BYD's Revenue and Profit Both Decline in H1, Overseas Revenue Share Exceeds 50%

Recently, BYD (002594.SZ, 01211.HK) released H1 2026 performance results. During the period, BYD and its subsidiaries (collectively referred to as "BYD Group") achieved revenue of 344.815 billion yuan, a year-on-year decline of 7.13%; gross margin 18.85%, an increase of 0.74 percentage points compared to the same period last year; net profit attributable to the parent company was 12.325 billion yuan, a year-on-year decline of 20.54%, which is a rare dual decline in revenue and profit for BYD in recent years.

On the surface, exchange losses appear to be the biggest drag, but deeper pressure stems from a year-on-year decline in automotive business revenue of 8.98%. Periodic domestic demand pressure and industry "price wars" are eroding the foundation of this global new energy sales champion.

At the same time as profits declined, an asset-heavy layout centered on fast-charging stations is accelerating. According to the "Fast Charge China" strategy, BYD plans to build 20,000 fast-charging stations by the end of 2026. In a cycle of intensifying industry competition, when this investment will become profitable and how much it will earn will directly affect BYD's market competitiveness in the next stage.

 Overseas Revenue Share Exceeds 50%

The financial report mentions that due to periodic pressure on domestic market demand in the first quarter and the continuation of price wars, sales of BYD's main brand were squeezed. In the first half of the year, the group sold a total of 1.8085 million new vehicles, a 15.72% decrease year-on-year, of which passenger car sales were 1.7774 million.

However, structural changes are occurring. Sales of its mid-to-high-end brands Fang Cheng Bao, DENZA, and Yangwang combined increased by 61% year-on-year in the first half, accounting for 12.8% of the group's total passenger car sales; revenue from the group's automotive, automotive-related products, and other products was 275.341 billion yuan, down 8.98% year-on-year. Rough calculations show revenue per vehicle increased from 141,000 yuan in the same period last year to 152,200 yuan. The direction of premiumization has not wavered, but the volume is not yet sufficient to offset the decline in the main brand's sales.

The gross margin did not deteriorate with the revenue decline, approximately 18.85% this period, an increase of 0.84 percentage points compared to the same period last year; gross margin for automotive, automotive-related products, and other products was about 22.33%, an increase of 1.98 percentage points year-on-year, cost control remains effective. However, revenue shrinkage directly compressed the total gross profit, reducing it by 1.877 billion yuan compared to the same period last year. Combined with rigid expenses such as sales, management, and R&D, the profit margin narrowed further.

The most obvious change in the income statement comes from financial expenses, shifting from revenue of 3.247 billion yuan in the same period last year to an expense of 5.096 billion yuan, a difference of over 8.3 billion yuan. Among them, exchange losses were 4.703 billion yuan, while in the same period last year there were exchange gains of 3.16 billion yuan. This single non-operating fluctuation far exceeded the year-on-year decrease of 3.185 billion yuan in net profit attributable to the parent company.

Another signal is reflected in R&D. In the first half of the year, BYD Group's R&D investment was approximately 28.861 billion yuan, down 6.54% year-on-year, a rare decline. The absolute amount still remains high in the industry, but whether this change is an active contraction under profit pressure or a normal fluctuation in the R&D cycle still requires verification in subsequent quarters.

As the domestic market engages in a tug-of-war in the price war, the overseas market provides relatively stable support for BYD. In the first half of the year, the group exported a cumulative 792,000 new vehicles, a 67.8% increase year-on-year. Overseas revenue increased by 33.92% year-on-year to 181.268 billion yuan, and the gross margin of overseas business reached 21.71%, higher than the domestic gross margin level of 15.67%.

BYD H1 2026 Performance (Chart / Financial Report Screenshot)

BYD stated in the financial report that as of H1 2026, the group's new energy vehicle business map has covered six continents, 121 countries and regions globally, and has already invested in local production in Brazil, Thailand, etc. The group continues to promote localization layouts in design, R&D, manufacturing, supply chain, and market operations, and continues to strengthen brand communication, sales channels, after-sales services, and supporting capability construction, achieving deep adaptation in all scenarios.

 20,000 Fast-Charging Stations, BYD's Next "Gamble"

The domestic passenger car market has entered a stock competition stage. While solidifying the main brand's foundation and promoting premiumization, BYD also needs to find new growth points. Fast charging is precisely the move highly expected among them.

In March this year, BYD officially launched the second-generation Blade Battery and brand new fast charging technology, and released the "Fast Charge China" strategy. According to BYD, its launched fast charging pile has a single gun charging power reaching 1500kW, the highest single gun power among mass-produced charging piles globally; to break through grid capacity limits, it deeply integrates charging piles with super fast release energy storage systems, achieving high-power charging without increasing grid burden. On April 8 local time, fast charging technology completed its European premiere at the Paris Opera House, and BYD stated it plans to further scale and land 6,000 fast-charging stations overseas in the future.

While laying out technology and charging network layouts, fast charging capability is also rapidly spreading to the product side. In the first half of the year, BYD launched new fast-charging models such as Seal 07 EV, Song Ultra EV, Tang EV, and new DENZA Z9 GT, and successively added fast-charging versions for models under various brands including Sealion 06 EV, Seal 06 GT, Han EV, Bao 5, Bao 8, Ti 3, DENZA N9, Yangwang U7, and Yangwang U8.

According to the plan previously announced by BYD Group Chairman and President Wang Chuanfu, BYD is to build 20,000 fast-charging stations by the end of 2026. As of the end of June, 7,018 stations have been built.

In the first half of this year, BYD Group's investment activities resulted in a net cash outflow of 55.57 billion yuan, of which cash paid for purchase and construction of fixed assets, intangible assets, and other long-term assets reached 44.703 billion yuan. Although the financial report does not list the detailed expenses for building fast-charging stations, the "Fast Charge China" strategy, the half-year construction progress of 7,018 stations, the year-end goal of 20,000 stations, and energy supply ecosystem cooperation with multiple parties such as Sinopec, JD.com, KFC, and Shenzhou Car Rental all point to the fast-charging network being BYD's current key investment direction.

By the day before the financial report was released (August 28), the scale of BYD fast-charging station construction had reached 10,000, equivalent to building nearly 3,000 stations in two months.