On March 26th, BYD, the "car king" of new energy vehicle companies, released its 2023 annual financial report.

Full-year revenue of more than 600 billion, gross margin rose steadily

According to performance data, BYD achieved a total revenue of 602.315 billion yuan (RMB) in 2023, a year-on-year increase of 42.04%, reaching a historic high. This revenue level of BYD has come to the forefront of the revenue scale of domestic enterprises in China, second only to ByteDance (about 780 billion yuan) and Huawei (more than 700 billion yuan).

In terms of profitability, for the whole year of 2023, BYD's net profit attributable to shareholders of the listed company was RMB 30.041 billion, a year-on-year increase of 80.72%. That is to say, BYD earned an average of about 80 million yuan per day last year.

After experiencing multiple price wars in 2023, BYD's automotive gross profit margin has steadily increased for three quarters and reached an astonishing 23% in the fourth quarter, a year-on-year increase of 2.63%, leaving Tesla (17.6% in the same period) behind.

After experiencing multiple price wars in 2023, BYD's auto gross margin rose steadily over the three quarters and reached a staggering 23% in the fourth quarter, up 2.63%, will Tesla (17 in the same period.6%) left behind。

In 2023, BYD's operating net cash flow reached 169.7 billion yuan, showing sustained and steady growth. BYD also stated that it plans to distribute cash dividends exceeding 9 billion yuan, with a dividend ratio of 30%.

In terms of research and development, BYD's R&D investment reached 39.918 billion yuan throughout 2023, a significant increase of 97.39% year-on-year. The proportion of R&D investment in its operating revenue reached 6.63%, an increase of 1.86% compared to the previous year. The proportion of R&D personnel reached 14.62%, with 102844 people, a year-on-year increase of 47.56%.

It is worth noting that the proportion of R&D personnel with a master's degree or above and under 30 years old in the company has significantly increased compared to the end of 2022. The company explained that the main reason is that in 2023, the company increased the recruitment of fresh graduates and the introduction of social research and development talents according to the needs of business development. BYD believes that this will help the company reserve research and development talents, improve personnel structure, and enhance research and development capabilities.

New energy sales in the world, exports soared more than 4 times

BYD's outstanding revenue and net profit are due to the economies of scale brought about by its sharp increase in sales.

According to official disclosure, in 2023, BYD's sales of new energy vehicles reached 3.0244 million units, a year-on-year increase of 67.79%, ranking first in the world. The sales of passenger cars were 3,012,900 units, a year-on-year increase of 67.7%.

According to data from the China Association of Automobile Manufacturers, in 2023, BYD's market share of new energy vehicles further increased to 31.9%, a year-on-year increase of 4.8 percentage points, and it has remained the leader in sales of new energy vehicles in China for 11 consecutive years. BYD also pioneered the history of Chinese car companies entering the top ten in global sales for the first time, becoming the first Chinese car company to achieve this result.

In addition, BYD's sales growth in overseas regions is very impressive, with a year-on-year surge of 457.66%, reaching 252,300 vehicles. Among them, the sales of passenger cars exceeded 240,000 units, a year-on-year increase of 337%, and BYD became the Chinese brand with the most exports of new energy vehicles in 2023.

Therefore, in 2023, BYD's overseas revenue increased by 75.2% year-on-year, reaching 160.222 billion yuan. In 2023, the company's overseas revenue accounted for 26.6% of its total revenue, an increase of 5.03 percentage points compared to the same period in 2022.

Counterpoint stated that in the fourth quarter of 2023, BYD's sales of pure electric vehicles increased by 51% year-on-year, surpassing Tesla to become the world's best-selling pure electric vehicle. Among them, the Yuan PLUS (overseas Atto 3), Dolphin, and Seagull models are still BYD's best-selling models, accounting for more than 70% of BYD's total sales of pure electric vehicles. Moreover, BYD's Yuan PLUS and Tesla's Model Y/3 jointly became the best-selling electric vehicle models in the fourth quarter of 2023.

Price gradient layout has been completed, building some overseas bases

Currently, BYD has formed a multi brand gradient layout consisting of the BYD brand (including the "Dynasty" and "Ocean" series), Tengshi brand, Eq. Leopard brand, and Yangwang brand, spanning a price range of 50-1.5 million yuan. The market performance of each brand has been impressive this year, and the multi brand strategy has shown initial results.

Among them, the successful launch of the Qin PLUS Champion Edition last year broke the joint venture monopoly and became the first Chinese brand car model to win the annual family sedan championship in thirteen years. In February of this year, BYD launched the Qin PLUS Honor Edition and lowered the price to around "7", with an official guide price starting at only 79800 yuan, making another ultimate move against joint venture fuel.

In terms of high-end development, the brand is particularly eye-catching. Looking forward to U8 being launched in September 2023 and officially starting delivery in November. By the end of 2023, in the first full delivery month, we hope that the sales of U8 will exceed 1500 units, becoming the top monthly sales of million level new energy SUVs. On March 26, 2024, BYD officially announced that after winning the monthly sales championship of million level new energy SUVs for three consecutive months, looking forward to U8 achieving a new milestone, delivering 5,000 units in just 132 days, setting a record for the fastest sales of million level SUV models in China.

In 2023, BYD will further deepen its overseas layout. In March, BYD's first overseas passenger car production base was laid in Thailand, injecting new vitality into the local new energy vehicle market.

In July, BYD announced the establishment of a large-scale production base complex in Brazil to accelerate the popularization and application of new energy vehicles in the local area.

In September, BYD signed an investment agreement with the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan, further providing strong support for the joint venture between BYD and UZAVTOSANOAT JSC in the production of complete vehicles and components.

In December, BYD announced that it would build a globally leading new energy vehicle manufacturing base in Hungary, further deepening its market layout in Europe.

As of now, BYD has entered 78 countries and regions worldwide, and has invested in building factories in overseas regions such as Brazil, Hungary, and Thailand.