Warren Buffett-Backed China Electric Carmaker BYD Sees 8,000% Jump

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.

Demand for BYD Co. electric vehicles in China Surged! (AP)

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.