Chinese electric-vehicle manufacturer BYD experienced a significant decline in its stock price following the disclosure of interim financial results. The company’s shares fell nearly 5% in Hong Kong trading, reflecting investor concerns about profitability trends despite continued revenue generation.
BYD reported mixed operational results for the first half of the period. Revenue totaled 344.8 billion yuan, representing a 7.1% decrease compared to the prior year. Net profit attributable to shareholders contracted 20.5% to 12.3 billion yuan. In the second quarter specifically, net profit reached 8.2 billion yuan, reflecting a 30% increase from the comparable quarter in the prior year, though overall revenue for that quarter fell 3% year on year to 194.6 billion yuan.
The company attributed the profitability challenges to multiple industry-wide factors affecting Chinese automakers. BYD cited sluggish domestic demand alongside competitive pressures that intensified during the period. Additionally, rising costs for commodities, raw materials, and semiconductor chips compressed profit margins across the company’s operations. Despite these headwinds, BYD’s export performance demonstrated strength, with international sales rising 67.8% year on year to 792,000 vehicles during the first half.
Within the domestic market, BYD’s premium brand portfolio showed resilience. Combined sales across brands including FANGCHENGBAO, Denza, and Yangwang grew 61% year on year, though these premium offerings represented 12.8% of the group’s total passenger vehicle sales. Financial analysts at Citi projected the company would generate third-quarter core earnings of 13.5 billion yuan, with full-year net profit forecasted at 41.2 billion yuan, potentially exceeding consensus estimates by approximately 8%.
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