BYD’s model chief has addressed latest rumors concerning the corporate’s monetary stability, emphasizing metrics similar to debt ratios, complete debt, and provider cost cycles. These discussions have been fueled by feedback from the chairman of Nice Wall Motor (GWM), who advised that BYD could possibly be the “Evergrande of the automotive business.”
In a put up on Weibo, Li Yunfei, the pinnacle of public relations at BYD, highlighted that many have identified articles and movies implying the corporate resembles Evergrande, which is at present going through a extreme debt disaster. Li expressed confusion and frustration about these comparisons.
Wei Jianjun, the chairman of GWM, made the controversial assertion throughout a latest interview, igniting hypothesis about BYD’s monetary well being. Li refuted the allegations by offering detailed comparisons of BYD’s monetary metrics towards its rivals. He identified that BYD’s debt ratio is 70%, whereas firms like Ford and Common Motors have increased ratios at 84% and 76%, respectively.
When it comes to complete liabilities, BYD’s stands at round RMB 580 billion (roughly $80.6 billion), considerably decrease than different automakers like Toyota and Volkswagen, which have liabilities of RMB 2.7 trillion and RMB 3.4 trillion, respectively.
Li additionally highlighted that BYD’s interest-bearing money owed quantity to RMB 28.6 billion, significantly lower than its rivals. He famous the corporate’s accounts payable to suppliers, which is RMB 244 billion, falls in keeping with business norms, but its accounts payable-to-revenue ratio is extra favorable than others.
For cost cycles, BYD has a mean of 127 days, just like Geely, whereas GWM’s is 163 days. Li reported spectacular operational efficiency for BYD in 2024, with revenues of RMB 777.1 billion and a internet revenue of RMB 40.3 billion, marking one of the best leads to three a long time.
Li acknowledged that BYD has been quickly rising whereas different firms, implicitly referencing GWM, have struggled within the new power car sector. He asserted that there is no such thing as a “Evergrande of the automotive business” amongst China’s mainstream automakers and referred to as any unfavorable feedback in regards to the NEV business unacceptable. BYD plans to hunt authorized motion towards these making defamatory claims.
Source link
