Chinese electric-vehicle manufacturer BYD experienced a share price decline following the disclosure of its interim financial results. The company’s stock fell nearly 5% in Hong Kong trading in response to the earnings announcement released on Friday.
BYD’s financial performance reflected mixed results across different timeframes. For the second quarter, the company generated net profit of 8.2 billion yuan, representing a 30% increase compared to the prior-year period. However, revenue during the same quarter declined 3% year-on-year to 194.6 billion yuan. On a broader basis, first-half revenue reached 344.8 billion yuan, down 7.1% from the corresponding prior-year period, while net profit attributable to shareholders fell 20.5% to 12.3 billion yuan.
BYD attributed the earnings pressure to multiple industry-wide and company-specific headwinds. The automaker cited sluggish domestic demand within China’s auto sector, alongside elevated competition and rising expenses for commodities, raw materials, and semiconductor components, which compressed profit margins across the industry.
The company’s export operations demonstrated stronger momentum, with vehicle exports climbing 67.8% year-on-year to reach 792,000 units during the first half. Domestically, BYD’s premium brands including FANGCHENGBAO, Denza, and Yangwang collectively expanded sales by 61% compared to the prior year, capturing 12.8% of the group’s total passenger vehicle sales.
Analyst expectations for the remainder of the year suggested potential recovery. Citi projected third-quarter core earnings of 13.5 billion yuan and anticipated full-year net profit of 41.2 billion yuan, which would potentially exceed consensus forecasts by approximately 8%.
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