On the evening of March 26, BYD released its 2023 annual report. It achieved operating income of 602.3 billion yuan, a year-on-year increase of 42.04%; net profit of 30.041 billion yuan, a year-on-year increase of 80.72%; net profit after non-exclusion was 28.462 billion yuan , a year-on-year increase of 82.01%.
It is reported that in 2023, BYD achieved sales of 3.02 million vehicles, a year-on-year increase of 62%, and ranked among the top ten in global sales for the first time, and was the first car company to achieve annual sales of new energy vehicles exceeding 3 million vehicles.
It is worth noting that BYD’s automotive business gross profit margin reached 23.02% last year.
BYD Chairman Wang Chuanfu said in the financial report that BYD has steadily promoted its brand strength and overseas strategic layout, achieved rapid business development in the context of increasingly fierce industry competition, and has maintained its leading position in China's new energy vehicle sales for eleven consecutive years. And created a history of Chinese car companies ranking among the top ten in global sales for the first time.
The gross profit margin of the automobile business is as high as 23.02%
Regarding the growth of revenue and profits, BYD stated in the announcement that despite facing the challenges of intensifying competition in the automobile industry and the elimination of subsidies for new energy vehicles, the Group has continued to expand with its increasing brand power, rapidly growing overseas sales, and continued expansion. With its scale advantages and strong industrial chain cost control capabilities, coupled with the decline in upstream raw material prices, the Group's new energy passenger vehicle business continues to maintain good profitability.
In terms of business, BYD's automobile-related business has further increased its share of revenue.
The financial report shows that in 2023, BYD's mobile phone parts, assembly and other products will achieve revenue of 118.577 billion yuan, a year-on-year increase of 20%, accounting for 19.69% of total revenue, compared with 23.3% in 2022; automobiles, automobiles Related products and other products achieved revenue of 4834.53 billion, a year-on-year increase of 48.9%, accounting for 80.27% of total revenue.
It is worth mentioning that BYD's automotive business gross profit margin will continue to increase in 2023.
According to the financial report, the gross profit margin of BYD automobiles, automobile-related products and other products will reach 23.02% in 2023, an increase of 2.63% from 2022.
For comparison, Li Auto's vehicle gross profit margin in 2023 was 21.5%, Tesla's vehicle gross profit margin in the fourth quarter of last year was 17.6%, and Xpeng Motors' vehicle gross profit margin was -1.6%. In the traditional automobile industry, gross profit margin levels of 10%-15% are relatively common.
Overseas business becomes BYD’s strategic focus
Looking forward to 2024, Wang Chuanfu said that China's new energy vehicle market is expected to continue its strong growth momentum in 2024, entering an era of tens of millions of vehicles, and the penetration rate is expected to break through again. He said that BYD will closely grasp the market consumption trend, continue to promote the multi-brand matrix layout, and accelerate the process of business overseas.
In terms of multi-brand matrix strategy, BYD has currently formed five major brands: Dynasty, Ocean, Denza, Fangfangbao and Yangwang. Its products cover the high, middle and low-end price ranges and cover the needs of various consumer groups.
In terms of brands, its BYD Automobile Dynasty Network and Haiyang Network will sell 2.8774 million vehicles in 2023, a year-on-year increase of 55.3%; Denza Motors will sell 127,800 vehicles in 2023; Yangwang Automobile and Fangbao Automobile are both in Deliveries will officially begin in November 2023, and have received excellent market feedback. The single-month sales of U8 reached 1,593 units, and the sales volume of Fang Leopard in December was 5,086 units.
As far as the overseas strategy is concerned, BYD's overseas business will make rapid progress in 2023. In 2023, BYD's overseas sales reached a new high, with sales of new energy vehicles reaching 242,800 units, a year-on-year increase of 334.2%.
On the production side, BYD has also continued to deploy overseas production bases. In July 2023, BYD announced the establishment of a factory in Brazil, with a planned annual production capacity of 150,000 vehicles; in September 2023, Uzbekistan’s state-controlled Automobile Group announced that it would Established a joint venture with BYD. The first and second phases of the factory are planned to produce 500,000 units per year, and the output will reach 300,000 units after the completion of the third phase. In December 2023, BYD announced that it will build new energy vehicles in Szeged, Hungary. production base.
The financial report shows that in 2023, BYD's overseas business revenue will be 160.222 billion yuan, a year-on-year increase of 75.2%.
Currently, it can be seen that products, high-endization, and exports have formed BYD's three major growth drivers. Looking forward to 2024, the company is expected to continue to grow with its complete product layout and solid brand reputation, and overseas markets will bring new growth. It is expected that BYD's new energy passenger vehicle sales will reach 3.8 million units in 2024, of which export sales are expected to reach 500,000 vehicle.
Open Bitauto App, search for "real 100,000 kilometers long test" to see the most authentic vehicle long test report.