Battery and carmaker BYD has announced that its net profit for the first quarter fell roughly 85 percent from the same period last year.
Total revenues in the first quarter slumped 35 percent to 19.68 billion yuan.
BYD’s total vehicle sales for the first three months plunged 48 percent from the same period in 2019 to 61,273 units. Of those sales, New Energy Vehicles accounted for 22,192 vehicles with electric and plug-in hybrid drive, which in addition to reduced sales due to the impact of COV-19, were also hurt by a decrease in government subsidies that went into place mid-2019.
With China reopening rapidly from the COVID-19 shutdown, BYD projected that revenues would rebound and predicted profits will increase 10 to 23 percent for the first half of the year.
BYD and Berkshire Hathaway
In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold.
For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.
© 2020 David Mazor