A brief description of BYD's power battery was pressed by the giant.

The industry is at the time of new energy vehicles. BYD, new energy vehicles leading enterprise, got into the whirlpool of profits collapsed because subsidies, decline in profitability. In the first quarter, profit fell 83%, which is expected in the first half year the profits continue to slump. It seems that BYD is still difficult to escape in the short term.

Subsidies have tasted the sweet of BYD, although the "pot" of falling profits to the subsidies to fall, than wait for subsidies, old, weak profitability, is now BYD had to set out to solve the problem, even once let BYD proud power battery Ningde, is now being the competition era is far off, BYD on all fronts, crisis.

Model structure imbalance

With only two or three car "appearance"

Because of a new generation of the Qin dynasty, tang is not listed, in phase models shift of BYD, currently on the market competitiveness of the strong models is not much.

In April this year, Qin, e5 and song DM finished just above five thousand, four thousand and three thousand respectively, continuation of the previous performance, but for generation of tang, sales have fallen to less than 200 units, falling for months bluffs type, sales list, has not had in pin broken three thousand e6.But for terminal market, whether the car is really going to individual users?

SMW reporter has visited more than Guangzhou BYD 4 s inn understands, Qin dynasty and song dynasty DM two plug-in electric hybrid vehicles, new energy vehicles is still relatively popular store, in addition to the countries and to add up to 33000 yuan, tonic BYD official also to ten thousand yuan price of plug mixed models, "many do, buy Qin customers about car, buy a song of DM is the average family car. "Of 4 s shop clerk told reporters, very little customers buy pure electric vehicles, "after all, pure electric vehicles are limited range, charging pile." Visit process, perhaps is to work day, reporters in several stores for about 20 minutes, all can't see the door to customers. Considering the network about Qin, e5, e6 cars and purchase properties, its business, the nature of the public, often greater than the "private cars" attribute, therefore, despite more subsidy, but in 4 s shops, almost invisible e5, e6 two pure electric vehicles.

E6, for example, the main taxi market, sales of ups and downs, in December 2017, e6 sales as high as 3818, in January of this year, sales immediately dropped to 29 vehicles, sales of "evaporating" within a month. SMW reporter learned that refer to related information in December last year, Shenzhen west lake with BYD co., LTD. Signed a purchase agreement, from purchasing the latter 3191 all-electric e6, in fact, this part of the new energy vehicles is meet the requirements of Shenzhen electrification of the taxi industry, and is a typical local procurement, to reflect the real market competitiveness.

Above all, the theory of single new energy cars, BYD is the Qin dynasty, song DM and e5 to support the sales, but really can fall to the ordinary individual users, be bought, writers use only song DM, and part of the share of other cars.

Traditional fuel vehicles, only sold 245000 vehicles last year, fell sharply 25% of BYD, compared to the same this year for a small "victory", the reason is that the song MAX sales expansion. March and April this year, the car sales break through 15000 and 14000, respectively. Reporters visited during the process of 4 s shops, also saw the store's best song MAX basic position. But in addition to song MAX, BYD other fuel models have severe downturn, sales fell to four thousand F3, substantially is BYD sales ranked second fuel vehicles, to build little chance, had in popular song fuel version of autonomous SUV, sales of the same size as before.

In profits collapsed vortex

Subsidies to reduce thoroughly exposed the BYD's short?

In a few years ago, new energy vehicles savage growth smoothly for BYD in the revenue and profits soar, in 2015, for example, BYD's $2.823 billion net profit, surged 551% from a year earlier, when the BYD over Nissan, tesla, such as new and old car companies, for the first time to become the world's new energy vehicles pin, subsidies, subsidies for the receivable is fast, more make the early new energy vehicles "gay" a handful of independent brands, industry and even a voice say, subsidies have had considerable income alone, selling cars cannot earn money is secondary.

But as the new energy vehicles subsidies TuiPo, used to enjoy a large amount of subsidies for car companies, seems to be out overnight results of pressure. BYD has dropped nearly twenty percent of profits last year, and more than eighty percent of the decline in the first quarter this year, finally by the Shenzhen stock exchange a paper about.

In the past, BYD has specific figures were afraid of subsidies, and a lot of different car companies, their earnings on little directly reflect the data of subsidies. In BYD, accounts receivable, long-term tens of billions of "lying", mainly for new energy vehicles in subsidies and receivable models, profit, by contrast, can only say that dwarfed. Although the official don't talk about subsidies, but analysis of BYD in 2017 and 2018 earnings in the first quarter, and it is not hard to see BYD is highly dependent on subsidies.

SMW reporter understands tidy BYD's earnings in 2017, four quarter of 2017 business activities generated cash flow net - 2.418 billion yuan, 1.052 billion yuan respectively, 4.166 billion yuan and 56.7.2 billion yuan, the data is very "jump", BYD's explanation is that 2016 new energy vehicles incentives pays slow, receivable balance of incentives to increase obviously, and then right

2016 annual business activities generated cash flow net negative impact. Subsidies, in other words, the speed of collection of payment, to a large extent determines the BYD's cash reserves.

In 2018, the gap is more obvious, although a lot of to sell cars in the first quarter, BYD, revenue growth of 17.54% year-on-year, but net profit fell sharply 83%, "influenced by subsidies TuiPo, including electric bus and new energy car of new energy automotive business overall decline in profits have more than a year earlier. "BYD with and without money, how much money can earn, and subsidies linked together, just when subsidies TuiPo, BYD's profit ability in the "big diving".

But if further understand BYD results can also be found, although there are still 102 million yuan net profit, but excluding non-recurring gains and losses attributable to shareholders of listed companies 328 million net profit but there was one of the losses, and typically, non-recurring profit and loss, including the government subsidies, that is to say, after the deduction of government subsidies, BYD appeared a lot of losses, the data also show that in the first quarter this year, BYD get government subsidies of 630 million yuan, subsidies and a lot of cases, the performance decline, in declining subsidies, BYD's own profitability, equally worrying, BYD's recent announcement also mentioned many times, the traditional fuel cars by the decline in profitability.

Battery of business

Power lithium battery installed capacity has been cast to Ningde era

Can get such a high voice in the field of new energy vehicles, associated with BYD to master "SanDian" technology system, BYD new energy automobile enterprise in the car, the only depend entirely on the lithium battery supply of their own enterprises, the lithium battery in BYD's business landscape, occupies a pivotal position. Once install with phosphoric acid lithium battery as the first of BYD, was under age of Ningde giants such as pressure.

In 2017, power lithium battery installed capacity, the number has no suspense was unicorn enterprise commandeer Ningde era, although BYD still ranked second with 14.98% market share, but has been cast to Ningde era. The SMW reporter learned from true lithium research, in the first quarter of 2018, Ningde the lithium battery installed capacity is now half of The Times, far more than BYD, such as the porch high-tech enterprises.

From the led industry, to form a pair of giant Ningde era, and then to be off, although power battery head enterprises is more and more concentrated, but from the point of market share, BYD now have only themselves to "alert" to the second seed not robbed. Lithium, true research, chief analyst at Mo Ke told SMW reporter, if from the aspects of quality, domestic lithium electricity only BYD with CATL era (Ningde), "but BYD is in front of the CATL lose competitiveness, there are two main reasons, one is the enterprise BYD is building cars, this makes the other car companies to have scruples; On the other hand, BYD's three yuan route development lags behind, keep up with the trend."

Mo Ke said "three yuan route", it is BYD on lithium battery technology route one must carry pain points. In the past, BYD has been to produce phosphoric acid lithium battery is given priority to, but in recent years, more and more recognized by the market ternary lithium battery, the former in energy density, the range is less than the latter, although BYD has now joined the ternary lithium battery, and consciously enhance the ternary lithium battery installed proportion (more than subsequent BYD's car will also carry the ternary lithium battery), but with a late led to BYD lost the initiative. In 2017, the ternary lithium batteries has completed the counter attack, new energy vehicles by 76% of installed capacity, low density of phosphoric acid lithium battery, can only play a role in the field of commercial vehicles using large volume battery.

More cannot be ignored is that the subsidy policies, according to the 2018 range, energy density, and hundreds of kilometers of power consumption of the three factors determining the subsidies of pure electric vehicles, obviously lithium iron phosphate batteries with the several requirements.

In addition, BYD chairman Wang Chuanfu said since last year, will provide power lithium-ion batteries, but the current status of your battery outside for BYD, than the preset rapidly, in a statement the ministry last month, according to two of Dongfeng commercial vehicle carrying the BYD phosphate lithium battery, but in the field of passenger cars, BYD battery outside for progress, not too much news.

Transformation for BYD's battery, Mo Ke, points out that nowadays, BYD is three yuan was forced to step by step to camp, "last year was inserted to mix all passenger car use ternary lithium batteries, and expanded to pure electric passenger cars this year, the future may extend to passenger cars and car, but was forced to another meaning, are reluctant to heart unwilling feelings, such work attitude, predictable results." Recently listed potential room 500, BYD range in the big family of products, its use, is the ternary lithium battery.

However, BYD in response to the Shenzhen stock exchange, also for their own battery strategy has a "apology", "because the company power battery production line belongs to the flexible configuration, according to market demand for and ternary lithium iron phosphate batteries and adjust the product structure, to meet the different needs of the future market."

Save your

To accelerate the development of products, and to upgrade

Double for subsidies and profits drop, BYD early response to the Shenzhen stock exchange, also mentioned some self-help measures, including increase of 2018 new energy vehicles subsidies standards technical threshold requirements, speed up product development, in the field of pure electric passenger cars, for example, introduced the energy density of more than 140 wh/kg models, will also get adjusted factor is 1.1 times that of new energy vehicles subsidies. A new generation of the Qin dynasty, and Max version of new energy vehicles, such as song will also be on the market in this year. It is not hard to see, BYD is still in the target model upgrade to get more subsidies, and the present models will gradually upgrade.

In 2018, is a joint venture automakers and new building cars a year of aggressively into the new energy. Qin, tang has been quiet for a long time in the market, the upgrading of models can make enough BYD have enough leverage against competitors? The answer is still unknown.

The page contains the contents of the machine translation.