BYD Co. Ltd. (01211.HK) is expecting net profit of between 1.43 billion yuan (US$220 million) and 1.61 billion yuan for the year’s third quarter, the Hong Kong Economic Journal reported Friday.
Contributing to the strong earnings will be the booking of the divestment of its electronic parts unit and robust sales in new-energy cars.
BYD’s net profit for the first three quarters of the year is likely to grow 3.89-4.35 times from the same period last year to as much as 2.08 billion yuan, its interim report says.
The disposal of the firm’s 100 percent equity interest in the electronic parts unit will generate 1.63 billion yuan of pre-tax profit.
Chairman Wang Chuanfu said the firm is poised to sell more than 60,000 new-energy vehicles this year.
Its battery production capacity will increase to 10 gigawatt-hours by the end of this year from 6 GWh at the moment, he said.
A total of 210,000 cars were sold during the first half of this year, up 13.98 percent from the same period a year ago.
About 20,000 of the cars were new-energy vehicles.
The firm expects sales of those vehicles to top 60,000 for the full year.
The company set aside 10 billion yuan for capital expenditure this year, of which 5.4 billion was spent during the first half.
It is considering a private placement of new A shares to raise funds for the development of the new-energy car business.
Sales of the firm’s traditional vehicles grew 6 percent in the first half from the same period last year to 190,000 units.
– Contact us at [email protected]