Chinese electric-vehicle manufacturer BYD experienced a significant decline in its stock price in Hong Kong on Monday following the disclosure of its interim financial results announced the previous Friday. The company’s shares fell nearly 5% in response to the earnings release.
BYD’s financial performance reflected mixed results across its business segments. During the second quarter, the company reported net profit of 8.2 billion yuan, representing a 30% increase compared to the prior year. However, revenue declined 3% year on year to 194.6 billion yuan during the same period, according to analysis by Citi following the results announcement.
For the first half of the period, BYD reported total revenue of 344.8 billion yuan, representing a 7.1% decline from the equivalent period in the prior year. Net profit attributable to the company’s shareholders fell 20.5% to 12.3 billion yuan, indicating a more significant contraction in profitability than in revenue. The company attributed these results to challenging market conditions, including sluggish domestic demand in China’s auto industry alongside strong export performance.
BYD noted that the competitive environment intensified during the first half, with rising costs for commodities, raw materials, and semiconductors further pressuring profit margins across the automaker sector. Despite these headwinds, BYD’s international vehicle exports demonstrated robust growth, rising 67.8% year on year to 792,000 units. Within the domestic Chinese market, the company’s higher-end brands—including FANGCHENGBAO, Denza, and Yangwang—grew combined sales by 61% year on year, accounting for 12.8% of total passenger vehicle sales.
Citi analysts projected that BYD’s third-quarter core earnings would reach 13.5 billion yuan and estimated full-year net profit at 41.2 billion yuan, suggesting potential outperformance relative to market consensus by approximately 8%.
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