- BYD's third-quarter revenue declined by 3.05 percent year-on-year, a rare drop in recent years.
- Third-quarter gross margin stood at 17.61 percent, down 6.13 percentage points from the same period last year.
BYD (HKG: 1211) saw its quarterly net income plummet as sales declines led to an unusual revenue drop.
The Chinese new energy vehicle (NEV) maker reported third-quarter net income of RMB 7.82 billion ($1.1 billion), down 32.60 percent year-on-year, according to financial results released today.
This marks BYD's second consecutive quarter of year-on-year net income decline, though it represents a 23.08 percent increase from the second quarter.
After excluding non-recurring gains and losses, BYD's third-quarter net income stood at RMB 6.89 billion, down 36.65 percent year-on-year, indicating pressure on core business profitability.
The company's third-quarter revenue came in at RMB 195 billion, a 3.05 percent year-on-year decline -- a rare drop in recent years. This represents a 2.95 percent decrease from the previous quarter.
The revenue decline primarily stemmed from weakness in the automotive business.
As competition intensifies in the Chinese market, with rivals including Geely Auto (HKG: 0175) launching more models at aggressive pricing, BYD's new energy vehicle (NEV) sales growth has slowed significantly this year.
In the third quarter, BYD's NEV sales totaled 1,114,192 units, down 1.82 percent year-on-year -- marking the first year-on-year decline since at least the first quarter of 2021.
The company's operating costs in the third quarter reached RMB 160.64 billion, resulting in a gross margin of 17.61 percent.
This represents a 6.13 percentage point decline year-on-year, though it improved by 1.35 percentage points compared to the previous quarter.
Net income for the first three quarters totaled RMB 23.33 billion, down 7.55 percent year-on-year.
Revenue for the first three quarters reached RMB 566.27 billion, a year-on-year increase of 12.75 percent.
($1 = RMB 7.1122)
