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.