BYD Co.’s net income rose to the top end of guidance it gave last month as record output and sales shielded China’s biggest electric-vehicle maker from COVID disruptions and supply-chain pain.
Net income in the six months through June tripled from a year earlier to 3.6 billion yuan ($521 million), the Shenzhen-based company said in a filing Monday. BYD had forecast net profit of between 2.8 billion and 3.6 billion yuan.
Revenue was 150.6 billion yuan, up 66 percent from a year earlier thanks to record monthly sales. Analysts forecast revenue of 166 billion yuan, according to data compiled by Bloomberg.
BYD, which is backed by Warren Buffett, has managed supply-chain disruptions better than many others, including homegrown rivals Nio Inc., XPeng Inc., and Li Auto Inc. as it makes components such as batteries and semiconductors. The company also avoided the majority of Shanghai’s COVID lockdowns because it has factories elsewhere.
BYD sold more new energy vehicles in the first seven months of this year than in 2020 and 2021 combined. The group’s share of China’s NEV market reached 24.7 pervent in the first half, the company said in Monday’s filing, citing data from the country’s automobile association.
The company listed challenges including COVID-19 and the conflict between Russia and Ukraine that pushed up commodity prices and slowed economic growth. Sporadic virus outbreaks in China aggravated supply-chain tensions and increased uncertainty, it said.
“China’s economy has seriously deviated from the normal track” and the development of the country’s automobile industry “has been severely compromised,” BYD said. Still, sales of NEVs are growing, helped by supportive government policies, it said.