---
title: "Overall, $BYD(002594.SZ) delivered another solid performance in the third quarter, with the gross ma"
description: "Overall, $BYD(002594.SZ) delivered another solid performance in the third quarter, with the gross margin of its core automotive business (including battery operations) rising by 3.2 percentage points "
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/24900403.md"
published_at: "2024-10-30T13:11:58.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Overall, $BYD(002594.SZ) delivered another solid performance in the third quarter, with the gross ma

Overall, $BYD(002594.SZ) delivered another solid performance in the third quarter, with the gross margin of its core automotive business (including battery operations) rising by 3.2 percentage points quarter-over-quarter to 25.6%, once again exceeding market expectations.

The sequential improvement in automotive gross margin was primarily driven by:

① Volume ramp-up of DMI 5.0 models (Qin L/Seal 06) starting in Q3, lifting average selling prices (ASP): The plug-in hybrid flagship models shifted from Honor Edition Qin Plus/Corvette 05 to DMI 5.0-based Qin L/Seal 06, which are priced ¥14k-20k higher.

② Scale effects from strong sales in Q3 further reduced per-unit depreciation costs, lowering overall unit costs - consistent with Dolphin Research's earlier analysis.

Regarding net profit per vehicle (a key investor focus), Q3 reached ¥9.3k, slightly below the consensus estimate of ¥9.6k due to larger-than-expected sequential growth in BYD's operating expenses.

R&D spending surged by approximately ¥4.7 billion to a record high. Dolphin Research attributes this to: ① Preparations for premium model launches (e.g., DENZA's debut Yi-Sanfang platform); ② Accelerated intelligent driving investments (BYD plans mass production of its in-house advanced ADAS system in November) - a justifiable expenditure.

Notably, while capital expenditures remained low, $BYD COMPANY(01211.HK) accelerated the transfer of construction-in-progress to fixed assets (dropping ¥25.7 billion QoQ to ¥17.6 billion), causing fixed asset value to rise (up ¥33 billion to ¥263 billion). This may raise concerns about higher Q4 depreciation impacting profit margins - Dolphin Research will provide preliminary estimates in subsequent commentary.

### Related Stocks

- [BYDDF.US - BYD Company Limited](https://longbridge.com/en/quote/BYDDF.US.md)
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- [002594.CN - BYD](https://longbridge.com/en/quote/002594.CN.md)
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- [HYDD.SG - BYD HK SDR 10to1](https://longbridge.com/en/quote/HYDD.SG.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.