BYD posted strong financial performance for the first quarter of 2024, marking a significant increase in net income and revenue, although both metrics were lower than the previous quarter.
The Chinese new energy vehicle (NEV) manufacturer reported a net income of RMB 9.16 billion ($1.26 billion), reflecting a remarkable 100.38% increase compared to the same period in 2023. However, the figure represented a decline of 39.03% from the previous quarter, ending December 2023.
Revenue for the first quarter amounted to RMB 170.36 billion, a year-on-year growth of 36.35%. Despite this, it saw a 38.02% drop compared to Q4 2023.
Gross margin stood at 20.07%, showing a slight decrease from 20.71% in Q1 2023, but an improvement of 3.05 percentage points from the 17.02% margin reported in Q4 2023.
BYD also revised its operating costs to RMB 9.91 billion, up 37.45% year-on-year, primarily driven by the expansion of its NEV business. These changes were reflected in the adjusted gross margin from the previously reported 21.88% for the first quarter of 2023.
The company’s NEV sales reached 1,000,804 units in Q1 2024, a 59.81% increase year-on-year, though down 34.34% from the fourth quarter of 2023.
Research and development expenses rose by 34.04% to RMB 14.22 billion, driven largely by higher employee compensation and increased material consumption as the company continues its investment in NEV development.