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在线翻译:
szdaily -> Markets
BYD’s profit slides as green car subsidies cut
    2017-August-31  08:53    Shenzhen Daily

SHENZHEN-BASED automaker BYD Co., backed by U.S. investor Warren Buffett, said Tuesday net profit fell sharply for the first half of the year, as the government reins in subsidies and other policy support for green energy cars.

BYD, which has invested heavily in making battery electric and plug-in hybrid vehicles, posted net profit of 1.72 billion yuan (US$259.9 million) for the January-June period, behind analyst estimates of 1.82 billion yuan.

China, which has been aggressively promoting green vehicles, has cut back subsidies to the sector this year and imposed stricter requirements on electric-car makers after a subsidy cheating scandal in 2016.

BYD said net profits would continue to face challenges later in the year, predicting a 20.04-25.22 percent fall for the first nine months of the year due to the reduction of subsidies and increasing market competition.

BYD, which saw net profit shoot up 78.9 percent last year, said in April it expected the subsidy cuts for green vehicles to drag down first-half profits by up to 31.4 percent to between 1.55 billion and 1.8 billion yuan.

BYD’s overall vehicle sales, those of gasoline cars and electric battery plug-in vehicles, fell 14.8 percent to 183,637 vehicles in the first half, compared with the same period last year, according to Automotive Foresight.

Yale Zhang, head of Automotive Foresight, said BYD’s new-energy vehicle (NEV) sales volume had been “basically flat,” while petrol engine car sales had fallen faster.

Bill Russo, managing director at consultancy Gao Feng Advisory Co., added BYD could benefit from a broader green transport push into monorail, buses and batteries, as well as supportive policies including an NEV credit program.

“We have seen a sales recovery trend for BYD during the past few months, especially in the second quarter,” Russo said. “In addition, BYD is pushing green public transportation in China and globally.” (SD-Agencies)

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