BYD Co. Ltd. (1211.HK) expects exponential growth in sales of its new-energy vehicles, particularly the plug-in hybrid vehicles (PHV), this year, chairman and president Wang Chuanfu said.
At a post-results news conference Monday, Wang also said that he sees great potential in intelligent-vehicles business.
BYD will continue to implement a “smart” strategy, he said, adding that the Shenzhen-based firm will not rule out the possibility of cooperation with major internet companies.
The Chinese company saw its revenue from new-energy vehicles business rise six-fold to about 7.25 billion yuan in 2014. Sales volume was 9 times the year-earlier level, according to the regulatory filing.
However, that was outweighed by a weak performance of BYD’s traditional-fuel automobile business, which recorded a 21.3 percent decline in sales volume from the previous year to 373,000 units.
The company attributed the poor performance in the traditional cars business to policy changes in China and intensified market competition.
Total revenue from the automobile business was 26.27 billion yuan, up 3.87 percent from 2013.
Wang believes that sales of traditional vehicles will stabilize this year due to increasing demand for SUV models, while the company’s pure electric cars and new-energy buses are likely to see strong performance.
BYD reported a net profit of 433.53 million yuan (US$69.8 million) for 2014, down 21.6 percent from the previous year.
Apart from the traditional automobile business, a loss in the solar energy business also weighed down the earnings.
Revenue came in at 55.37 billion yuan, up 11.25 percent. Basic earnings per share stood at 18 fen. The board did not recommend any dividend.
Sales revenue in BYD’s handset components and assembly business increased by 23.9 percent to 24.12 billion yuan, while rechargeable batteries and photovoltaics sector contributed revenue of 4.98 billion yuan, a decline of 0.76 percent.
A listed subsidiary BYD Electronic (International) Co. Ltd. (00285.HK) saw its revenue surging 23.47 percent to 19.83 billion yuan in the year, helping its net profit climb to 902 million yuan from 648 million.
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