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China's electric vehicle maker giant BYD (1211) said its first-half net profit surged 205 percent yearly to 10.95 billion yuan (HK$11.81 billion), mainly boosted by the doubled EV sales.
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The revenue jumped 72.7 percent year-on-year to 260 billion yuan for the first six months of the year. The automobile-related businesses contributed 208.8 billion yuan, up by 91 percent from one year ago, while the income from handset components, assembly service and other products grew 24.4 percent to 51.1 billion yuan, affected by the global weak demand.
Despite the price cuts on EVs in the first half, BYD's gross profit margin rose to 18.33 percent from 13.51 percent one year ago.
In the second half, BYD expects China's new energy vehicle sector to growth and achieve a higher penetration rate on the policy stimuli.
Meanwhile, its electronic arm BYD Electronic (0285) agreed to buy Jabil's manufacturing business in China for 15.8 billion yuan, expanding the production base of its electronics arm in the world's largest mobile arena.
BYD Electronic is taking over the US company's product manufacturing business located in Chengdu and Wuxi, China. The pact includes the manufacturing of products for existing customers.
Elsewhere, Chinese emerging EV maker Xpeng's (9868) agreed to buy Didi Global's smart-car development arm in a deal that eliminates a potential competitor in the crowded electric-vehicle market and gives it a tech-savvy partner.
The HK$5.84 billion all-stock deal will see Didi emerge with a 3.25 percent stake in Xpeng.
Xpeng shares surged more than 16 percent in Hong Kong trading before paring gains to end at HK$72.2 percent, 11 percent higher than the previous close.
Separately, Neto Auto under Hozon New Energy Automobile will set up its headquarters in Science Park, according to its cooperation with Hong Kong Science and Technology Parks Corporation.
