Shares of Chinese electric-vehicle manufacturer BYD fell nearly 5% in Hong Kong following the release of its interim financial results. The decline reflected investor concerns about the company’s profitability amid challenging market conditions.
For the second quarter, BYD reported net profit of 8.2 billion yuan, representing a 30% increase from the comparable period a year earlier. However, revenue during the quarter declined 3% year on year to 194.6 billion yuan, according to analyst assessments of the company’s disclosures.
On a first-half basis, the company’s performance showed more pronounced headwinds. Revenue totaled 344.8 billion yuan, down 7.1% compared to the prior-year period, while net profit attributable to shareholders fell 20.5% to 12.3 billion yuan. BYD attributed the earnings pressure to several factors affecting the broader Chinese automotive sector, including sluggish domestic demand paired with robust export activity, as well as intensifying competitive pressures and elevated costs for commodities, raw materials, and semiconductor components.
Despite domestic market challenges, BYD achieved significant growth in international sales, with exports rising 67.8% year on year to 792,000 vehicles during the first half. Within China, the company’s premium brands—including FANGCHENGBAO, Denza, and Yangwang—expanded sales 61% year on year, accounting for 12.8% of total passenger vehicle sales.
Analysts provided a constructive 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, potentially exceeding consensus expectations by approximately 8%.
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