TLDR
- BYD stock fell nearly 5% in Hong Kong after reporting a 20.5% drop in first-half net profit to 12.33 billion yuan
- First-half revenue fell 7.1% to 344.82 billion yuan, hurt by weak domestic demand and fierce competition in China
- Q2 net profit rose 30% year on year to 8.2 billion yuan, offering some bright spots in the results
- Overseas revenue hit 181.27 billion yuan, topping 52% of total first-half revenue for the first time
- Citi forecasts full-year net profit of 41.2 billion yuan, potentially 8% above market consensus
BYD stock dropped nearly 5% in Hong Kong on Monday after the Chinese EV maker posted a sharp decline in first-half earnings, weighed down by a tough domestic market.
The stock fell to around HK$86.65, making it one of the biggest drags on the Hang Seng index, which slipped 0.4% on the day.
For the six months ended June 30, 2026, net profit attributable to shareholders fell 20.5% year on year to 12.33 billion yuan ($1.83 billion). Revenue dropped 7.1% to 344.82 billion yuan.
BYD’s overseas revenue overtook domestic business for the first time in H1 2026, making up 52.6% of its top line.
Total revenue, however, contracted 7.1% YoY to RMB 344.8B ($51.2B), with net profit sliding 20.5% to RMB 12.3B ($1.83B). $BYDDY #ChinaEV https://t.co/1GC9GiO5dv
— ChinaEV Home (@CNEVhome) August 31, 2026
BYD pointed to “sluggish domestic demand and robust export growth” as the key themes of the period. Rising costs for commodities, raw materials, and chips also squeezed margins across the industry.
China’s EV market has struggled over the past year after Beijing pulled back some key trade-in subsidies. Local consumers have been cautious on spending, pushing EV makers to aggressively cut prices to attract buyers. That strategy brought in volume but hurt profitability.
Despite the weak headline numbers, Q2 offered a clearer picture. Second-quarter net profit came in at 8.2 billion yuan, up 30% from the same period a year ago, according to Citi. Q2 revenue was 194.6 billion yuan, down just 3% year on year.
Overseas Business Takes the Lead
BYD’s international operations have become a major part of the story. Overseas revenue reached 181.27 billion yuan in the first half, accounting for more than 52% of total revenue. That marks the first time overseas sales have overtaken domestic operations.
Exports rose 67.8% year on year to 792,000 vehicles in the first half. The company has flagged international expansion as its next key growth driver, and those results suggest the strategy is gaining traction.
Premium Brands Grow Domestically
Even within China, BYD’s higher-end brands held up. Combined sales of FANGCHENGBAO, Denza, and Yangwang grew 61% year on year in the first half, making up 12.8% of the group’s total passenger vehicle sales.
That growth shows BYD is moving up the price ladder at home, even as the mass-market segment stays under pressure.
Citi expects BYD’s third-quarter core earnings to reach 13.5 billion yuan. The bank sees full-year net profit hitting 41.2 billion yuan, which would come in around 8% above the current market consensus.
BYD’s first-half overseas revenue of 181.27 billion yuan exceeded domestic revenue for the first time, marking a structural shift in where the company earns its money.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
