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BYD's total debt is as high as 531.624 billion yuan, which is surprising, but do you need to worry?

Operator Finance Network Wang Xinyao/text

Since the beginning of this year, BYD's development momentum has been very strong, first in the first half of the year to achieve SAIC Group's revenue and net profit. In the past September, BYD ended the myth of SAIC's 18-year sales championship and became a veritable "largest car company" in China. However, the operator's financial network noticed that there were some worried voices on the Internet at the same time, what is the situation?

BYD's total debt is as high as 531.624 billion yuan, which is surprising, but do you need to worry?

According to the financial report data, in the first half of 2024, BYD will achieve an operating income of about 301.127 billion yuan, a year-on-year increase of 15.76%; The net profit attributable to shareholders of listed companies was about 13.631 billion yuan, a year-on-year increase of 24.44%.

It is understood that SAIC's operating income in the first half of this year was about 277.086 billion yuan, a year-on-year decrease of 12.43%; net profit attributable to shareholders of listed companies was about 6.628 billion yuan, down 6.45% year-on-year.

After surpassing SAIC in terms of revenue and net profit, BYD continued its strong development trend in the second half of the year, achieving both monthly and annual sales in September.

In September 2024, BYD achieved sales of 419426 units, a year-on-year increase of 45.91%; From January to September, BYD sold 2747875 cars, an increase of 32.13% year-on-year.

However, for such excellent data performance, there are many articles on the Internet that raise concerns about BYD's high debt and declining cash flow.

BYD's total debt is as high as 531.624 billion yuan, which is surprising, but do you need to worry?
BYD's total debt is as high as 531.624 billion yuan, which is surprising, but do you need to worry?

As of December 31, 2023, BYD's total liabilities were about 529.086 billion yuan. As of June 30, 2024, the company's total liabilities were about 531.634 billion yuan, with a debt ratio of over 76%.

The increase of 2.548 billion yuan in half a year is not much compared to its huge debt base, but its total debt of more than 100 billion yuan has caused many people to discuss.

So where are BYD's hundreds of billions of debts owed?

Judging from the financial report data, BYD's accounts payable amounted to 207.517 billion yuan, accounting for 39% of the liabilities; Other payables amounted to approximately RMB157.497 billion, including dividends payable, external transactions, margins, medical funds, etc. In short, they are all interest-free liabilities, which are the performance of the competitiveness of enterprises in the industrial chain.

BYD's total debt is as high as 531.624 billion yuan, which is surprising, but do you need to worry?

In addition, in the first half of 2024, BYD's net cash flow from operating activities was about 14.178 billion yuan, a year-on-year decrease of 82.7%. The cash flow in the same period last year was about 81.971 billion yuan.

Officials said that the decline in cash flow was mainly due to the purchase of goods and the acceptance of labor services. From this point of view, even if BYD's total debt is as high as 531.634 billion, it does not seem to be "in crisis".

Therefore, in fact, some self-media articles do not understand finance, BYD's revenue and profits are growing significantly, and the amount of debt is a normal phenomenon.

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