BYD Electronic H1 Net Profit at RMB 426 Million, Down 75% YoY
Nashnova编辑部
BYD Electronic's first-half net profit collapsed 75% to RMB 4.26 billion even as revenue edged up 2% — the company sold slightly more but kept only a quarter of last year's profit, signaling severe margin compression.
Revenue rose — so why did profit collapse?
First-half revenue hit RMB 82.23 billion, up 2.02% year-on-year; net profit was just RMB 4.26 billion, down 75.35%.
This means → top-line scale held roughly flat, but costs consumed almost all the profit.
The squeeze came from both ends: upstream memory and materials costs surged, while weak smartphone demand pressured selling prices. Margins were crushed in between.
What went wrong with smartphone components?
Smart-device revenue totaled RMB 67.86 billion; within that, components brought in roughly RMB 11.91 billion, declining year-on-year.
In plain terms = global smartphone shipments fell 4.8% in H1 to 571 million units. Fewer phones sold means fewer components ordered.
A deeper driver: AI data centers are hoarding memory capacity, pushing up prices of core phone parts — weak demand plus rising costs hit components from both sides.
Assembly was the bright spot, boosted by orders from major overseas clients. Assembly revenue grew year-on-year, partly offsetting the component drag.
Can AI glasses and AI phones ride to the rescue?
BYD Electronic expanded into AI smartphones, AI glasses, and handheld cameras, reaching mass-production delivery.
But these new lines are still too small to offset the decline in legacy components.
This reflects a company actively looking for a second growth curve — yet moving from first shipments to meaningful profit contribution takes time.
Why is the EV business the sole bright spot?
Automotive revenue reached roughly RMB 13.62 billion, up 6.43% year-on-year, accounting for 16.56% of group revenue.
Product lines across intelligent driving, smart cockpits, smart suspension, and flash-charge control systems all expanded; the number of vehicle models they serve rose significantly.
This means → the auto segment is shifting from "side business" toward "growth engine" — but at under 20% of revenue, it cannot yet carry overall profitability.
China's own car market is shrinking — what is driving auto growth?
China's total vehicle sales fell 21.1% year-on-year in H1 2026 — the domestic market itself is contracting.
Yet China's auto exports surged 65.3%, with new-energy vehicle exports doubling year-on-year.
Put simply = domestic sales stalled, but exports are booming. BYD Electronic's auto-parts growth is largely riding the export wave.
What should investors watch in the second half?
Key checkpoint one: can smartphone demand recover? Component margins depend on it entirely.
Key checkpoint two: can auto's revenue share keep climbing from 16.56%? The pace determines whether the company can reduce its dependence on the phone business.
This reflects a company caught between an old engine losing power and a new one not yet at full thrust. The direction of these two numbers in H2 will shape the market's repricing of BYD Electronic.
市场有风险，内容仅供研究参考，不构成投资建议。