Part 6/10:
On the surface, BYD appears to be expanding profitably. Recent financial reports indicated that the company saw its net profit jump by 33% year-over-year in 2024, with a reported revenue of approximately 777 billion yuan. However, industry analysts argue that a 5.4% profit margin—although higher than the industrial average of 2%—mask deeper issues, particularly relating to BYD's cash flow and supplier payments.
Moreover, the financial complexities deepen when considering how BYD categorizes revenues: automobile sales are bundled with battery supply revenues. This could potentially inflate the perceived profitability of their automotive division, making it look like revenues cover losses in electric vehicle sales when they might not.