BYD's 2022 revenue hits another record high!

 

"BYD aims to become the No. 1 automaker in China by the end of this year." BYD Chairman Wang Chuanfu said during the earnings call.

The background information of this statement is that BYD just delivered a bright annual results report the day before, with operating income, net profit and other data reaching new heights.

Not only that, statistics show that BYD's 2022 annual cumulative sales of new energy vehicles have surpassed Tesla, with 1.869 million cumulative sales to regain the global new energy vehicle sales champion throne.

Undoubtedly, BYD has achieved a stage victory after announcing the discontinuation of fuel vehicles and full electrification last year.

4 times the profit, a year of money earned to cover the first 3 years

From BYD's 2022 annual report released on March 28, it basically got rid of the previous "revenue not profit" dilemma, to achieve a "double growth in revenue and profit", specifically：

BYD achieved revenue of $61.722 billion in 2022, up 96.20% year-on-year;

Net profit attributable to shareholders of the listed company $24.19 billion, an increase of 445.86% year-on-year;

Net profit after extraordinary gain or loss attributable to shareholders of the listed company of $2,276 million, representing a year-on-year increase of 1146.42%;

Net cash flow from operating activities of $20.499 billion, an increase of 115.13% year-on-year.

Among them, the bulk of the business revenue came from the automotive, automotive-related products and other products business, with revenue of RMB47.259 billion, up 151.78% year-on-year. In addition, revenue from the cell phone components, assembly and other products business was approximately $14,384 million, representing a year-on-year increase of 14.30%. The two businesses accounted for 76.57% and 23.30% of the Group's total revenue, respectively.
As for the automotive business, BYD will produce 1.87 million vehicles in 2022, up 152% year-on-year, and sell 1.8 million vehicles, up 150% year-on-year.

It is worth noting that the financial report shows that BYD's passenger car production capacity in 2022 is 1.25 million units, while the actual production is nearly 630,000 units higher, reflecting the overload of its factories in the last year.

In terms of growth in various figures, BYD's growth rate at the profit level last year was particularly impressive. In particular, net attributable profit reached $2.416 billion, up 446% year-over-year -- for comparison, BYD's net attributable profit is $235 million, $616 million and $443 million for 2019-2021, respectively.

Simply put, BYD will make more money in 2022 than it did in the first three years. Even more so, last year's fourth-quarter profit alone is already more than the sum of 2020 and 2021's annual profits - BYD's fourth-quarter 2022 net attributable profit was $1.064 billion, according to the data.

BYD's profits can not be separated from the improvement of the gross margin of the automotive section, the financial report shows that BYD 2022 automotive section gross margin reached a new high of 20.39%. If we roughly divide net profit by sales volume, BYD will earn an average of $1,309 per car sold in 2022, compared to $727 in the previous year, showing the speed of growth in profitability per vehicle.

Although the profit per vehicle has increased significantly, but BYD is not the most profitable car company.

In the matter of earning money, Tesla is still the head player, from the point of view of single-vehicle profit, Tesla has about $10,000 profit per car sold, BYD is less than one-seventh of Tesla.

In fact, compared with the gross margin performance of other mainstream car companies, BYD is basically in the leading level. Among them, the gross margin of Volkswagen Group is 18.5%, Toyota is 19%, Hyundai Group is 19.87%, and GM is 13.4%.

For BYD, 2022 will undoubtedly be a bumper year. But from the perspective of the automotive market, it is not a peaceful year. Against the backdrop of persistently high raw materials, recurring epidemics in China and an unstable international economic environment, China's auto market was once hit hard, and it was difficult for car companies in it to avoid being affected.

However, BYD presented a performance of "the bigger the storm, the more money". On the surface, BYD with a year's time to become a top student, but in fact, its ability to deliver this answer sheet, has long been laid out for many years.

BYD spent 15 years to lay the chessboard

As early as 2007, BYD already began to explore the design of charging piles and charging stations, and then along with the change of the automotive industry to the direction of new energy, BYD clarified the DM hybrid + EV pure electric synergistic development strategy.

In April last year, BYD announced that it would focus on pure electric and plug-in hybrid vehicle business and stop the production of fuel vehicles; it is enough to see its determination to transform to new energy.

From BYD's technology layout in recent years, it has spared no effort to invest in electrification and intelligence. From the intuitive financial data, only in 2022, BYD invested 20.2 billion in research and development, an increase of 90.31% year-on-year.

Under the heavy investment, BYD has also handed over a number of technology killer applications, including " blade battery ", CTB battery-body integration technology, super hybrid system DM-i, etc..

Some media have calculated an account, BYD new energy passenger car in 2019 battery cost of about 0.85 yuan / Wh, the use of ternary material battery, and change " blade " lithium iron phosphate battery can reach 0.6 yuan / Wh, if a pure electric model battery capacity of 60kWh, then each car only in the battery can save 15,000 yuan.

In 2022, BYD will be second only to CATL in battery shipments, with a 23% market share. In the field of new energy vehicles, where battery costs account for 60%, BYD's own research and production of blade batteries thus highlights the advantages.

Wang Chuanfu has said, BYD except glass, tires and steel plates can not be manufactured by themselves, all other parts will be "Made In BYD".

The long term layout of the industrial chain allows it to overcome the cost pressure brought by the rising prices of upstream raw materials while also circumventing the supply chain impact brought by the epidemic to a certain extent.

BYD has built five major automobile production bases in Xi'an, Beijing, Shenzhen, Shanghai and Changsha. When the Yangtze River Delta automobile industry chain was affected by the Chinese epidemic and came to a halt, BYD's multi-location production bases were able to amortize the risk factors and ensure certain production capacity.

In addition, BYD's layout on the plant is also another core competitiveness to support its rapid growth in sales. BYD has said that its first new energy vehicle off the line to complete the 1 million target took 13 years, while achieving 1 million to 2 million off the line only took 1 year, from the 2 million to 3 million has been able to shorten to half a year.

From BYD's 2022 model sales performance, BYD Song family, Qin, Tang and Dolphin are the four main models driving sales growth, accounting for more than 60% of total sales, covering the price range of 100,000-300,000 yuan. Especially the BYD Song, whose new energy SUV sales in 2022 exceeded 470,000, an increase of 356% year-on-year, even more than Tesla Model Y more than 150,000 units.

Comprehensive view, BYD's achievement is not the result of a single factor, but a concentrated outbreak of its long term layout, although it can not be separated from the development of the era of chance factors, but its every step of the child, is the key to constitute the final situation of the entire chessboard.