Warren Buffett-Backed Chinese Automaker's H1 Profit More Than Triples Despite Inflation Pressures

China's BYD Co Ltd BYDDF reported first-half gross profit that more than tripled to nearly 3.6 billion yuan ($521 million), driven by rapid growth in sales volume that helped it partially offset inflationary pressure from raw materials.

Revenue: Revenue in the same period rose 65.71% to 150.6 billion yuan, led by strong sales.

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Of this, the revenue from automobiles and related products, and other products amounted to approximately 109.267 billion yuan, representing a year-on-year increase of 130.31%, BYD said.

Revenue from the handset components, assembly service, and other products amounted to approximately 41.07 billion yuan, representing a year-on-year decrease of 4.78%.

Market Share: The group’s market share of new energy vehicles — which includes battery electric vehicles, hybrids and fuel-cell EVs — rose to 24.7% in the first half, representing a rise of 7.5 percentage points from a year earlier, BYD said, citing data from China Automobile Association.

Expansion: BYD, backed by Warren Buffett-led Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B), has joined hands with a number of global dealer partners to enter markets such as the Netherlands, Sweden, Germany, Thailand and Costa Rica.

In August, BYD’s branch in Japan held a brand conference in Tokyo to announce its official entry into the Japanese passenger vehicle market and unveiled three models, namely BYD ATTO 3BYD SEAL and BYD DOLPHIN, which will be launched in 2023.

Price Action: BYDDF shares jumped over 3% to end Monday at $34.89, but lost over 1.5% in after-hours trading, according to data from Benzinga Pro.

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Posted In: AsiaEarningsNewsMarketsTechelectric vehiclesEurasiaEVsWarren Buffett
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