BYD Semi-Annual Report: Structural Adjustment Underway, Breakthroughs on Overseas and Premium Lines

On the evening of August 28, BYD (002594.SZ) released the 2026 semi-annual financial report. Revenue for the first half of the year was 344.8 billion yuan, net profit attributable to the parent company was 12.3 billion yuan, R&D investment was 28.9 billion yuan, and cash reserves stood at 167.4 billion yuan. In terms of total volume, revenue and profit saw a year-on-year decline—revenue fell by 7.13%, and net profit attributable to the parent company dropped by 20.54%. However, positive signals were released at the structural level: net profit in the second quarter grew by 30% year-on-year, gross margin continued its upward trend, reaching 18.9%, a new high in nearly a year, with profitability showing a quarterly recovery trend.

With intensifying competition in the automotive industry, BYD, relying on its stable operational foundation and continuously optimized business structure, maintained a positive development trend in the first half of the year, with resilient growth solidifying its industry position.

Overseas Revenue Surpasses Domestic for the First Time, Globalization Shifts from Quantity to Quality

During the first half of the year, BYD's overseas sales reached 790,000 units, a 68% year-on-year increase, with business covering over 120 countries and regions worldwide. More significantly, overseas operating revenue was 181.268 billion yuan, accounting for 52.57% of total revenue, marking the first time overseas revenue exceeded domestic revenue. This reflects that BYD's globalization has transcended the stage of simple sales growth and entered a new cycle of localized production and deep integration of channel networks. In core markets such as the UK, Brazil, and Thailand, BYD ranks first in new energy vehicle brand sales; as production capacity in Brazil, Thailand, and other places gradually comes online, the support of the overseas segment for the company's performance will further strengthen.

Premiumization Progress Steadily, Profitability Structure Continues to Improve

The premium product matrix accelerated volume growth. The combined sales of the three major brands—Fang Cheng Bao, Denza, and Yangwang—reached 228,000 units, a 61% year-on-year increase, accounting for 12.6% of total sales. Among them, Fang Cheng Bao brand sales reached 160,000 units, a 163% year-on-year increase; Denza brand sales in June broke through 20,000 units for the first time, with an average product price maintained at 360,000 yuan; Yangwang became the fastest brand to break through 10,000 units among domestic new energy million-yuan luxury cars.

The increased proportion of premium models had a substantive positive impact on the profitability structure. Net profit in the second quarter grew by 30% year-on-year, and gross margin reached 18.9%, a new high in nearly a year. It is worth noting that net profit attributable to the parent company in the first half of the year declined year-on-year, mainly due to exchange losses caused by exchange rate fluctuations (financial expenses increased significantly year-on-year) and continued high growth in R&D investment. The company's main business profitability remained stable, and operating cash flow reached 37.335 billion yuan, a year-on-year increase of 17.28%, with good cash flow quality.

R&D Investment Continues at High Intensity, Technical Achievements Enter Implementation Phase

R&D investment in the first half of the year was 28.9 billion yuan, approximately 2.35 times the net profit of the same period, with cumulative R&D investment exceeding 270 billion yuan, maintaining leadership among A-share listed companies. High-intensity investment is translating into perceptible technical achievements: the second-generation Blade Battery and Flash Charging technology were released in March, with charging speed indicators setting new industry records and receiving recognition from the Ministry of Industry and Information Technology; under the "Flash Charging China" strategy, 10,000 flash charging stations have been built nationwide, covering 332 cities, with plans to deploy 6,000 flash charging stations overseas within a year. In terms of intelligence, the self-developed 4nm process intelligent driving chip Xuanji A3 was released, the number of vehicles with assisted driving exceeded 3.52 million, and Heavenly Eye generates over 220 million kilometers of data daily. Technical accumulation and data scale effects are building differentiated competitive barriers for BYD.

Social Responsibility and Sustainable Development Go Hand in Hand

In the first half of the year, BYD's total domestic tax contribution amounted to 22.3 billion yuan, far exceeding the net profit of the same period, reflecting the enterprise's tax contribution. The company has set a goal to "achieve carbon neutrality across the entire value chain by 2045". In the first half of the year, carbon emission reductions for new energy vehicles over their full life cycle reached 23.17 million tons, with ESG performance ranking among the top domestic enterprises.

Conclusion

In the first half of 2026, amidst phased fluctuations in revenue and profit, BYD completed a substantive restructuring of its revenue structure—overseas share surpassed domestic for the first time, the proportion of premium model sales increased to 12.6%, and gross margin improved quarter by quarter. These structural changes mean that growth momentum is shifting, rather than being a simple cyclical fluctuation. With the release of overseas production capacity in the second half of the year, accelerated layout of the flash charging network, and the promotion of the premium new product cycle, annual performance is expected to improve quarter by quarter. Short-term profits are disturbed by exchange rates and R&D investment, but the foundation of the main business is stable, and the long-term development resilience is worth watching.