(Yicai Global) March 30 -- Shares of dual-listed BYD diverged at the market close, recovering from a slump earlier in the day, after the Chinese automaker’s earnings report showed electric vehicle subsidies accounted for more than half of its net profit last year.

BYD’s stock [HKG:1211] ended down 0.4 percent in Hong Kong at HKD170.40 (USD21.92), while its Shenzhen shares [SHE:002594] gained 0.5 percent to CNY169 (USD25.74). They had fallen as much as 7.7 percent and 5.4 percent, respectively.

Net profit almost tripled to CNY4.23 billion (USD644 million) in the 12 months ended Dec. 31, with government subsidies on electric cars and buses accounting for 54 percent of that, Shenzhen-based BYD’s financial report showed yesterday. Revenue rose almost 23 percent to CNY156.5 billion (USD23.8 billion), driven by its vehicle, mobile phone parts and photovoltaics businesses. 

Cars were BYD’s biggest earner last year, with revenue jumping almost a third to CNY84 billion, even though EV sales fell amid the pandemic, declining nearly 13 percent to almost 162,900. Its phone parts assembly business gained 12 percent to CNY60 billion, while income from batteries and solar power rose 15 percent to CNY12.1 billion.

BYD, which is backed by billionaire investor Warren Buffett, put nearly CNY8.6 billion into research and development last year, an increase of 1.6 percent.

For this quarter, BYD expects net profit in the range of CNY200 million to CNY300 million (USD30.5 million to USD45.7 million), as much as doubling from a year ago, based on a prediction for robust EV sales.

The company is also advancing its chip business. BYD Semiconductor has completed its reorganization, introduced strategic investors, and begun preparatory work for a spin-off listing.

BYD's technologies are also gaining recognition abroad. After releasing its blade batteries last year, BYD unit Fudi Battery has negotiated with several global carmakers about cooperating on the novel technology, which has improved safety and energy density.

Editor: Emmi Laine, Xiao Yi