BYD, backed by US billionaire Warren Buffett, said on Wednesday first quarter net profit shrank 84% because of increased costs and falling car sales.
The firm earned CNY266.7m ($41.2m) in the three months ended 31 March, well below its CNY1.7bn net profit in the same quarter last year, AFP reported.
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The Hong Kong-listed company also said operating revenue fell almost 12% to CNY11.7bn in the quarter, down from CNY13.25bn a year ago.
“This was mainly due to a decline in automobile sales performance coupled with an increase in management and finance expenses,” BYD said in a statement cited by the news agency.
The firm’s A-shares will make their trading debut in the southern Chinese boomtown of Shenzhen on Thursday after BYD raised a lower-than-expected CNY1.4bn in a share sale earlier this month.
Chinese vehicle sales overall fell 3.98% year on year to 1.38m units in May, a second straight monthly decline.
BYD’s Hong Kong shares closed 5% lower at HK$23.80 (US$3.05) on Wednesday. AFP noted the company’s shares have tumbled over 70% since hitting a record closing high of HK$85.50 in October 2009, amid concerns over competition and the company’s delayed plan to export electric cars to western markets.
