BYD Company Limited (002594.SZ) released its 2025 annual report on Friday evening, revealing an operating revenue increase of 3.46% to over 800 billion yuan, while net profit attributable to shareholders declined by 18.97% to 32.6 billion yuan. The company also announced a dividend per share of 0.358 yuan, equivalent to only one-tenth of the dividend paid in 2024.
BYD's technological capabilities remain impressive, particularly with its second-generation blade battery. Real-world tests demonstrated a range of 1,000 kilometers, a fast-charging time of 9 minutes, and only a 3-minute slowdown in charging speed at -30 degrees Celsius, setting industry benchmarks that competitors struggle to match. The claim by Chairman Wang Chuanfu that "no one understands batteries better than we do" appears well-founded.
The company's aggressive competitive tactics are also evident. A recent article highlighted a small company applying for an IPO that had not received payment from BYD for over six months, reflecting the pressure BYD places on its supply chain.
However, there are positive signs regarding BYD's payment practices to upstream suppliers. Against the backdrop of government regulations protecting small and medium-sized enterprises, BYD's accounts payable decreased from 244 billion yuan at the end of 2024 to 236.7 billion yuan by mid-2025, and further to 209.2 billion yuan by year-end 2025. This improving trend benefits suppliers, though it remains uncertain whether the specific small company mentioned will see similar relief.
This shift has increased financial pressure on BYD itself. The company's annual operating net cash flow fell below 60 billion yuan for the first time since 2020. Meanwhile, substantial increases in both short-term and long-term borrowing drove net financing cash inflow to over 100 billion yuan, a first in BYD's financial history.
BYD's competitive intensity extends beyond its supply chain to its sales strategy. While sales volume grew by 7.73% in 2025, revenue increased by only 3.46%, indicating a decline in average selling price per vehicle. This is reflected in the gross margin, which fell from 20.21% in 2023 to 19.44% in 2024 and further to 17.74% in 2025, explaining the significant profit decline despite slight revenue growth.
Market performance ultimately validates the data. A comparison with recent analyst reports provides context. Five research reports from Kaiyuan Securities, Bank of Communications International, Soochow Securities, Founder Securities, and AJ Securities—all released in March—offered forecasts ahead of the annual report.
Kaiyuan Securities, on March 2, raised its performance estimates for 2025-2027, projecting BYD's 2025 revenue at 814.9 billion yuan and net profit at 34.9 billion yuan, citing strong overseas performance and upcoming technologies and models.
Bank of Communications International, on March 9, provided a qualitative analysis noting BYD's sales pressure in the domestic market but strong growth overseas, particularly in Southeast Asia, Latin America, and Europe, expecting profit expansion as overseas sales share rises by 2026.
Soochow Securities, on March 16, anticipated revenue of 839.4 billion yuan and net profit of 35 billion yuan for 2025, citing continued innovation in electrification boosting market share.
Founder Securities, on March 17, projected revenue of 892.4 billion yuan and net profit of 35.2 billion yuan, noting that new models with higher starting prices could maintain profitability.
AJ Securities, on March 18, forecasted revenue of 851.6 billion yuan and net profit of 34.3 billion yuan, expecting BYD to transcend traditional automaker positioning through premiumization and globalization.
Actual reported revenue for 2025 was 804 billion yuan, 10.9 billion yuan below Kaiyuan Securities' lowest estimate and 88.4 billion yuan under Founder Securities' most optimistic forecast. Net profit of 32.6 billion yuan fell 1.7 billion yuan short of AJ Securities' lowest projection and 2.6 billion yuan below Founder Securities' highest expectation.
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