BYD reported a 204.7% year-on-year jump on Monday, reaching RMB 10.95 billion ($1.5 billion) in net profit for the first half of this year. The gross margin of its electric vehicle and related businesses also increased by 4.36% to 20.67% from the previous year. These numbers reflect a noteworthy achievement for the Chinese automaker, as competitors like Tesla and Geely have experienced declining profit margins over the past six months due to repeated price reductions in the country’s competitive market. Notably, BYD significantly increased its spending on research and development, more than doubling from RMB 6.5 billion to RMB 14.25 billion compared to the previous year. This Warren Buffett-backed EV maker has been on a hiring spree to acquire research talent starting this year. Additionally, the revenue from its EV and auto parts businesses saw a remarkable 91.1% year-on-year increase, reaching RMB 208.8 billion, driven by the sale of 1.25 million EVs. These sales constituted a third of the country’s total green vehicle sales during the first half of this year, as indicated by official figures. [BYD filing, in Chinese]
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