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Tuesday, March 29, 2016, 14:16

BYD net profit rockets by 551%

By Luo Weiteng

HONG KONG - Electric automaker BYD reported annual net profit in 2015 soared by 551 percent to 2.8 billion yuan ($430 million) over the previous year, as demand for green-energy vehicles remained at an all-time high.

Overall revenue for the Shenzhen-headquartered company climbed by 40.2 percent to 77.6 billion yuan. Revenue from the green-energy automobile business rose more than 2.5 times to 19 billion yuan, accounting for 24.5 percent of total revenue and standing as a major source for the company’s revenue and profit.

BYD, about 10 percent owned by US business magnate Warren Buffett’s Berkshire Hathaway, is benefiting from a slew of government incentives including fiscal subsidies, tax cuts or exemption, and construction of charging facilities, as policymakers on the Chinese mainland bet big on green cars to curb pollution and save energy.

Last year, sales of BYD’s new energy automobiles, which cover electric vehicles and plug-in hybrids, surged by 208 percent over 2014 to 58,000 units, as sales of new energy automobiles in the domestic auto market more than tripled to 331,000 units.

The company announced plans to open a new 4 billion yuan plant for electric buses and other e-vehicles this year in Taiyuan, Shanxi province, as a bold move to strengthen its position as market leader in this segment.

Banking on the strong sales of new energy vehicles and robust growth in its handset component and assembly business, the company also projected that net profit for the first quarter of 2016 would post a year-on-year growth of more than 50 percent.

Industry insiders forecast that national standards for low-speed electric vehicles will likely be rolled out in June this year. The low-speed electric automobile market could thus well expect a further boost in the second half.

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