Shares of Chinese electric-vehicle manufacturer BYD experienced a decline following the disclosure of its interim financial results. The stock fell nearly 5% in Hong Kong trading after the company released earnings data on Friday.
For the second quarter, BYD reported net profit of 8.2 billion yuan, representing a 30% increase compared to the prior-year period. However, revenue during the quarter decreased 3% year over year to 194.6 billion yuan, according to analysis from Citi following the results announcement.
On a broader basis for the first half, BYD’s total revenue reached 344.8 billion yuan but declined 7.1% from the corresponding period a year earlier. Net profit attributable to the company’s shareholders fell 20.5% to 12.3 billion yuan. The automaker attributed these declines to challenging market conditions, noting that China’s auto sector contended with sluggish domestic demand despite strong export performance. The company also cited mounting pressures from competitive dynamics and elevated costs associated with commodities, raw materials, and semiconductor components.
Despite domestic headwinds, BYD demonstrated strength in international markets, with exports surging 67.8% year over year to reach 792,000 vehicles during the first half. Within China, the company’s premium and mid-market brands including FANGCHENGBAO, Denza, and Yangwang collectively expanded sales by 61% year over year, capturing 12.8% of the group’s total passenger vehicle sales.
Analysts at Citi projected that BYD’s third-quarter core earnings would reach 13.5 billion yuan, with full-year net profit potentially totaling 41.2 billion yuan—a level expected to exceed consensus estimates by approximately 8%.
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