Profit of Chinese electric car manufacturer BYD in the first quarter up 632%, earnings up in the first half

BEIJING (Reuters) – Chinese electric vehicle maker BYD Co Ltd, backed by US investor Warren Buffett, announced a 632 percent rise in net profit in the first quarter, buoyed by strong demand for its vehicles with new energy.

The Shenzhen-based battery and auto maker, which has a joint venture with Daimler AG in China, announced last month that it expects earnings growth of nearly 800 percent in the first quarter.

The profit climbed to 749.73 million yuan (111.4 million US dollars), from 102.4 million yuan a year earlier, while profits had fallen sharply as a result of cuts in subsidies for electric vehicles.

According to BYD, the half-year net profit is expected to reach 1.65 billion yuan, compared to 1.45 billion yuan, compared with 479.1 million yuan in the same period last year.

"The new energy vehicles are expected to continue to sell well in the second quarter, and sales and revenues from new energy vehicles will continue to maintain strong growth," the company said in a stock market listing, adding that the new models Commercial and commercial vehicles would contribute to income.

The Chinese market for electric cars is booming, but profits in this sector have been held back by fierce competition between established companies and rival startups, as well as by Beijing's measures to reduce market subsidies in order to improve the market. 'improve product quality and standards.

The company sold 117,578 vehicles in the first three months of the year, up 5.2% from a year earlier. BYD, whose popular models include its Tang series electric cars, has announced plans to sell 650,000 vehicles in 2019.

Overall sales of electric cars in China jumped 61.7% in 2018 to reach 1.3 million vehicles, according to the China Automobile Manufacturers Association (CAAM). Electric vehicle sales reached 1.6 million this year.

Last month, China raised its standards for electric cars receiving subsidies and reduced the amount it is willing to provide to the companies concerned.