BYD Shares Fall Nearly 5% as H1 Net Profit Drops 20.5%
BYD's Hong Kong-listed shares fell nearly 5% on August 31 after the company reported a 20.5% year-on-year decline in first-half net profit to RMB 12.3 billion. Second-quarter net profit rose 30% to RMB 8.2 billion, while revenue fell 3% to RMB 194.6 billion. Exports surged 67.8% to 792,000 vehicles.
On August 31, BYD's Hong Kong-listed shares fell nearly 5%, following the release of its interim results on August 28. The financial report showed second-quarter net profit of RMB 8.2 billion, up 30% year-on-year, with revenue of RMB 194.6 billion, down 3% year-on-year. For the first half, revenue totaled RMB 344.8 billion, down 7.1% year-on-year, while net profit attributable to shareholders was RMB 12.3 billion, a decline of 20.5%.
The company noted that China's auto industry faced weak domestic demand and strong export growth in the first half. Intense competition, along with rising costs for commodities, raw materials, and chips, squeezed automakers' profit margins. On the export front, BYD shipped 792,000 vehicles in the first half, up 67.8% year-on-year. In the domestic market, despite intensifying competition and temporary challenges to demand, combined sales of brands such as Fangchengbao, Denza, and Yangwang rose 61% year-on-year, accounting for 12.8% of the group's passenger vehicle sales.