BYD expects net profit in the first quarter to fall 24 to 35%

Posted on 3/31/2017 10:54:48 AM

As the government's policy on environmental protection vehicles, BYD is expected in the first quarter net profit of 550 million yuan to 650 million yuan, down 24-35%.
BYD is committed to research and development of electric vehicles and plug-in hybrid cars environmentally friendly models, released on the 28th 2016 earnings. Last year, net profit rose 78.9% year on year to 5.1 billion. In recent years, China has continuously promoted the development of green cars and introduced subsidies to combat urban pollution and promote technological innovation. But last year, China's subsidy policy for electric car manufacturers more stringent, this year's subsidies by 20%, to increase the competitiveness between enterprises.
BYD said the government changed the subsidy policy for new energy vehicles, which will have an impact on the company's performance in the first quarter. New energy vehicle development will face pressure and challenges, sales and profits are expected to decline, BYD needs a period of adjustment.
In three consecutive quarters of three times the growth rate, the third quarter of last year, BYD growth slowed. According to analysts expect this year, BYD growth will be more slowly, net profit may rise 8%. In the first two months of this year, sales of BYD electric cars and plug-in hybrids fell 30.5% as consumers were on the sidelines of government policy.

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