BYD dips 5% after revenue falls despite a Q2 profit rebound

BYD shares dropped nearly 5% in Hong Kong following Friday’s mid-year earnings release. While the EV giant managed to break its five-quarter losing streak, it did so only because exploding international sales—now over half its total revenue—bailed out a starkly slowing Chinese market. 

The company’s mid-year numbers show overseas revenue jumped 34% to $27 billion, representing more than 50% of its total business. The international expansion successfully cushioned a painful 31% decline inside Greater China.

However, the domestic price war still weighed on the bottom line, dragging total first-half revenue down 7.1% to 344.8 billion yuan ($51 billion) and trimming shareholders’ net profit by 20.5% to 12.3 billion yuan ($1.8 billion). 

Nonetheless, data from Citi show that the EV giant’s Q2 net profit surged 30% from the previous year to 8.2 billion yuan, equivalent to about $1.2 billion. 

BYD has made progress in overseas markets despite geopolitical risks

For some time, BYD has been feeling the heat at home due to brutal competition from companies like Geely and Xiaomi. With government subsidies drying up, the EV maker had no choice but to push hard into Europe and other global markets to keep growing. 

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