(Yicai Global) Aug. 29 -- China's largest new energy vehicle (NEV) maker BYD Co. [SHE:002594; HK:1211] saw its net profit fall by 23.75 percent annually to USD2605 million (CNY1.72 billion) in the first half, a drop that may be attributable to the Chinese government's reduction in NEV subsidies.
Revenue edged up 0.2 percent per year to USD6.8 billion, while its earnings per share plunged by 32.18 percent yearly to USD0.1, per its interim results announced yesterday.
The sharp decline in subsidies will significantly affect the NEV industry in the short term. In the first quarter, 56,000 NEVs sold in China, BYD said, down 4.7 percent annually. The industry has rebounded since the second quarter, however, and regained some momentum.
The carmaker maintained its leading position in China's NEV industry despite policy adjustments and intensifying market competition. BYD holds a 19.5 percent share in the sector, it said. Revenue from its NEVs grew 2 percent per year to about USD2.4 billion, accounting for 35 percent of its total revenue, data from the China Association of Automobile Manufacturers shows.
Its revenue from phone components and assembly business rose 10 percent annually to USD2.75 billion, while its revenue from rechargeable batteries and PV business fell by 13.4 annual percentage points to USD5.46 billion.
BYD expects NEVs to be more attractive to consumers in future. It will therefore hasten its research and development and introduction of new models to supply rapidly-increasing market demand.