Revenue ratio 34.84 % BYD Battery new energy development exceed expectations

On August 30, BYD released its first half of 2018 performance report. In the first half of this year, BYD's turnover was 52.163 billion yuan, an increase of 19 % year-on-year, and the net profit of listed companies was about 479 million yuan. BYD estimates net profit in the first three quarters of this year to be about 1.28 billion yuan -1.68 billion yuan.

It is worth noting that in the past three years, BYD's new energy vehicle sales have reached record highs. In July 2018, BYD's new energy vehicle sales exceeded fuel vehicle sales for the first time. BYD Chairman Wang Chuanfu said: "BYD's auto business will usher in a new round of growth cycle, and the company's profitability of new energy vehicles will be significantly improved in the second half of the year."

A new cycle of growth is coming.

BYD reported a 24.93 per cent year-on-year increase in sales for the first half of its auto business to 28,026 million yuan. Among them, the revenue of new energy vehicles reached 18.173 billion yuan, accounting for 34.84 % of BYD's total revenue, and it continues to be an important source of income and profit for BYD.

According to data released by the China Automobile Industry Association, BYD's market share in new energy vehicles is 18.3 %, and its market share in new energy passenger vehicles is 20.3 %.

Since this year, BYD's new generation of Tang, Yuan EV 360 and other models have received enthusiastic feedback from the market, in short supply. The new generation of Tang listed 7,000 vehicles in the first month of the month, accumulating orders of more than 20,000 vehicles. Qin DM, Song DM two models swept the domestic plug-in hybrid car market sales, runner-up.

In this regard, Wang Chuanfu gave an example: "If BYD's new generation of Tang sells 10,000 vehicles a month, it is a revenue of 25 billion to 30 billion yuan a year. If it doubles, this car alone can contribute to the company for a year. 50 billion-60 billion yuan in revenue. "

According to statistics from relevant statistical organizations, in the key new energy vehicle markets such as Beijing, Shenzhen, Guangzhou and Hangzhou, the market share of BYD exceeded 30 % from January to July this year, and the leading position in the industry is evident.

According to BYD's announced product plans, several heavy models will be launched in the second half of this year. Including the new generation of Song(fuel version, mixed version and pure electric version), Qin Pro(fuel version, mixed version and pure electric version), the new generation of Tang(pure electric version) and so on. These models use the "Dragon Face" family design language and are equipped with a DiLink smart network system, or will drive BYD car sales to soar.

Wang Chuanfu said: "The development of the new energy automobile industry exceeded expectations. Under the new model, BYD achieved rapid sales growth and continuous improvement of brand influence. Meanwhile, it is expected that the profitability of BYD new energy vehicles will be significantly improved in the second half of the year. In the field of fuel vehicles, BYD will continue to enhance its product strength, increase the market share of the fuel vehicle business, and promote the rapid growth of its business while effectively controlling costs."

Battery "Open" to Promote Ecology

Since the first announcement of the supply of power batteries to the outside world in 2017, the industry has continued to hear rumors that BYD supplies batteries to domestic and foreign vehicle companies. On July 5 this year, BYD and Chang 'an Automobile signed a strategic cooperation agreement in Shenzhen to jointly establish a power battery joint venture company with a production capacity of 10 GWh.

Cooperation with Changan Automobile has taken the first step in the external supply of BYD power batteries. Wang Chuanfu said: "This strategic cooperation is an important development of BYD's open supply and marketing system and has great strategic significance for the long-term development of the power battery business and even the group. At the same time, BYD expects to accelerate the opening pace in the future, introducing more domestic and foreign mainframe factories, realizing a series of strategic measures including power battery sales, establishing joint Ventures, and introducing strategic investment, accelerating the development of the power battery business and consolidating the industry's leading position.

In August, Wang Chuanfu revealed that BYD's monthly battery capacity can only supply 20,000 new energy vehicles. If the production capacity is sufficient, BYD's monthly capacity of new energy vehicles can be increased to 30,000 to 40,000 vehicles.

This also amply proves that in the external and internal supply of batteries, it is actually possible to coordinate and share costs through large-scale effects. BYD and its clients will benefit. BYD has so far accumulated a wealth of customer experience in the business direction of battery B2B, and it is believed that this relationship will be further deepened as more partners join.

BYD is rapidly increasing its power battery capacity in the face of strong demand for it and the outside world. In addition to the establishment of a joint venture company with Chang 'an Automobile, in June 2018, BYD announced that the power battery factory with an annual capacity of 24GWh was officially offline in Qinghai. In addition, public information shows that BYD and Chongqing Laoshan District signed an investment cooperation agreement in August 2018 and plans to build a power battery project with an annual capacity of 20 GWh.

According to the plan announced by BYD, its power battery capacity can reach 60 GWh by 2020.

Bloomberg new energy estimates that global demand for power batteries will exceed 1500 GWh in 2030, when global annual sales of new energy vehicles will reach 28 %; It is estimated that the annual sales volume of new energy vehicles will reach 20 million vehicles in 2025 and more than 42 million vehicles in 2030. Between 2020 and 2030, the annual compound growth rate reached 20 per cent.

Real progress of rail transit

Compared with the new energy car and battery business, rail transit business is another aspect of BYD. According to BYD, it has won orders from several cities at home and abroad since the launch of the cloud track in October 2016.

The technology is BYD's DNA and core competitiveness. As a R&D team of BYD's more than 1,000 people for 5 years, the "cloud track" has invested 5 billion yuan in the successful construction of a rail transit product brand, which is a type of cross-seat monorail. It is one of the better solutions for rail transit landing modes with medium and small traffic volume so far.

According to the relevant standards of article 52, at present, there are more than 200 cities in China that meet the construction of trams, light rails and subways. It can thus be seen that the current market cake for small and medium-sized rail transit is very large, giving BYD and manufacturers and operators interested in farming this market a lot of opportunities.

As of July 2018, BYD's straddle-type monorail (cloud track) project has been researched by municipal government leaders in more than 100 cities around the world. In many cities in China, cloud-track cooperation has been signed, and the Yinchuan Huabo Park section has already been installed. Open to traffic. At the same time, BYD has actively expanded its overseas market and has signed strategic cooperation agreements with Brazil, the Philippines, Egypt, Morocco and Cambodia. In addition, it is also in talks with several cities (countries). In May of this year, BYD announced that it won the bid for the Salvador rail transit project in Brazil, amounting to approximately 689 million US dollars.

With the introduction of relevant national policies, in the future, domestic and foreign rail transit projects have landed one after another, and it is expected that BYD's development will further open space.

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