Profitability has significantly improved, with BYD Electronics' net profit in the first half of this year increasing by 139.15% YoY | Earnings Report

Due to the optimization of business structure and improvement in capacity utilization, BYD Electronics has significantly improved its profitability, with a net profit of 1.516 billion RMB, representing a substantial YoY growth of 139.15%.

On Monday, August 28th, BYD Electronics released its 2023 interim performance report on the Hong Kong Stock Exchange. According to the report, BYD Electronics achieved a revenue of 56.18 billion RMB in the first half of this year, a significant YoY increase of 28.58% compared to 43.694 billion RMB in the same period last year. Based on this, the revenue for the second quarter of this year is estimated to be 29.8 billion RMB, representing a QoQ growth of 13%.

The report states that due to the optimization of the business structure and improvement in capacity utilization, the gross profit reached 4.4 billion RMB, a nearly 100% YoY increase. The net profit was 1.516 billion RMB, a substantial YoY growth of 139.15% compared to 630 million RMB in the same period last year.

In terms of specific business segments, the report mentions that the group continues to focus on providing comprehensive services for the mid-to-high-end products in the Android market. However, due to weak demand in the smartphone market, the group's revenue from Android device assembly and component businesses has been affected to some extent.

The revenue in the consumer electronics business sector reached 410.48 billion RMB, representing a YoY growth of approximately 23.82%. Among them, the revenue from components decreased by 25.67% to approximately 49.86 billion RMB, while the revenue from assembly increased by 36.38% to approximately 36.062 billion RMB.

As of the close of trading on August 28th, BYD Electronics' stock price remained stable at 32.85 HKD per share, with a current market value of approximately 74 billion HKD.

Today, BYD Electronics announced that it has entered into a framework agreement for the acquisition with the seller, Jabil Circuit (Singapore) Pte. Ltd. According to the agreement, the seller has conditionally agreed to sell, and the company has conditionally agreed (by itself or its designated affiliate) to acquire 100% equity of Juno Newco Target Holdco Singapore Pte. Ltd. (the target company) for approximately 15.8 billion RMB.

The target company is a privately held limited company registered in Singapore in August this year. After the restructuring is completed, it will own product manufacturing businesses in Chengdu and Wuxi, including component manufacturing businesses for existing customers, which are currently conducted by the seller and its affiliates.