BYD Announces Annual Report: Actively Expanding Iron Cell Capacity

BYD released its annual report on March 29. In 2014, the company achieved operating income of 58.196 billion Yuan, a year-on-year increase of 10.09%, net profit of 434 million Yuan, a year-on-year decrease of 21.61%, and earnings per share of 0.18 Yuan.

Among the various businesses, the growth of new energy vehicles and mobile phones has been outstanding. The company said that thanks to the strong support of national policies and the continuous improvement of the comprehensive competitive advantages of the Group's new energy vehicles, it is expected that the Group's new energy vehicle business will continue to maintain strong growth momentum in the first quarter of 2015. The company also expects net profit in the first quarter of 2015 to reach 100 million Yuan to 150 million Yuan, an increase of 735% to 1153.55%.

According to the annual report, the revenue of BYD Auto and related products business was approximately RMB 27.834 billion, up 3.03% year-on-year. The revenue of new energy vehicle business increased by about 6 time year-on-year, accounting for 27.05% of the Group's auto business income. The company expects that the newly expanded battery capacity will be gradually put into production in the first quarter of 2015, and will provide sufficient iron battery capacity to meet the demand for new energy batteries in the future.

In terms of layout planning, the company will launch the “7+4” layout in 2015, covering seven major target markets including private cars and buses, and four special vehicle markets, and will take advantage of the breakthrough opportunities of independent brands in the SUV market. Expanding new energy vehicles from cars to SUVs and enriching the Group's product range.

According to the statistics of China Association of Automobile Manufacturers, in 2014, China's new energy vehicles sold a total of 74,800 units, an increase of 323.8% year-on-year, of which plug-in hybrid vehicles sold 29,700 units, a substantial increase of 878.1%. BYD's market share of new energy vehicles reached 27.9% last year, and its share in the plug-in hybrid market reached 49.6%, ranking first. Subject to battery capacity, a large number of new energy vehicle orders were backlogged during the reporting period.

With the support and promotion of the policy, the charging facilities are also expected to be further improved. In May 2014, State Grid announced the introduction of social investment to participate in the construction of electric vehicle charging facilities to solve the problem of insufficient charging facilities. Beijing, Shanghai, Hefei and Wuhan have also clearly stated the requirements for the proportion of new energy vehicle charging facilities in new residential areas and parking lots. BYD will develop a circular stereo charger that intensively uses land, and actively seeks cooperation with third parties to accelerate the popularization of charging facilities. In addition, the company has been approved to establish a joint venture with Xi'an Bank to develop auto finance, provide car loans and other related services for dealers and consumers, and will promote the Group's auto sales and deepen the auto finance industry.

Revenue from mobile phone components and assembly business was approximately 24.48 billion Yuan, a year-on-year increase of 23.21%. Revenue from secondary rechargeable batteries and photovoltaic business was approximately 5.339 billion Yuan, a year-on-year increase of 0.29%. During the reporting period, the plastics and metal blending technology developed by the company was gradually promoted in the high-end smart phone market, and orders for high-end smart phones from several large customers were realized and mass production was achieved. In February 2015, BYD announced the sale of flexible components such as flexible circuit boards, LCD modules, and camera modules to strengthen strategic focus and accelerate business transformation and upgrading.

The continuous development of mobile intelligent terminals has brought momentum to the development of the secondary rechargeable battery industry. BYD will continue to explore the application range of lithium-ion batteries and nickel batteries, improve the performance and quality of iron batteries, and actively expand the production capacity of iron batteries to meet the huge demand for explosive growth of new energy vehicles. The solar business strives to achieve breakeven in 2015.

The page contains the contents of the machine translation.