BYD Company Limited Detailed Research Report
Business Performance and Financial Health
BYD Company Limited (BYD, Chinese: 比亚迪股份有限公司) has demonstrated robust business performance, with record-high financial results in the year 2024.
For the full year 2024, BYD reported revenue of RMB 777.1 billion, a year-on-year increase of 29%, and a net profit attributable to shareholders of RMB 40.25 billion, up 34% from the previous year. The company’s new energy vehicle (NEV) sales (including electric and plug-in hybrid vehicles) reached 4.27 million units in 2024, a 41% jump year-on-year, making BYD the 4th largest automotive brand worldwide by sales volume. This rapid growth in sales has been accompanied by strong profitability and a solid financial position. BYD generated ample operating cash flow of RMB 133.5 billion in 2024 and held cash reserves of RMB 154.9 billion at year-end. Meanwhile, interest-bearing debt was reduced from RMB 36.55 billion in 2023 to RMB 28.58 billion in 2024, representing only about 4.9% of total liabilities – one of the lowest leverage ratios in the global auto industry. In March 2024, BYD completed a sizable share placement of HK$43.5 billion (approximately USD 5.6 billion) – the largest equity refinancing in the auto sector in the past decade – to fund further R&D and overseas expansion.
A key driver behind BYD’s success is its heavy investment in research and development (R&D). In 2024, BYD’s R&D expenditure reached RMB 54.2 billion, up 36% year-on-year, exceeding its net profit for the year. In fact, BYD has invested more in R&D than its net earnings in 13 of the past 14 years, with cumulative R&D spending now over RMB 180 billion. This extraordinary commitment to innovation has yielded numerous technological breakthroughs – from the 5th-generation DM hybrid system and a triple-motor e3 platform to the DiSus intelligent body control system and the new “Super e-Platform” with ultra-fast charging. These innovations underpin BYD’s competitive edge in the NEV market. BYD’s financial statements also highlight improving profitability: for instance, the gross profit margin of its auto and related products segment reached 22.3% in 2024, up 1.3 percentage points from the previous year. The company’s asset quality is strong, with substantial cash on hand and low debt, as noted above, and it even paid RMB 51 billion in taxes in 2024 (more than its net profit), reflecting its contribution to public finances.
Global sales mix: BYD’s rapid growth is increasingly fueled by international markets. In 2024, overseas markets contributed RMB 221.9 billion to BYD’s revenue (about 28% of the total), highlighting the company’s expanding global footprint. BYD sold approximately 417,000 vehicles overseas in 2024 and aims to double this to 800,000 in 2025. This overseas push is expected to bolster profitability; BYD’s chairman Wang Chuanfu has stated that at some stage the majority of BYD’s profit will come from overseas markets. To achieve this, BYD is addressing tariff barriers by setting up local assembly (e.g. in Thailand and upcoming plants in Europe) and continuing to leverage its cost advantages from China. Overall, BYD’s financial health is excellent – the company is growing revenue and profit at a rapid pace while maintaining a prudent balance sheet and reinvesting aggressively in technology and capacity. This positions BYD strongly against competitors in both the automotive and battery industries.
