Evening of August 28, BYD ([002594.SZ](002594.SZ)) officially released 2026 semi-annual financial report, company's multiple operating data performed robustly. During the reporting period, revenue reached 344.8 billion yuan, net profit attributable to shareholders 12.3 billion yuan, R&D investment 28.9 billion yuan, cash reserves as high as 167.4 billion yuan. Among them, second quarter performance was particularly bright, net profit rose 30% year-on-year, gross margin increased to 18.9%, reaching a new high in the past year, company profitability continues to improve.

Currently, the automotive market competition is becoming increasingly fierce, BYD relies on solid operating fundamentals and continuously optimized business structure, overall development momentum in the first half of the year was strong, further consolidating its industry leading position.

Offshore and High-end Dual Line Effort, Uncover New Growth Space

In the first half of the year, BYD's overseas market sales reached 790,000 units, surging 68% year-on-year, business map has covered over 120 countries and regions, won new energy vehicle sales champion in key overseas markets such as UK, Brazil, Thailand. With overseas local factory capacity gradually released, sales channels continuously improved, overseas business has become an important driving force for pulling BYD's performance growth.

The high-end brand segment also delivered impressive results, Fang Cheng Bao, Denza, YangWang three high-end brands first half year total sales 228,000 units, growing 61% year-on-year, sales share increased to 12.6% of total sales. Among them, Fang Cheng Bao sales 160,000 units, year-on-year increase 163%; Denza June single month sales first broke through 20,000 units, product average selling price reached 360,000 yuan; YangWang as domestic million-level luxury new energy brand, also domestic first sales quickly broke ten thousand million luxury car brand.

The dual drive of internationalization and high-endization drove continuous optimization of the product structure and boosted second-quarter profitability improvements. The net profit in this report was affected by exchange losses caused by exchange rate fluctuations, but the company's main business profitability remained stable, fully demonstrating strong operating resilience.

Heavy R&D Investment, Hard-core Technology Accelerates Commercialization

Behind the impressive operating results lies continuous high investment in R&D support. 2026 first half BYD R&D investment 28.9 billion yuan, cumulative R&D investment broke through 270 billion yuan, firmly ranking in the first echelon of R&D investment in A-shares.

Major R&D investments were quickly converted into actual product technology results. This March, the second-generation Blade Battery and Flash Charge technology were officially released, refreshing the global record for production vehicle charging speed, solving the long-standing industry difficulties of slow charging and low-temperature charging, received recognition from the Ministry of Industry and Information Technology. Capacity construction and Flash Charge station layout matching it were promoted synchronously, 10,000 Flash Charge stations have now been built domestically, covering 332 cities nationwide; meanwhile planning to land 6,000 Flash Charge stations overseas in the coming year, helping popularize electrification globally.

The intelligent driving field also achieved major breakthroughs. In May, BYD announced achieving city navigation safety guarantees, combined with the previous intelligent parking safety guarantee, becoming the global only vehicle enterprise to achieve intelligent driving 'Dual Safety Guarantees'. By end of July, the volume of BYD vehicles equipped with assisted driving exceeded 3.52 million units, the God's Eye System generates over 220 million kilometers of driving data daily. The self-developed 4nm intelligent driving chip, Xuanji A3, officially appeared, completing full-stack self-research from bottom-layer chips to software systems, continuously promoting innovation in automotive intelligence.

Upholding Corporate Responsibility, Practicing Green and Low-Carbon Development

Beyond operational development, BYD actively assumes social responsibility. Taxes paid domestically in the first half of 2026 totaled 22.3 billion yuan. The enterprise established a 2045 full value chain carbon neutrality goal, ESG comprehensive performance ranked among the forefront of domestic enterprises. In the first half of the year, the new energy vehicles under the brand reduced carbon emissions by a total of 23.17 million tons over their full life cycle, equivalent to planting 386 million trees, contributing solidly to the green and low-carbon cause.

Outlook for the Second Half

In the first half of 2026, the global automotive industry structure was reshaped, many car enterprises faced profit pressure, BYD achieved counter-trend growth, multiple core indicators in the second quarter reached new peaks. Outlook for the Second Half, new technologies continue to land, the proportion of high-end models further improved, the overseas layout entered the harvest stage, the company's profitability is expected to continue to be released, the full-year performance has a favorable basis. Relying on technology innovation, global layout, and a high-end product matrix, operating quality and efficiency achieved a steady increase, BYD is reshaping its own growth path, continuously leading the transformation of the global new energy vehicle industry.

On the evening of August 28, BYD (002594.SZ) released its financial report for the first half of 2026, with operational resilience remaining stable: operating revenue of 344.8 billion yuan, net profit attributable to parent company of 12.3 billion yuan, R&D investment of 28.9 billion yuan, and cash reserves of 167.4 billion yuan. Of note, net profit in Q2 grew by 30% year-on-year, the gross margin continued to rise, reaching 18.9%, setting a new high for nearly a year, and profitability improved steadily.

With intensifying competition in the automotive industry, BYD, relying on a robust operational foundation and continuously optimized business structure, maintained a positive development trend in the first half of the year, further consolidating its leading industry position.

Overseas High-End Dual-Drive, Growth Structure Continues to Improve

In the first half of the year, BYD's overseas sales reached 790,000 units, a 68% year-on-year increase. Business coverage spans over 120 countries and regions worldwide. It topped the sales charts for new energy vehicle brands in core markets such as the UK, Brazil, and Thailand. With the successive release of localized overseas production capacity and the continuous improvement of channel systems, the overseas segment has become an important engine driving the company's performance growth.

During the same period, the high-end product matrix accelerated volume growth. The three brands Fang Cheng Bao, Denza, and Yangwang had a combined sales volume of 228,000 units, up 61% year-on-year, accounting for 12.6% of total sales. Among them, Fang Cheng Bao brand sales reached 160,000 units, up 163% year-on-year; Denza brand also performed brilliantly, with June sales exceeding 20,000 units for the first time, with an average product price of 360,000 yuan; Yangwang is the brand with the fastest sales breakthrough to 10,000 units among domestic new energy million-level luxury cars.

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Internationalization and high-endization progressed on two lines, promoting continuous optimization of the company's product structure and steadily enhancing profitability. Net profit in Q2 grew by 30% year-on-year, gross margin reached 18.9%, setting a new high for nearly a year. Although net profit was under short-term pressure, a closer look reveals it was mainly due to exchange loss caused by exchange rate fluctuations this year. The company's main business profitability remained stable, highlighting development resilience.

Huge R&D Investment Builds Moat, Technology Achievements Land Frequently

Operational quality rose steadily, with core drivers lying in continuous technological breakthroughs. In the first half of 2026, the company's R&D investment was 28.9 billion yuan, far exceeding net profit for the same period, retaining the title of "King of R&D" in A-shares. Cumulative R&D investment has surpassed 270 billion yuan.

High-intensity R&D investment is accelerating conversion into perceivable technological achievements. The second-generation Blade Battery and fast-charging technology released in March this year set a global record for the fastest charging speed for mass production, overcoming the global challenges of "slow charging" and "difficult charging at low temperatures", gaining authoritative recognition from the Ministry of Industry and Information Technology. Beyond technical breakthroughs, second-generation Blade Battery capacity and fast-charging station construction are accelerating simultaneously. Relying on the "Fast Charge China" strategy, currently 10,000 fast-charging stations have been built nationwide, covering 332 cities, with a plan to deploy 6,000 fast-charging stations overseas within a year, helping global electrification achieve leapfrog development.

Key progress was also made in the field of intelligence. Following the safety guarantee for intelligent parking, BYD took the lead in May in promising safety guarantee for city navigation, becoming the only "double guarantee" enterprise globally, promoting the popularization of assisted driving with practical actions. As of July 31, the number of BYD assisted driving models in use exceeded 3.52 million units, Tianzhi generates over 220 million kilometers of data daily. Released at the same time, Xuanji A3 is China's first self-developed 4nm process intelligent driving chip. From underlying chips to system software, BYD continues to promote vertical integration and full-stack in-house R&D, leading the intelligent transformation of the global automotive industry.

Development with Responsibility, Actively Fulfilling Social Responsibilities

Practicing social responsibility, BYD answers with actions. In the first half of 2026, BYD's total domestic tax payment reached 22.3 billion yuan, far exceeding net profit for the same period. In terms of sustainable development, the company firmly anchors the goal of "achieving carbon neutrality across the entire value chain by 2045", with ESG performance consistently ranking in the first tier of domestic enterprises. From January to June, BYD new energy vehicles achieved a carbon emission reduction of 23.17 million tons over their full life cycle, equivalent to planting 386 million trees, contributing practical force to low-carbon transformation.

Conclusion

In the first half of 2026, the global automotive industry accelerated restructuring, with industry profitability generally under pressure. BYD broke through against the trend, reaching a new level with Q2 performance. With continuous technological achievements emerging in the second half, a steadily increasing proportion of high-end models, and globalization layout entering the harvest period, corporate profitability and development potential will be further highlighted. Annual performance is expected to improve quarter by quarter and continue to rise. From technological breakthroughs to global layout, from high-end breakthrough to responsibility, the company is reshaping growth logic with comprehensive competitiveness, leading the global industrial transformation.