BYD 2011 Earnings Down 44%


 BYD (002594,1211.HK) posted a 44.3 percent year-on-year decrease in 2011 net profit to 1.4 billion yuan due to fierce competition, changes in product structure, and a drop in the prices of photovoltaic products, reports 21st Century Business Herald, citing a company filing. Earnings per share hit 0.61 yuan, down 45.05 percent.

The maker of rechargeable batteries and autos recorded a 1.21 percent year-on-year drop in total revenue to 49.04 billion yuan, while operating revenue fell 48.75 percent to 1.42 billion yuan.

During the first three quarters of 2011, BYD had recorded an 85.5 percent year-on-year drop in net profit.

However, BYD recorded a 582.07 percent surge in third-quarter net profit, and the company then forecast a 35-65 percent year-on-year drop in 2011 earnings.

According to the report, BYD, which had benefited from rapid expansion, began to experience problems with the quality of its autos from the beginning of 2010, leading to a plunge in sales volume.

BYD rolled out the M6 in July 2010 in a move to enter the high-end auto market, and had expanded its sales outlets to 1,200 within a five-year period. 

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