Shulou(Shulou.com)11/24 Report--

In recent years, trendy energy vehicles are gradually driving to the development of the highway, whether the transformation of traditional car companies, or the addition of new forces, make this industry with unlimited prospects become more hot.

Among the many participants in the new energy industry, one brand is very unique: it was born in the era when traditional cars were absolutely mainstream, but it had a profound "new energy gene" at the beginning of its establishment, and it is also one of the earliest pioneers of electric vehicles. It is BYD.

At a time when the wave of new energy vehicles is vigorous, BYD is also rightly harvesting the fruits of its insistence on exploration as a forerunner in the industry. Not long ago, BYD announced its results for the third quarter of 2022, and the excellent performance once again attracted the attention of the whole industry.

BYD is difficult to stop from the past to the future. according to the financial report, BYD achieved revenue of 117.081 billion yuan in the third quarter of 2022, an increase of 115.59% over the same period last year. The net profit belonging to shareholders of listed companies was 5.716 billion yuan, an increase of 350.26% over the same period last year.

At the same time, from January to September 2022, BYD achieved a total revenue of 267.688 billion yuan, an increase of 84.37 percent over the same period last year. The net profit attributed to shareholders of listed companies was 9.311 billion yuan, an increase of 281.13% over the same period last year.

At the same time, according to the data released by the Federation of passengers, Biadu's cumulative sales of new energy vehicles reached 1.1753 million in the first three quarters of this year, an increase of 249.6% over the same period last year, making it firmly at the top of the domestic new energy passenger vehicle list. By contrast, former sales champion Tesla sold a total of 908600 vehicles in the first nine months of this year.

In short, BYD has handed over a report card that is very good in all aspects and can play, highlighting the deep strength they have shown over the past nine months. At the same time, it also makes the outside world look forward to the next development of YD.

As for the development of BYD in the foreseeable future, CTOnews.com also remains positive. Combining the highlights of this financial report and the achievements made by BYD in the past period of time, CTOnews.com summed up the following factors.

First of all, this Q3 financial report shows the progress of BYD in terms of profitability. Previously, BYD was often questioned on the issue of profits, but BYD's profit performance improved greatly in the third quarter.

In the third quarter, for example, BYD achieved a gross profit margin of 18.96%, an increase of 5.63% year-on-year and 4.57% month-on-month. As for the gross profit margin of the automobile business, Q3 rose to 22.75% from 15.6% and 17.8% in the previous two quarters, which is not much different from Tesla's 27.9%. At the same time, Q3 BYD's net profit margin also reached 4.9%, an increase of 2.63 percentage points over the same period last year and 1.3 percentage points higher than the previous month.

Both gross profit and net profit rose sharply, indicating that BYD's profitability has increased significantly. This highlights the scale effect of BYD's growing car sales. Automobile is an industry that pays more attention to scale effect, the larger the scale, the stronger the control over cost, and once scale effect is formed, it will have a certain stability, which has far-reaching significance for BYD in cost control in the future.

The second point is also related to profitability, that is, bicycle profits. The net profit of 2022 Q3 BYD is 9900 yuan, + 2900 yuan from the previous month, + 5400 yuan from the same period last year, which is about four times higher than the 2000 yuan in the first quarter of this year.

And, the future BYD bicycle profitability is expected to continue to enhance, the current BYD high-end products Han series cars and Tang series SUV configuration versions have reached 200000 yuan. Not only that, BYD also announced its high-end brand "look up" on November 8, which will focus on the market with a price of more than 500000 yuan in the future. The first model of the new brand is expected to go on sale in 2023, coupled with the full takeover of the Tengli series this year, the Tengli D9 has also begun delivery. We have reason to believe that BYD will do more in the high-end market to further improve its profitability.

The third point is that BYD is also bearing fruit in expanding overseas markets. At present, BYD's overseas passenger car layout has spread all over Europe, Latin America, the Middle East, East Asia and Southeast Asia and other markets. Their Plus (right-hand version) was booked in Thailand in early October, and the car sells for 119.9, 000 baht (about 226000 yuan) in Thailand. Also in October, Yuan Plus made its debut in Colombia, another Latin American country after Costa Rica, Uruguay and Dominica.

At the same time, BYD said it had officially entered the Brazilian passenger car sector this year, with nine stores in Brazil and is expected to open operations in 45 cities by the end of this year and 100 stores by the end of 2023.

In Europe, BYD unveiled Yuan Plus (ATTO 3), Han, Tang and SEAL models at the Paris Motor Show in October, and three more models were pre-sold.

There are many similar movements, and overseas market expansion is advancing methodically with the rhythm of "small steps and fast running, steady and steady", which is also very important for the future development of BYD.

There is one last detail worth mentioning. According to the relevant data of the Federation of passengers, in the first three quarters of this year, 2 of BYD's top 10 models were on the market for less than a year, and 6 models were on the market for less than two years. They are all in a period of rising production capacity and sales, at least in the following short-term sales performance. BYD has plenty of potential.

Behind the rapid development, the driving force of BYD's growth excellent financial data let us see BYD's invincible development in the past year, and through the financial report and the recent layout of BYD, let us be full of confidence and expectation for the next development of BYD. This may make people wonder, what is the secret of BYD's rapid growth all the time? How does it constantly refresh itself?

CTOnews.com believes that there are two core reasons for this problem.

The first and most important is BYD's continued investment in core technology research and development.

For example, for the whole of 2021, BYD's R & D spending was as high as 7.991 billion yuan, while according to the Q3 financial report, BYD's R & D spending in the first three quarters of this year has reached 10.87 billion yuan, far exceeding the R & D expenditure for the whole of last year.

Founded in 1995, BYD has become the second largest manufacturer of rechargeable batteries in the world in 2003 and has officially embarked on the research and development of electric vehicles in that year. After nearly 20 years of technological precipitation, they are now the only car companies in the world that can master the core technologies of the new energy industry chain, such as batteries, motors, electronic controls and automotive specification semiconductors.

At present, BYD has 11 research institutes, 40,000 R & D technical personnel, 340,000 patent applications, and five core technologies that BYD is proud of, including blade battery, IGBT chip, DM-i hybrid technology, e-platform 3.0 and the newly released CTB battery integration technology.

Take the DM-i super hybrid technology as an example, it was launched in March 2021, based on ultra-safe large capacity battery and high-performance high-power off-line motor as the design basis, driven by high-power and high-efficiency motor, the fuel consumption can be as low as 3.8L / 100km and the comprehensive mileage can break through 1200km. After listing, it is widely recognized by the market by virtue of its low price, low fuel consumption, low noise, strong power and other advantages, accounting for more than 55% of the mixing market.

Another example is BYD's e-platform 3.0, which is a solution launched by BYD in the direction of a complete set of integration of pure electric vehicle parts, through the enhancement of blade battery, eight-in-one electric powertrain, electric drive boost and fast charging technology, it has become an electrified platform that is better than domestic traditional car companies in terms of battery life, zero acceleration, charging 5 minutes and so on.

An important reason why BYD can maintain a steady stream of technological innovation capability is its internal "technical fish pond" mechanism. Whenever BYD enters a new field of technology, it will try to get through the core technology, even if it is not of practical value at that point, it will study hard in order to make a breakthrough. As a result, under the accumulation of innovation again and again, they have formed a "fish pond" for "storing" rich technological categories, and when the industry is in place and the time is ripe, they can "fish out one" at any time. Just because of this, they can calmly cope with the changes of market trends and technological trends, and walk at the top of the tide all the time.

The second reason is that BYD's whole industry chain layout strategy makes it build a set of perfect vertical supply chain system, thus has a strong anti-risk ability.

For example, in terms of vehicle manufacturing, BYD has ten vehicle production bases in China, which are located in Shenzhen, Xi'an, Changsha, Zhengzhou, Changzhou, Jinan, Fuzhou, Shenshan, Xiangyang and Hefei. Jinan, Hefei, Zhengzhou and Shenshan are new production capacity, and can realize the mode of "spare parts + whole vehicles". At the same time, BYD has set up battery and chip factories around some important production bases. To provide key core raw materials without complex cross-regional collaboration.

These production bases adopt a fractional layout in China, and the capacity of each production base is relatively independent and does not have to depend on each other, so that the overall production capacity will not be affected because of problems in some regions.

In the specific production of vehicle parts, first of all, BYD has a perfect large-scale automatic production line on the core three power system, which is self-sufficient, which is equivalent to taking the lifeline of electric vehicles in their own hands.

Specifically, the key motor, electric control, power supply, as well as transmission, reducer and other key components of the new energy vehicle are all designed and produced by BYD's Fudi Power Co., Ltd. The battery is the responsibility of Fudi Battery Co., Ltd.

In addition, BYD also has Fudi Mould, Fudi Vision, Fudi Technology and other companies, which are respectively responsible for the design and manufacture of automotive moulds, frames, parts, automotive lighting, automotive electronic chassis and other parts.

In terms of equally important chips, BYD also has its own semiconductor company and has a leading edge in the automotive specification-level IGBT technology. They have independently developed IGBT 4.0 power semiconductor devices, and the comprehensive efficiency of electronic control can reach 98.5%. Very good.

In addition, in terms of software, BYD also has an independent research and development of Dilink automobile intelligent system, which is the world's first mass production built-in 5G car communication and entertainment system that BYD Electronics is responsible for independent research and development, with highlights such as MIMO multi-input, multi-output antenna design, and the first dual-frequency positioning and navigation, which can bring users a safe, comfortable, energy-saving and efficient driving experience.

Take the best-selling BYD Han model as an example, 21 of the 24 key parts of the electrical assembly and power system can be self-supplied, a small number of which need the support of external suppliers, while other hardware parts that need to be purchased are mainly general-purpose parts. However, the replacement rate of this kind of parts is relatively high. In other words, the production of this car BYD has achieved the greatest possible supply chain autonomy, no wonder there is a saying in the industry:

With the exception of car tires and glass, BYD has independent R & D capacity for almost all core components.

The strong anti-risk ability that this advantage brings to BYD is also obvious. for example, in the impact of the epidemic in Shanghai in March this year, many car companies stopped production directly because of the impact on their supply chains, while BYD's production and sales were not affected and soon got back on track.

In short, the deep and continuous innovation of technological research and development capabilities, and reasonable layout, highly independent supply chain system, can be said to be the most critical reason behind BYD's steady development and continuous counterattack in recent years.

Conclusion according to the data of the Federation of passengers, the wholesale sales of new energy passenger vehicles reached 676000 in October this year, an increase of 85.8% over the same period last year and 0.4% from the previous month. The growth momentum of new energy vehicles seems to be continuing, but there are also risks in the market of rapid development. for example, the slope of subsidies, car purchase tax reduction and so on. Just for enterprises, what they need is the ability to deal with the industry cycle calmly without fear of risk.

However, it is not an easy task to develop such ability, and it is only after nearly 20 years of persistence and precipitation that BYD begins to reap results and hope. But more importantly, through the exploration and layout of BYD over the years, we may be able to see the secret of how a company can keep its business green, which may be more meaningful than a beautiful financial report.

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