Strong demand for BYD’s electric vehicles in China, the world’s largest battery-powered vehicle market, fuelled an increase in net operating cash flow of 8,312 percent, paving the way for the Warren Buffett-backed company’s best first quarter in six years.
The Shenzhen-based manufacturer said cash earned from sales of products and services drove its first-quarter net cash flow of 11.9 billion yuan ($1.8 billion), which was the best in six years.
A high score sets the tone of the year
BYD delivered 286,329 new energy vehicles in the first quarter of 2021, up more than 400% from the same period the previous year.
Operating profit increased by 241 percent in three months to 808.4 million yuan, while sales increased by 63 percent to 66.8 billion yuan.
“Considering battery cell material pricing, BYD’s estimate of 1.5 million to 2 million car sales in 2022 might show an even more spectacular growth trajectory,” said Bridget McCarthy, market research analyst at hedge-background Snow Bull Capital Inc.