BYD's main business profitability is strong, with Q1 net profit exceeding 9.1 billion, doubling year-on-year, setting a quarterly record.
On April 25, BYD released its Q1 2025 report:
<blockquote>
<ul>
<li>Revenue: Q1 revenue reached 170.36 billion yuan, a year-on-year increase of 36.35%.</li>
<li>Net profit attributable to shareholders: Q1 net profit attributable to shareholders was 9.155 billion yuan, a year-on-year increase of 100.38%.</li>
<li>Net profit excluding non-recurring items: Q1 net profit excluding non-recurring items was 8.172 billion yuan, a year-on-year increase of 117.80%.</li>
<li>Basic earnings per share: Q1 basic earnings per share was 3.12 yuan, a year-on-year increase of 98.73%.</li>
<li>R&amp;D investment: Q1 R&amp;D expenditure was 14.223 billion yuan, a year-on-year increase of 34.04%.</li>
</ul>
</blockquote>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/98b55349-e368-4a3f-8211-23be49c2df81.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/98b55349-e368-4a3f-8211-23be49c2df81.png"/>
<h2>Performance Exceeds Expectations, Strong Drive from New Energy Vehicle Business</h2>
BYD delivered a performance report for Q1 2025 that far exceeded market expectations. The company achieved operating revenue of 170.36 billion yuan, a year-on-year increase of 36.35%. Net profit attributable to shareholders was 9.155 billion yuan, a year-on-year increase of 100.38%, setting a new quarterly high. More importantly, the company's net profit excluding non-recurring items reached 8.172 billion yuan, with an astonishing year-on-year growth rate of 117.80%, indicating a significant enhancement in the profitability of the company's core business.
The financial report shows that the growth in BYD's Q1 2025 performance mainly stems from the continued strong performance of its new energy vehicle business. Although the company did not disclose specific sales data for models, the phrase &#34;mainly due to the growth of the new energy vehicle business&#34; appeared multiple times in the explanations for changes in various financial indicators, indicating that the growth in new energy vehicle sales and revenue is the main driving force behind the overall performance.
It is worth noting that although operating costs increased by 37.45%, slightly higher than the revenue growth of 36.35%, suggesting some pressure on overall gross margin, the company compensated for this shortfall by improving operational efficiency and obtaining foreign exchange gains. The financial report shows that the company's financial expenses were -1.908 billion yuan, with a year-on-year change of 883.88%, mainly due to a significant increase in foreign exchange gains.
At the same time, the company's credit impairment losses decreased by 92.74% year-on-year to 24 million yuan, indicating improved efficiency in accounts receivable management and further enhancement of asset quality.
BYD continues to maintain high-intensity R&amp;D investment, with Q1 2025 R&amp;D expenses amounting to 14.223 billion yuan, a year-on-year increase of 34.04%, mainly used for employee compensation and material consumption. In addition, the company's development expenditure reached 860 million yuan, an increase of 69.28% compared to the beginning of the year, with significant growth in capitalized R&amp;D investment.
Although high R&amp;D investment may exert pressure on profits in the short term, it is a necessary measure for the company to build long-term competitive barriers, especially in the context of accelerating electrification of global automobiles and intensifying competition, where technological leadership is crucial for BYD's long-term development
The financial report shows that BYD's inventory reached 154.374 billion yuan at the end of the first quarter, an increase of 33.04% compared to the beginning of the year, mainly due to &#34;increased market orders and inventory buildup.&#34; This reflects the company's optimistic attitude towards sales expectations, but also means that more funds are tied up in inventory.
As a result, the net cash flow from operating activities was 8.581 billion yuan, a year-on-year decrease of 16.10%

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The new energy vehicle business continues to be strong, helping BYD's Q1 revenue grow by 36.35% year-on-year, with net profit attributable to the parent company increasing by 100.38%, setting a new quarterly historical high, and non-recurring net profit growing by 117.80% year-on-year

- BYD reported strong Q1 2025 results, with revenue reaching 170.36 billion yuan, a 36.35% year-on-year increase.  
- The net profit attributable to shareholders was 9.155 billion yuan, doubling from the previous year, driven primarily by robust performance in the electric vehicle sector.  
- Despite rising operating costs, improved operational efficiency and significant foreign exchange gains helped mitigate profit pressures, while R&D spending increased by 34.04% to support long-term competitiveness.

Strong sales of electric vehicles, BYD's Q1 revenue increased by 36.35% year-on-year, and net profit doubled year-on-year | Financial Report Insights