In the first quarter the revenue of the A-share new energy vehicle sector increased by 40% year-on-year

China's new energy vehicle listed companies have successively disclosed their financial data for the first quarter. According to statistics from Everbright Securities, in the first quarter of this year, the A-share new energy vehicle sector achieved a total revenue of about 448.5 billion yuan (RMB, the same below), a year-on-year increase of 40%; a total net profit of about 36.3 billion yuan, a year-on-year increase of 3.6%.

The performance of the new energy vehicle sector was even better last year. For the whole year of 2022, the A-share new energy vehicle sector will realize a total operating income of about 1,799 billion yuan, a year-on-year increase of 94%; a total net profit of about 204 billion yuan, a year-on-year increase of 154%.

Yin Zhongshu, an analyst at Everbright Securities, said that in 2022, due to the sharp increase in the prices of upstream resources and electrolytes, etc., the profitability of the sector increased significantly last year. In contrast, in the first quarter of this year, due to the decline in the price of raw materials such as lithium carbonate, the profitability of the upstream resource sector declined; the profitability of the battery sector was stable, and most of the midstream material sectors declined due to intensified competition, low capacity utilization, and destocking.

Lithium carbonate is an important raw material for lithium batteries, and the price has dropped sharply in the past period of time. According to media reports, after rising to a high of nearly 600,000 yuan per ton at the end of last year, the price of lithium carbonate started to fall, falling by about 66% in more than 4 months, to a minimum of about 180,000 yuan per ton. Currently maintained at around 200,000 yuan per ton.

Jiang Qin, an analyst at CITIC Futures, pointed out that the most obvious slowdown in the revenue growth of the new energy vehicle sector is the upstream industry, indicating that the impact of the sharp drop in lithium carbonate prices on the performance of each link is determined by the industry chain from top to bottom. Digestion, lithium battery materials have assumed the main price reduction pressure; the sharp drop in the price of lithium battery materials has not brought about the improvement of unit profitability in the middle and downstream links through the so-called "cost pressure relief mechanism". Looking ahead, it is expected that the real stabilization of lithium carbonate prices will be the reversal point of market and industry sentiment.

As far as specific companies are concerned, the performance of leading companies is still outstanding. In the first quarter of this year, BYD achieved revenue of approximately 120.174 billion yuan, a year-on-year increase of 79.83%; achieved a net profit of approximately 4.13 billion yuan, a year-on-year increase of 410.89%. In the first quarter, Tianqi Lithium achieved a revenue of approximately 11.449 billion yuan, a year-on-year increase of 117.77%; realized a net profit of approximately 4.875 billion yuan, a year-on-year increase of 46.49%. In the first quarter, Ningde Times achieved revenue of approximately 89.038 billion yuan, a year-on-year increase of 82.91%; achieved a net profit of approximately 9.822 billion yuan, a year-on-year increase of 557.97%. (End)