BYD's Q1 net profit fell by over 80 percent year-on-year due to slowdown in automobile businesses.
Buffet-backed BYD booms in Shenzhen debut
Shares of China's BYD Co., a private automaker backed by billionaire Warren Buffett, rose by 22.22 percent on Thursday in its debut on the Shenzhen stock exchange despite weak first quarter earnings.
The Shenzhen-based carmaker announced Wednesday its first quarter net profits dropped 84.35 percent on an annual basis to 266 million yuan. In a filing with the Hong Kong stock exchange, where BYD is already listed, the company attributed its poor performance to a slowdown in car sales.
The profit drop was "mainly due to a decline in automobile sales volume and revenue as a result of the cessation of preferential tax policy on automobile purchases and intensifying market competition," BYD said in a statement.
Operating revenue fell 11.6 percent from a year earlier to 11.71 billion yuan.
BYD shares in Hong Kong dropped 4.99 percent to close at HK$23.8.
BYD sold 79 million shares at 18 yuan per share in its initial public offering in Shenzhen. The company raised a total of 1.422 billion yuan, 35.13 percent lower than the previously estimated 2.192 billion yuan.
22%
2011 2.66 84.35%
117.1 11.6%
, 23.8 4.99%
A 18 / 14.22 21.92 35.13%
China's business press carried the story above on Thursday.
