BYD’s Hong Kong-traded shares fell nearly 5% on Monday following the publication of the automaker’s interim financial results on Friday. The company’s second-quarter net profit totaled 8.2 billion yuan, representing a 30% increase compared to the same period a year prior, though revenue declined 3% year on year to 194.6 billion yuan.
For the broader first-half period, BYD reported total revenue of 344.8 billion yuan, down 7.1% from the prior-year period. Net profit attributable to the company’s shareholders fell more significantly, declining 20.5% to 12.3 billion yuan. The company attributed the challenging results to structural headwinds affecting the broader Chinese automotive sector, including weak domestic consumer demand alongside strong export momentum. Additionally, the company cited intense competitive pressures and elevated costs for raw materials, semiconductors, and other commodities as factors pressuring profitability across the industry.
Despite domestic headwinds, BYD demonstrated strength in international markets. Vehicle exports surged 67.8% year on year to reach 792,000 units during the first-half period. Within China’s market, the company’s premium and specialty brands—including FANGCHENGBAO, Denza, and Yangwang—achieved combined sales growth of 61% year on year, though these brands represented 12.8% of total passenger vehicle sales for the group.
Analysts at Citi offered a relatively positive outlook for the remainder of the year, projecting third-quarter core earnings of 13.5 billion yuan and full-year net profit of 41.2 billion yuan, which the firm suggested could exceed consensus estimates by approximately 8%.
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