Thunderstorm!The net profit of BYD, the “first brother” of new energy vehicles, plummeted by nearly 30%

On October 28, the financial report showed that BYD achieved operating income of 54.306 billion yuan in the third quarter, a year-on-year increase of 21.98%. Net profit was 1.269 billion yuan, a year-on-year decrease of 27.5%.

In the first three quarters, BYD achieved an operating income of 145.19 billion yuan, a year-on-year increase of 38.25%. Net profit was 2.44 billion yuan, a year-on-year decrease of 28.43%.

(Photo source company announcement)

Chip shortages cause automakers to cut production

According to public information, BYD semiconductor‘s main business is the research and development, production and sales of power semiconductors, intelligent control ICs, intelligent sensors and optoelectronic semiconductors, and its flagship product is the core of electric vehicles – IGBT chips. From 2018 to 2020, BYD Semiconductor achieved revenue of 1.34 billion yuan, 1.096 billion yuan, and 1.441 billion yuan respectively, but the net profit showed a downward trend year by year, 104 million yuan and 8511 million yuan respectively. 490,000 yuan and 58.6324 million yuan.

In the third quarter, due to the shortage of chips, car companies reduced production, coupled with the national energy consumption dual control policy on short-term production, it is inevitable that BYD’s operations and performance will be affected in the third quarter.

It is worth mentioning that NIO, a car company, suffered a sharp drop in sales in August due to a shortage of chips. Similarly, in September, Li Auto's sales also fell sharply due to a shortage of chips, and the original monthly sales target of breaking 10,000 also failed. .

Due to the impact of the new crown pneumonia epidemic, domestic car factories suspended production in February last year, and European and American car factories closed one after another in March. During this period, many car companies took the initiative to reduce chip orders, and chip manufacturers also received notices from car companies to cut orders and suspend shipments.

However, in the second half of the year, the global auto market unexpectedly recovered, and the sales of automobiles of various brands rebounded, but the main production capacity of upstream chip manufacturers has been invested in other industries. In addition, the global 8-inch wafer production capacity has been tight for a long time, and the supply of automotive chips is in short supply; the combination of various factors has led to the shortage of automotive chips.

Upstream raw material prices rise and costs become higher

Recently, many battery factories have announced price increases, and the price of steel, the main raw material for the production of automobiles, has also begun to skyrocket. Silicon materials, copper foil substrates, Electronic materials, silicon wafers, and special materials for components required to manufacture chips have launched a new round of price increases, and the price of chips has also increased by 10 to 20 times. So much up that makes the downstream almost unprofitable.

Although BYD is the NO.1 of China’s new energy vehicles, compared with Tesla, there is still a big gap. BYD’s gross profit margin was just over 10%, while Tesla’s gross margin was as high as 30% in the third quarter. Therefore, it is not unreasonable for BYD’s net profit to plummet.

Epilogue

Today, although the world is still in a state of chip shortage, there is no need to be too pessimistic. At present, my country’s domestic car companies are building a chip industry chain. Some leading domestic manufacturers such as Wingtech Technology (Anshi Semiconductor), CRRC Times Electric, Star Semiconductor etc. have been realized in-vehicle mass production supply.

The Links:   LM170E03-TLG1   LQ9PS01   LCD-PANEL