Shares of Chinese electric-vehicle manufacturer BYD declined nearly 5% in Hong Kong trading on Monday following the publication of its interim financial results. The company reported mixed performance across key metrics during the period under review.
For the second quarter, BYD achieved net profit of 8.2 billion yuan, representing a 30% increase from the corresponding period in the prior year. However, revenue declined 3% year on year to 194.6 billion yuan during the same quarter. Over the first half as a whole, the company reported total revenue of 344.8 billion yuan, down 7.1% compared with the preceding year. Net profit attributable to the company’s shareholders contracted 20.5% to 12.3 billion yuan for the half-year period.
BYD attributed the challenging results to industry-wide headwinds affecting Chinese automakers. The company cited sluggish domestic demand alongside robust export performance, coupled with intensifying competitive pressures and elevated costs for raw materials, commodities, and semiconductor components that compressed profit margins across the sector.
Despite domestic market difficulties, BYD’s export business showed substantial growth, with international vehicle sales rising 67.8% year on year to reach 792,000 units during the first half. Within China’s market, the company’s portfolio brands including FANGCHENGBAO, Denza, and Yangwang achieved combined sales growth of 61% year on year, representing 12.8% of the group’s total passenger vehicle sales.
Looking ahead, Citi projected the company would achieve third-quarter core earnings of 13.5 billion yuan. The brokerage also forecast full-year net profit of 41.2 billion yuan, potentially positioning results approximately 8% above consensus expectations.
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