Chinese manufacturer of electric vehicles and batteries, BYD(OTC:) posted a 241 percent increase in profits for the first quarter. This is despite increased costs and disruptions to supply lines in the sector.

China Association of Automobile Manufacturers’ data shows that BYD made up about 17% of China’s 3 million new electric vehicles (NEVs), sold in China between 2021 and 2021.

“BYD has shown strong sales volume with limited impact from the Shanghai lockdown,” Daiwa Capital Markets analyst Kelvin Lau said.

“We remain positive on BYD achieving its target of 1.5 million units of sales volume, given its self-sufficient battery and chip supply capacity and strong new model launches in 2022,” he added.

The company also announced that BYD Auto Finance Co Ltd, BYD’s auto finance subsidiary, will raise RMB 6 billion in capital for the company through three current shareholders — BYD Co Ltd (OTC) – Bank of Xi’an, BYD Precision Manufacturing Co Ltd. Its registered capital will increase to RMB10 billion. This capital will allow for fast sales growth.

BYD will still hold 77 per cent, BYD Precision 3 percent, and Bank of Xi’an 20%.

By Michael Elkins