BYD's First Quarter Report: Net Profit Halved Year on Year

BYD Company's announcement on the Hong Kong Stock Exchange, the revenue for the first quarter of 2026 was 150.225 billion yuan, a year-over-year decrease of 11.82%.

The institutions' forecast range for Q1 revenue is usually between 150 billion and 180 billion yuan, and the actual revenue is close to the lower limit of the forecast. The year-on-year decline indicates that under the overall pressure in the industry, BYD's sales scale has also been significantly impacted.

The net profit attributable to the parent company was 4.085 billion yuan, a year-on-year decrease of 55.38%, which is below market expectations. Before the financial results were released, the net profit forecast center of mainstream brokerages and investment banks generally fell between 5 billion and 5.5 billion yuan, and more conservative institutions' bottom lines were usually also around 4.5 billion yuan.

BYD's performance may not have met expectations due to the fierce price war in China's automobile market at the beginning of 2026, significantly compressing the profit margin per vehicle. Although overseas sales increased (with a noticeable increase in the proportion of overseas sales this quarter), the scale effect in the domestic market weakened, failing to fully offset the gross profit loss caused by price reductions.

Furthermore, BYD's continued investment in智能化 and new generation battery technology is "rigid", and when revenue declines, the proportion of these expenses to revenue is magnified, directly lowering net profit.

Today's financial report released by BYD Electronics showed that the net profit for the first quarter was only 27.83 million yuan, a plunge of about 95% year-on-year, which has had a significant negative impact on the group's consolidated profit performance.