BYD’s brand chief has come forward to address recent allegations made against the company, refuting claims that it is facing financial difficulties akin to Evergrande. The controversy began when the chairman of rival company Great Wall Motor (GWM) likened BYD to the troubled real estate developer.
In a detailed response on Weibo, Li Yunfei, the brand and public relations head of BYD, presented a comprehensive breakdown of the company’s financial health. Contrary to the comparisons drawn by GWM’s chairman, Li highlighted key metrics such as debt ratio, total liabilities, and payment cycles to suppliers to showcase BYD’s stability in the market.
According to Li, BYD’s debt ratio stands at 70 percent, which is lower than that of companies like Ford, General Motors, Apple, Boeing, Geely, and Seres. The company’s total liabilities amount to approximately RMB 580 billion, significantly lower than industry giants like Toyota and Volkswagen. In terms of interest-bearing debt, BYD also fares well compared to its competitors.
Li emphasized that BYD’s operational performance in 2024 was exceptional, with impressive revenue, net profit, R&D expenditure, taxes paid, and cash reserves. He pointed out that the company has been experiencing rapid growth while some competitors have struggled to keep up, particularly in the NEV sector.
Addressing concerns about payment cycles and accounts payable, Li revealed that BYD’s metrics are in line with industry standards, with the company maintaining a healthy balance between revenue and liabilities. He stressed that the asset-liability ratios of China’s mainstream automakers are robust, dispelling any notions of a potential “Evergrande of the automotive industry.”
In conclusion, Li stated that any attempts to undermine China’s NEV industry are unwarranted, and BYD will take legal action against those spreading false information. The company remains committed to transparency and will continue to operate with integrity in the market.
The response from BYD’s brand chief serves as a reassurance to investors and stakeholders, reaffirming the company’s financial stability and strong position in the automotive industry. As the NEV market continues to evolve, BYD remains a key player driving innovation and growth in the sector.
