{"text":[[{"start":11.18,"text":"China’s electric vehicle champion BYD reported lower than expected earnings for the second quarter, hit by Beijing’s crackdown on aggressive discounting and long-term supplier payment practices. "}],[{"start":25.36,"text":"The group’s first decline in quarterly profits for the first time in more than three years comes as growth in the Chinese EV market loses steam. The Shenzhen-based carmaker, which is vying for the world’s top EV maker position with Tesla, is eyeing further expansion overseas."}],[{"start":46.21,"text":"BYD’s net income dropped almost 30 per cent to Rmb6.4bn ($897mn), missing analysts’ expectations of Rmb10.7bn. The carmaker recorded a 14 per cent year-on-year rise in revenue to Rmb201bn in the three-month period, falling short of consensus forecasts of Rmb220bn. "}],[{"start":76.69,"text":"Second-quarter gross margin dropped to 16.3 per cent from 18.7 per cent a year earlier, as the company was forced to amend its supplier payment practices."}],[{"start":92.08,"text":"BYD promised in June to more than halve payment times to suppliers to 60 days, after Chinese regulators warned a dozen domestic car manufacturers against aggressive price cuts and mounting unpaid bills. BYD has long been criticised by suppliers for its long payment terms and issuance of promissory notes as an alternative to cash."}],[{"start":118.57,"text":"Exchanging faster payments for lower component pricing has been another common tactic used by BYD and its local peers."}],[{"start":128.91,"text":"The price war in China’s EV market has also cooled off, as the country’s top officials recently launched a counteroffensive against aggressive discounting on the back of surging production, known as neijuan. The average discount offered by 11 major carmakers in China, including BYD and Tesla, narrowed to 6.7 per cent in early August from a peak of 8 per cent in the second half of June, according to Citi analysts."}],[{"start":161.95,"text":"The auto sector has been among the key targets in Beijing’s campaign against neijuan. The price cuts have been adding to China’s stubborn deflationary pressures, one of China’s key economic problems, and fuelling tensions with the country’s biggest trading partners as companies turn to exports. "}],[{"start":182.79999999999998,"text":"The results announcement came after the market close on Friday, but ahead of the report, BYD’s shares had fallen 25 per cent from a record high in May, when the group’s “God’s Eye” advanced driver-assistance system and the release of its five-minute battery charging technology buoyed investor optimism. "}],[{"start":204.08999999999997,"text":"Outside the competitive home market, BYD is enjoying greater momentum abroad. The group’s overseas sales of battery-powered vehicles and plug-in hybrids more than doubled to 550,000 units in the first seven months of the year. "}],[{"start":221.22999999999996,"text":"BYD is benefiting from Tesla’s recent retreat in Europe, where the Chinese automaker sold more EVs than the Elon Musk-led group for the first time in May. With its inroads into the continent coinciding with a consumer backlash against Musk’s political activism, BYD’s plan to start production at its new Hungary and Turkey factories as soon as this year is expected to expand its global footprint and cushion tariff risks. "}],[{"start":252.70999999999995,"text":"The Warren Buffett-backed company has built a fleet of six car-carrying “roll-on, roll-off” ships for exports, the management said in a filing on Friday, while hinting at adding more overseas production capacity to “fully prepare for a surge in international demand”."}],[{"start":281.23999999999995,"text":""}]],"url":"https://audio.ftmailbox.cn/album/a_1756683966_5904.mp3"}