(Yicai) Aug. 29 -- BYD’s shares rose after the Chinese electric car and battery giant said profit soared 205 percent in the first half from a year ago, mainly due to strong sales of new energy vehicles.

BYD [SHE: 002594] jumped 4.8 percent to finish at CNY246.71 (USD33.92) in Shanghai today, while its Hong Kong-listed shares [HKG: 1211] soared 5.6 percent to HKD237.80 (USD30.31) each.

Net profit was CNY11 billion (USD1.5 billion) in the six months ended June 30, the Shenzhen-based firm said in an earnings report released yesterday. Revenue surged 73 percent to CNY260.1 billion (USD35.7 billion), with its auto business accounting for 80 percent and its handset assembly business making up the rest.

Despite tougher competition and the challenges posed by the end of new energy vehicle subsidies, BYD’s new energy passenger car business maintained good profitability thanks to continuous improvement of brand strength, expanding economies of scale, and efficient cost controls along the industrial chain, coupled with a drop upstream raw material prices, BYD noted.

Auto business revenue soared 91 percent to CNY208.8 billion. Its gross profit margin stood at 21 percent, up 4 percentage points from a year ago, while that of Tesla's was 17.9 percent.

Overseas income surged 93 percent to CNY64.4 billion. The company also announced plans to establish a big production base in Brazil to further expand its global presence, with it selling passenger cars in 54 countries and regions, including Japan, Germany, Australia, and Brazil. 

China's NEV sector and penetration rate of NEVs are both expected to continue growing in this half of the year, BYD pointed out.

BYD will continue with its multi-brand strategy, refine its product lineup, and introduce new product cycles to meet to diverse consumer needs, it said, adding that the firm will go on expanding its presence in overseas markets.

The automaker sold 1.26 million cars in the first half, with its NEV market share jumping to 35 percent from 27 percent a year earlier, according to data from the China Association of Automobile Manufacturers. The penetration rate of NEVs in China reached 28 percent, up 2.7 points.

Editor: Martin Kadiev