had an impact on car companies.

Recently, the Ministry of Industry and Information Technology announced the "Preliminary Review (Supplement) of Subsidy Funds for the Promotion and Application of New Energy Vehicles in 2017 and Previous Years", and 7,782 vehicles did not meet the subsidy requirements and were reduced. Among them, 5,672 BYD vehicles were reduced.

BYD's new energy vehicles are very popular in the market. As the bottleneck of battery production capacity is gradually resolved, BYD's new energy vehicle sales will increase significantly this year. The hot sales of BYD Song Max and the launch of the new generation Tang fuel version and Qin Pro fuel version have kept BYD's fuel vehicle sales stable.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.