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BEIJING, October 17  (TMTPOST)— BYD Co., the Chinese electric vehicle (EV) company backed by Warren Buffett ’s Berkshire Hathaway for more than a decade, posts much-better-than-expected performance this year.

Source: Visual China

BYD estimated net income for the third quarter of 2022 between RMB5.5 billion (US$765 million) to RMB5.9 billion, representing a year-over-year (YoY) increase range of 333.60% to 365.11%, while the net income after deducting non-recurring profit or loss to be RMB5.07 billion to RMB5.8 billion, rising 879.37% to 1014.57% from a year earlier, according to a filing with the Hong Kong exchange on Monday.

During the first three quarters of the year, BYD forecasted the net income to increase by 272.48% to 288.85% to RMB9.1 billion to RMB9.5 billion, while the net income adjusted by deduction of non-recurring profit or loss to be RMB8.1 billion to RMB8.8 billion, a YoY increase between 813.5% to 892.77%.

The financial performance suggests BYD has already had shockingly upward profitability this year. The profit in the quarter ended September 30 alone is just shy of RMB9.97 billion, the securities firms’ consensus forecasted profit of the for the whole year . Its net income per vehicle in the third quarter rose to more than RMB10,000, about 28% more than the previous quarter.

In the filling, BYD attributes better profitability to improved cost control capability and product structure adjustment, and underscores its strong growth in sales and continued record-setting in sales volume, which drove “significant improvement in earnings and effectively relieving the pressure on earnings brought by the rising prices of upstream raw materials”. The company also noted the accelerating upward trend of the new energy vehicle (NEV), a sector including battery electric vehicles and plug-in hybrid electric vehicles, despite the severe economic settings, the pandemic spread, extreme high temperature weather, high commodity prices and other unfavorable factors.

September saw BYD first sold more than 200,000 vehicles, breaking its monthly sales record for the seventh consecutive month. The EV giant maintained triple-digit monthly sales growth since entering into 2022, even it has ceased the production of cars powered only by internal combustion engines since March, completely shifting to production of battery electric vehicles and plug-in hybrid electric vehicles.

BYD is reinforcing its lead in EV industry by sales. In the first three quarters of 2022, BYD sold about 540,000 NEVs, nearly 200,000 units more than Tesla’s sales in the same period.  

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