BYD net declines 90 percent in Q1

China's private carmaker BYD Co, backed by Warren Buffett, posted on Thursday a slump in first-quarter net profit compared with a year earlier. Net profit plummeted nearly 90 percent to 12 million yuan ($ 1.9 million) in the first three months, while revenue was 11.7 billion yuan, a drop of 9 percent from a year earlier.

The Shenzhen-based company is betting on wider adoption of electric cars and electric public transport vehicles for first-half improvement. It said in a statement that revenue from the traditional auto business dropped due to weak demand and a sluggish economy.

The electric car and mobile phone assembly sector is likely to grow and help cover this year's loss as a result of a new electric vehicle subsidy policy.