BYD plans to launch a laptop

Benefited from the continued policy encouragement for small-displacement vehicles, BYD Co., Ltd. (01211.HK, hereinafter referred to as BYD) recorded a net profit increase of 105.6% in the first half of this year from a year earlier, reaching 2.42 billion yuan, higher than the same period of last year. 1.18 billion yuan. Facing the declining performance in the second quarter, BYD Chairman Wang Chuanfu stated at the performance briefing yesterday that with the advent of the auto sales season, the fourth quarter results will rebound. He revealed that Warren Buffett, one of the shareholders of the group, will visit BYD on the occasion of his visit to China next month.

"The fourth quarter results will rise"

BYD announced its 2010 interim results on August 22. BYD’s revenue increased by 50.3% in the first half of the year from RMB 16.13 billion to RMB 24.25 billion. Among them, the auto manufacturing business revenue contributed 54% to BYD's total revenue in the first half of the year, an increase of 46.3%, from 8.88 billion yuan in the same period last year to 12.99 billion yuan.

However, despite the first half of the performance growth of more than doubled, but BYD's second quarter profit fell. Among the net profit of BYD in the first half of the year, it accounted for 1.704 billion yuan in the first quarter. In the second quarter, it dropped significantly to 717 million yuan. In the second quarter, operating income was 11.59 billion yuan, which was also a decrease of 8.4% from the previous quarter (compared to the previous quarter).

In this regard, BYD Chairman Wang Chuanfu said at the performance briefing yesterday that the second quarter due to the stock market down, leading to consumer delays in consumer sales, sales are expected to continue to increase in the second half. Among them, September-October is the peak season for sales of traditional automobiles, and the company will launch more cars. It is expected that BYD’s performance in the fourth quarter will rebound.

In the first half of this year, BYD sold 286,000 vehicles, an increase of 57.5% over the same period of last year, but only completed 36% of the annual target set by the company at the beginning of the year.

On the 3rd of this month, BYD volunteered to reduce its sales target for this year from 800,000 to 600,000. BYD also stated that the company’s increased focus on large-scale cars led to a contraction in production, which also contributed to the reduction of sales targets.

In order to compete for the sales season of “Jin 9 Silver 10”, BYD successively launched two new models of M6 and L3 in July and August. Both new cars are positioned as mid-level and mid-level vehicles. BYD hopes to increase the profits of bicycles instead of blindly pursuing sales. .

Xu An, a public relations manager at BYD Automotive, told reporters that BYD will launch i6, G6 and S6 during the year. The prices of these models are all more than 100,000 yuan, which will change the situation of BYD vehicles focusing on vehicles under 100,000 yuan. To this end, BYD has positioned this year as the "Brand Year." For the F3DM dual-mode electric vehicles that have already been listed, Wang Chuanfu said that the current monthly production capacity is 200 vehicles, and 100 vehicles are sold each month. It is hoped that the monthly sales will increase to 200 units in the second half of the year, and the monthly production capacity will increase to 1,000 units in the next year.

As Hangzhou and Shenzhen have already introduced local subsidies for local residents to purchase new energy vehicles, subsidies for such plug-in hybrid vehicles like the F3DM are all up to 30,000 yuan, plus national subsidies of 50,000 yuan, F3DM’s The price is similar to that of the regular gasoline car F3. In this regard, the industry believes that as more cities implement subsidies, F3DM sales will certainly increase.

In addition, BYD also plans to sell pure electric car E6 in the United States later this year. BYD has expressed its intention to establish regional sales offices in North America and Western Europe in order to gain higher market share. In the domestic market, E6 is scheduled to be listed in September.

Plan to launch a laptop

In addition to the car, Wang Chuanfu also said yesterday that its solar business has begun to make profits, and will become the focus of development in the future. The company is studying whether to enter the field of home appliances. There is no decision yet.

However, the Morning Post reporter learned from insiders at BYD that BYD has plans to launch laptops to enter the IT industry. At present, the computers used by BYD employees are basically BYD's own computers. At the International Computer Show in Taiwan in early June of this year, Steven Jiang, product marketing manager of BYD, disclosed that BYD’s tablet PC is a “very competitively priced product and is expected to sell for less than US$300”.

Although he has applied for a renewed A-share extension, Wang Chuan-fu still said yesterday that he is applying for the listing of mainland A-shares, which is expected to be completed in the second half of this year. Wang Chuanfu said that it must also consider the approval of the mainland regulatory authorities. In addition, as a Shenzhen company, BYD tends to list in Shenzhen.

As of the end of June, BYD's total borrowing was 6.468 billion yuan. The company's cash holdings amounted to 4.28 billion yuan, and the gearing ratio increased from 8% at the end of last year to 25%, which attracted external attention. Wang Chuanfu acknowledged that the company’s debt will increase, but said it will maintain a healthy level.

Confirming Buffett's visit next month

Warren Buffett and Microsoft founder Gates had called on the American rich to donate half of their assets for charitable purposes. It is reported that he plans to visit China next month to lobby China's richest people to participate. The industry has speculated that as the richest man in Buffett's most familiar and well-informed family, Wang Chuanfu may be the first object of Buffett's lobbying.

Yesterday, Wang Chuanfu did not respond positively to this. He only stated that he had not read relevant reports. However, he confirmed that Buffett will visit BYD but the time and place of meeting with him have not yet been determined.