On August 28, Byd Company Limited (01211) released its 2026 interim results. During the period, the company generated RMB 344.8 billion in revenue, with net profit attributable to shareholders reaching RMB 12.3 billion and net operating cash flow at RMB 37.3 billion. The company’s performance staged a V-shaped rebound in the second quarter, with single-quarter revenue of RMB 194.6 billion, up 29.5% quarter-on-quarter; its gross margin hit 18.9%, a new high over the past year; and net profit attributable to shareholders reached RMB 8.24 billion, surging 101.8% sequentially. Against the backdrop of intensifying competition in the auto industry’s stock market, the business demonstrated a trajectory of high-quality development.
The operational resilience of BYD Company does not stem from short-term price cuts to boost volumes, but is jointly supported by steady sales, an upgraded product mix, and technology empowerment. On the sales front, Byd Company Limited sold 1.81 million vehicles cumulatively in the first half, with second-quarter passenger vehicle sales reaching 1.108 million units, up 58.2% from the prior quarter. According to the company’s production and sales bulletin, cumulative NEV sales from July to August reached 860,900 units, up 28.3% year-on-year; August alone saw sales of 440,700 units, a 24.8% increase year-on-year, sustaining solid delivery volumes even during the industry’s off-season and further cementing its leading market position.
Decomposing the core drivers behind BYD Company’s profitability improvement, much can be attributed to the structural transformation driven by premiumization and globalization. On the globalization front, overseas sales reached 790,000 units in the first half, up 68% year-on-year, with operations spanning more than 120 countries and regions worldwide. The company secured the top spot in NEV brand sales in key markets such as the UK, Brazil, and Thailand. Guojin Securities forecasts that full-year export sales could exceed 1.8 million units. On the premiumization side, the combined first-half sales of Fangchengbao, Denza, and Yangwang totaled 228,000 units, up 61% year-on-year, lifting their share of total sales to 12.6%. Notably, Fangchengbao sold 160,000 units, a 163% surge, as the product matrix continues its shift toward higher-value segments, raising the center of profitability.
The global recognition of its product strength is anchored in intensive R&D investment. In the first half of 2026, Byd Company Limited invested RMB 28.9 billion in research and development, far exceeding its net profit over the same period, and retained the top spot in R&D spending among A-share automakers, with cumulative R&D investment surpassing RMB 270 billion. The long-accumulated “technology fish pond” continues to yield innovative outcomes: from the second-generation blade battery and full-scenario flash charging technology, to the dual-safety redundant intelligent driving system and the self-developed 4nm process smart driving chip, Xuanya A3, covering core tracks including power batteries, charging ecosystems, and intelligent driving. On the infrastructure front, as of August 28, 10,000 flash charging stations had been officially completed nationwide, spanning 332 cities, showcasing the company’s robust capability in deploying supporting infrastructure.
Guolian Minsheng Securities noted that BYD is steadily advancing its premiumization strategy while deepening its globalization footprint, with flash charging technology enhancing product competitiveness and profitability. The firm believes the company is well-positioned to unlock medium-to-long-term growth space through its technological, product, and global advantages. Guolian Minsheng forecasts that BYD could achieve full-year 2026 revenue exceeding RMB 910 billion, with net profit attributable to shareholders surpassing RMB 40.2 billion.
From vehicle exports to ecosystem exports, and from scale expansion to value upgrading, BYD has transcended the competitive dimensions of traditional automakers. It is now building a full-chain advantage in technology, products, and infrastructure within the global electric vehicle industry, with the certainty of long-term growth becoming increasingly solid.
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