Strong demand for BYD Co. electric vehicles in China, the world’s biggest market for battery-powered cars, has triggered an 8,312% jump in net cash flow from operations, underpinning the Warren Buffett-backed company’s strongest first quarter in six years.
The Shenzhen-based automaker said the 11.9 billion yuan ($1.8 billion) of net cash flow from operating activities it reported for the three months through March 31 in earnings released Wednesday -- the highest ever recorded in a first quarter -- was mostly spurred by cash “received from sales of goods and provision of services.”
Bridget McCarthy a market research analyst at hedge fund Snow Bull Capital Inc., which focuses on green and high-tech firms, said given BYD’s first-quarter net cash flows from operating activities have always been weak, “such a high print really sets the tone for the year.”
In the first quarter, BYD delivered 286,329 new-energy vehicles, up more than 400% on the same period of 2021.
McCarthy said the company’s target of selling between 1.5 million to 2 million NEVs in 2022 could reflect an even more “impressive” growth trajectory against the backdrop of soaring material prices for battery cells.
Net income rose 241% to 808.4 million yuan in the three months while sales increased 63% to 66.8 billion yuan, BYD said Wednesday.
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