(Bloomberg) -- BYD Co. reported a 42% drop in annual earnings, with the Chinese electric-vehicle maker backed by Warren Buffett getting hit by an industrywide slump in the world's biggest EV market.
Billionaire Wang Chuanfu's BYD had net income of 1.61 billion yuan ($227 million) for 2019, according to a statement from the company Tuesday. Analysts predicted 1.67 billion yuan on average. Revenue fell 1.8%.
Car sales in China are falling for a third year as the coronavirus outbreak exacerbates a slump kicked off by a slowing economy, trade tensions and stricter emission regulations. Shenzhen-based BYD, China's biggest maker of vehicles powered by alternative energy for the past six years, has also been hurt by China's reductions in EV subsidies.
To combat the slump and widen its revenue sources, BYD is expanding beyond cars. The company said this week it will start offering a full suite of EV components to rivals and aspiring auto manufacturers, including electric-car batteries and powertrains.
Shares of BYD have gained 4.25% this year in Hong Kong, handily outperforming the broader market. They climbed 4.9% Tuesday.
©2020 Bloomberg L.P.
With assistance from Bloomberg
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