Shares of Chinese electric-vehicle manufacturer BYD dropped nearly 5% in Hong Kong trading on Monday following the disclosure of its interim financial results released on Friday.
For the second quarter, BYD reported net profit of 8.2 billion yuan, representing a 30% increase compared to the prior year, while revenue declined 3% year-on-year to 194.6 billion yuan. On a first-half basis, the company generated total revenue of 344.8 billion yuan, down 7.1% from the equivalent prior-year period. Net profit attributable to shareholders fell 20.5% to 12.3 billion yuan over the same six-month span.
The automaker attributed its profit decline to challenging market conditions in China’s automotive sector, citing sluggish domestic demand offset by strong international sales growth. BYD also highlighted pressure from intense competitive pressures and rising expenses for commodity inputs, raw materials, and semiconductor components, which compressed profit margins across the industry.
Despite domestic headwinds, BYD’s export performance strengthened significantly, with overseas vehicle sales rising 67.8% year-on-year to 792,000 units in the first half. Within the Chinese market, the company’s premium and mainstream brands including FANGCHENGBAO, Denza, and Yangwang achieved combined sales growth of 61% year-on-year, accounting for 12.8% of overall passenger vehicle sales.
Citi analysts anticipate BYD’s third-quarter core earnings will reach 13.5 billion yuan and projected full-year net profit of 41.2 billion yuan, potentially exceeding consensus estimates by approximately 8%.
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