BYD Electronic (International) Company (285) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 rose 39.87% year-over-year to RMB78,581 million, with profit attributable to shareholders up 0.14% to RMB1,518 million, driven by strong consumer electronics and new energy vehicle segments.

• Consumer electronics business saw substantial growth, supported by product category expansion, increased market share with overseas customers, and high-end Android smartphone demand recovery.

• New energy vehicle segment maintained strong growth, driven by increased shipments of intelligent cockpit, driving assistance, and thermal management products.

• The Group was included in the Hang Seng Index and ESG Enhanced Index, reflecting market recognition of profitability and development potential.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit increased 22.01% year-over-year to RMB5,379 million, but gross margin declined from 7.85% to 6.85% due to sales structure changes.

• Operating cash inflow dropped to RMB183 million from RMB2,351 million in the prior year, mainly due to higher cash outflows for goods and services.

• Earnings per share remained at RMB0.67.

• Profit attributable to owners was RMB1,518 million, up 0.14% year-over-year.

• Revenue reached RMB78,581 million, up 39.87% year-over-year.

Outlook and guidance

• The company expects continued business growth in the second half of 2024, focusing on R&D, innovation, and vertical integration, with strong momentum in new energy vehicles and emerging businesses.

• Anticipates further market recovery in consumer electronics, driven by AI adoption and product upgrades, and sustained expansion in new energy vehicle product lines.

• The Group expects China's economic recovery to strengthen, with proactive macroeconomic policies and industry-supportive measures.