BYD: New energy vehicle subsidy funds of 1.342 billion yuan arrived in 2017

On March 2, BYD (002594) announced that it had recently received central fiscal subsidy funds for the promotion and application of new energy vehicles in 2017 from the Shenzhen Pingshan District Finance Bureau, totaling RMB 1.342 billion.

BYD said that the subsidy will increase the company's cash flow level, help speed up the company's accounts receivable turnover, and reduce financial expenses and the company's asset-liability ratio.

In the "Announcement on the Clearing and Review of Subsidy Funds for the Promotion and Application of New Energy Vehicles in 2017" released by the Ministry of Industry and Information Technology in October last year, Yutong Automobile, BYD and Zhongtong Automobile received the most subsidies, 45.9 respectively. billion, 3.461 billion yuan and 1.12 billion yuan.

BYD’s 2019 semi-annual report shows that the government subsidy included in the current profit and loss was 709.845 million yuan. Its net profit for the current period was 1.454573 million yuan. Government subsidies accounted for nearly 50%. From 2016 to 2018, the government subsidy included in the current period was 1.454573 million yuan. Government subsidies for profit and loss reached 710.939 million yuan, 1275.807 million yuan and 2072.665 million yuan respectively, showing a trend of increasing year by year.

In 2019, BYD sold a total of 230,000 new energy vehicles.

Tianfeng Securities research report believes that Tesla’s official entry into China in 2020 marks that China’s new energy vehicle market has entered the “product era.” Market demand has never been unified, and different leading car companies will emerge in different price ranges in the future. BYD has rebuilt its model system since 2018, and has subsequently launched a series of popular models, such as Yuan EV, Tang DM, Song Pro, etc. BYD will adopt multi-pronged cost reduction measures in 2020-21, and will launch its first "blade battery" this year, which will be mass-produced in March. The cost will be reduced by 20-30%, and the profit quality can be expected to increase. Based on the assumptions and calculations of the cost breakdown of fuel, pure electric, and plug-in hybrids for the same model, the replacement of BYD's lithium iron phosphate "blade battery" can reduce costs by about 8% in the battery core part and about 20% in the battery pack part. , the overall gross profit margin of pure electric models is increased by approximately 3.4, and the gross profit margin of plug-in hybrid models is increased by approximately 1.1, and the cost per kilowatt hour can be reduced by approximately 90 million yuan.

In addition, as the impact of subsidy reduction gradually weakens, BYD's new energy vehicle sales are expected to maintain the industry lead with its leading new energy vehicle technology and complete product system. This year, BYD Han, the first model equipped with "blade battery", will be launched in the third quarter. The new car is positioned as a mid-to-large sedan with a wind resistance coefficient of only 0.233Cd. It is divided into two versions: pure electric Han EV and plug-in hybrid model Han DM. EV The version has a cruising range of up to 600 kilometers and is expected to become another masterpiece of BYD in the new energy vehicle market.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.