Chinese electric car maker BYD reports huge decline in 2012 profits

Nathan Andrada – Fourth Estate Cooperative Contributor

Shenzen, China (4E) – Chinese electric car and battery producer BYD announced a 94.12 per cent decline in profits year-on-year in 2012 amid a weak solar market, but predicted strong profits for the first three months of 2013.

The Shenzhen, China-based company said in a statement released on Sunday that net profit stood at 81.38mn yuan ($12.92mn) in 2012 compared to 1.38bn yuan in the previous year.

Last year’s business revenues tanked 4.04 per cent on-year to 46.85bn yuan, with a 95 per cent decline in basic earnings per share to 0.03 yuan, according to the statement.

The company said that revenues from conventional and electric and hybrid car sales saw steady growth in 2012, but its activities in cell phone parts production and assembly was hit by the declining market shares of its biggest clients.

China, the world’s largest auto market, posted a 4.3 per cent rise year-on-year in total sales last year to 19.31 million vehicles.

BYD said it sold 420,000 vehicles in 2012, describing the figure as a “slight decrease” from the previous year although it did not provide a comparative figure.

The company cited its lackluster solar energy business for last year’s profit contraction, adding that 2012 was a difficult year for the domestic solar PV industry.

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