Nan Fang Du Shi Bao·2025-05-30 14:01Core Viewpoint - The recent discussions comparing BYD to Evergrande in the automotive industry have sparked significant debate, particularly regarding BYD's total liabilities of 594.3 billion yuan for 2024, which has drawn scrutiny from the media and industry insiders [2][3]. Financial Performance - As of the end of 2024, BYD's total liabilities stand at 584.67 billion yuan, with total assets of 783.36 billion yuan, resulting in a debt-to-asset ratio of 74.64% [4]. - BYD's debt structure reveals that 88% of its liabilities are non-interest-bearing, including accounts payable of 241.6 billion yuan (41.3% of total liabilities), contract liabilities of 43.7 billion yuan (7.5%), and other payables of 145 billion yuan (24.8%), while interest-bearing debt constitutes only 5.9% at 34.5 billion yuan [4][6]. - The company's accounts payable as a percentage of revenue is 31%, which is lower than competitors like Changan and NIO, indicating a healthier financial position [4]. Cash Flow and Profitability - BYD's operating cash flow for 2024 reached 133.45 billion yuan, with a net profit of 40.25 billion yuan, demonstrating strong cash generation capabilities that can cover short-term debts [6][12]. - The company has invested 54.2 billion yuan in R&D in 2024, supporting technological advancements and contributing to a sales volume of 4.27 million units, making it the top seller in the global electric vehicle market [6][14]. Industry Context - High debt levels are common in the automotive industry, with global peers like Ford and General Motors showing debt-to-asset ratios above 70% [8][10]. - BYD's debt ratio of 70.71% in 2025 is significantly lower than the average of over 80% for other new energy vehicle companies, positioning it within a healthy range [10][16]. - The automotive sector is characterized by heavy asset requirements, and a debt ratio between 60% and 80% is often a strategic choice for expansion and technological development [10][12]. Market Position - In the first quarter of 2025, BYD's sales reached 1.001 million units, marking a year-on-year increase of 59.81%, solidifying its leadership in the global electric vehicle market [13][14]. - The company has maintained a competitive edge through continuous investment in technology and product development, which is essential for sustaining growth in a rapidly evolving market [14][16].