Shares of Chinese electric-vehicle manufacturer BYD declined nearly 5% in Hong Kong trading on Monday following the release of the company’s interim financial results on Friday.
For the first half of the year, BYD reported total revenue of 344.8 billion yuan, representing a 7.1% decline compared to the same period the previous year. Net profit attributable to the company’s shareholders fell 20.5% to 12.3 billion yuan during the same timeframe. In the second quarter specifically, the company achieved net profit of 8.2 billion yuan, equivalent to approximately $1.2 billion, marking a 30% increase year over year, though revenue for that quarter declined 3% to 194.6 billion yuan.
The automaker attributed performance pressures to challenging market conditions within China’s automotive sector. Management cited sluggish domestic demand combined with robust export growth, while simultaneously contending with fierce competitive pressures and elevated costs for commodities, raw materials, and semiconductor chips that compressed profit margins across the industry.
On a positive note, BYD’s international performance showed strength, with exports reaching 792,000 vehicles during the first half, a substantial 67.8% increase from the prior year. Within the domestic market, despite headwinds from competition and temporary demand challenges, BYD’s premium brands including FANGCHENGBAO, Denza, and Yangwang demonstrated resilience, posting combined sales growth of 61% year over year and capturing 12.8% of the group’s total passenger vehicle sales.
Looking ahead, analyst expectations suggested more favorable near-term performance. Citi projected third-quarter core earnings of 13.5 billion yuan and estimated full-year net profit of 41.2 billion yuan, which the firm assessed as potentially 8% above market consensus estimates.
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