Buffet-backed Chinese e-vehicle maker BYD profit snowballs 162% in 2020

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Buffet-backed Chinese e-vehicle maker BYD profit snowballs 162% in 2020

On Monday, BYD Co. Ltd., a Shenzhen-based Chinese manufacturer of wide-ranging e-vehicles such as autos, bicycles and buses, backed by the American billionaire business magnate Warren Buffet, had reported a whopping 162 per cent growth in net profit last year as the Chinese EV maker turned in to a major supplier of facial masks since early days of pandemic.

Nonetheless, Buffet-backed BYD, did not disclose its current output capacity of facial masks, however, back in May last year, the Chinese EV manufacturer claimed to have production lines to manufacture 50 million masks a day.

Buffet-backed Chinese EV maker BYD reports 162% jump in net profit

Aside from that, according to BYD’s annual earnings’ report released earlier in the day, the Shenzhen-based 26-year-old EV manufacturer had clocked a jawdropping $643.75 million in net profits last year, nearly three-fold of those reported in 2019, data from Refinitiv had unveiled.

BYD, in tandem, had sold off 426,972 vehicles last year, 7.5 per cent down from a year earlier amid a havoc-scale plunge in passenger car sales during a pandemic-battered 2020, while the world’s largest automotive market, China, had witnessed a 1.9 per cent decline in auto sales last year.

Apart from that, BYD, which has strategical partnership with Japanese carmaker Toyota alongside Germany’s Daimler AG in China, had reported a 22.6 per cent decline in revenues last year, though the EV maker which had promoted a customized e-vehicle model for Chinese ride-hailing giant Didi Chuxing in 2020, had raised full-year profit forecast for 2021 adding that the company was expecting its net profit to grow between 77.6 per cent to 166.3 per cent during the first quarter of fiscal 2021 on a year-on-year basis.