Chinese EV giant BYD flags huge jump in quarterly profit, shares surge

BYD, China’s biggest electric car maker, said third-quarter net profit likely more than quadrupled due to robust sales and a better product mix, sending its shares surging.

It estimated that net profit for the July-September quarter came in between 5.5 billion yuan to 5.9 billion yuan (S$1.08 billion to S$1.16 billion), or an increase of 333 per cent to 365.1 per cent from the same period a year earlier.

BYD’s Hong Kong shares gained 4 per cent on Tuesday morning while its shares in Shenzhen climbed 5 per cent.

The company, which is 19 per cent owned by Warren Buffett’s Berkshire Hathaway, said in a filing late on Monday that improved cost controls had also contributed to the jump in earnings.

Government incentives have helped sales of electric vehicles surge in the world’s biggest auto market.

BYD’s combined sales of pure electric and hybrid plug-in vehicles increased 250 per cent in the first nine months, easily outpacing a 110 per cent rise for the overall EV segment. REUTERS