Facing market concerns over a pressured first quarter in sales and financials, coupled with a declining share price this year, BYD Company Limited Chairman Wang Chuanfu directly addressed core doubts, stating the "worst is over" and setting a target to become the world's largest automaker by scale by 2030.
On June 9, the Inspirational Hall at BYD's headquarters in Shenzhen's Pingshan district was packed, with nearly a thousand shareholders and representatives in attendance, half of whom were BYD vehicle owners. This historically large meeting, dubbed the "Thousand-Person Shareholders' Meeting" by the market, required a move from the usual conference room to the larger venue.
The beginning of 2026 presented BYD with short-term challenges as multiple pressures converged.
First-quarter financial results showed revenue of 150.23 billion yuan, a year-on-year decrease of 11.8%, and net profit attributable to shareholders of 4.08 billion yuan, down 55.4% year-on-year. This dual decline in revenue and profit drew significant market attention.
Sales also faced pressure, with first-quarter new energy vehicle sales at 700,000 units, a 30% drop year-on-year, with the impact particularly pronounced in the domestic market.
The adjustment of the new energy vehicle purchase tax from exemption to a 50% reduction starting in 2026 led to a pull-forward of demand at the end of 2025, significantly impacting BYD as a pure-play new energy vehicle manufacturer.
Concurrently, the appreciation of the Renminbi in the first quarter resulted in substantial foreign exchange losses. Financial expenses shifted from a gain of 1.9 billion yuan in the same period last year to a loss of 2.1 billion yuan, which alone eroded nearly 80% of the quarter's profit. Additionally, production capacity for the second-generation Blade Battery was in a ramp-up phase, with supply constraints limiting vehicle deliveries, further affecting sales and revenue realization.
The volatility in performance and sales directly impacted the capital markets, with BYD Company Limited shares trending lower throughout the year. As of the close on June 9, the A-share price was 90.31 yuan per share, down 1.72% for the day. Hong Kong-listed shares also faced pressure, closing at 86.6 HKD per share, a decline of 2.04%.
In response to shareholder concerns that the "share price does not reflect the company's potential," Wang did not avoid the issue.
He acknowledged that the current share price indeed does not match the company's intrinsic value and that management fully understands shareholders' anxiety and dissatisfaction. "BYD Company Limited is a long-term player. From a 20-person team 30 years ago to today, 'technology as king, innovation as the foundation' remains our unwavering belief," Wang emphasized. He stated the company would not engage in short-term speculation, always prioritizing growth driven by technological innovation and rewarding shareholders with long-term performance, urging patience.
Regarding the first-quarter trough, Wang clearly indicated a "turning point has arrived." He noted that January-February was the period of greatest pressure as the impact of the purchase tax policy adjustment fully materialized. Following the official launch of the second-generation Blade Battery and flash-charging technology in March, market orders rebounded rapidly. Sales turned positive in May, reaching 383,500 units for the month, signaling that "the worst is over."
For the second half of the year and long-term development, Wang outlined a clear growth path centered on three core strategies: production ramp-up, in-house technology R&D, and overseas expansion. He articulated a development cadence: "Focus on batteries this year, capacity next year, and aim for global number one by 2030."
On the production front, battery output is the current core bottleneck. Wang stated plainly, "How many cars BYD can sell this year depends not on orders, but on battery production." Current second-generation Blade Battery capacity is ramping up steadily at a rate of 20,000 to 30,000 units per month, with the team fully dedicated to expanding production to ensure vehicle deliveries.
He expects battery capacity to be gradually released this year, with larger-scale capacity landing in 2027, which will drive significant sales growth by supporting both domestic and international markets.
Regarding cash flow, Wang was clear that with capacity release and sales recovery, the company's cash flow is expected to return to strong levels in the fourth quarter of 2026. On the technology front, massive investment is fortifying the in-house R&D moat. In the intelligent driving domain, BYD Company Limited has cumulatively invested 100 billion yuan, assembling a team of 4,000-5,000 people. Its full vehicle lineup offers the optional "Eye of the God" intelligent driving system, with BYD guaranteeing compensation for compliant accidents to alleviate user concerns. Core chips have achieved self-sufficiency with the in-house developed 4-nanometer Xuanji A3 intelligent driving chip, completely eliminating dependence on external chips and building a core barrier against supply chain vulnerabilities.
Charging technology continues to advance. The second-generation Blade Battery offers improvements in both range and fast-charging, with flash-charging technology enabling 300 km of range replenishment in 5 minutes. BYD is also building megawatt-level flash-charging stations open to the entire industry without BYD branding, aiming to create public charging infrastructure.
Overseas markets have become a core growth engine, accounting for 45.6% of sales in the first quarter, with May overseas sales surging 133.6% year-on-year.
Wang announced an upward revision of the 2026 overseas sales target from 1.5 million units, expecting to exceed the goal. Factories in Brazil, Hungary, and Thailand are already operational, with strong demand in the Middle East and Australia. Localized production capacity and supply chain layout are progressing, accelerating the transition from "BYD of China" to "BYD of the World."
Based on its technology reserves and dual-market layout, Wang set a clear long-term target: leveraging the second-generation Blade Battery, flash-charging, and new technologies in the coming years, BYD Company Limited aims to become the world's largest automaker by scale by 2030.
Throughout the meeting, "long-termism" was the keyword Wang repeatedly emphasized.
He clearly stated that BYD adheres to the principle of "competing on value, not price," avoiding blindly following price wars or disparaging peers, and focusing on its own products and technology to achieve high-quality growth by enhancing product strength and brand power.
Addressing market concerns about intensifying competition, Wang believes the new energy industry is still in a growth phase where competition centers on technology and innovation, not short-term pricing. With its in-house R&D capabilities across the entire industry chain, core technological barriers, and first-mover advantage in overseas markets, BYD Company Limited is positioned to navigate industry cycles and achieve sustained growth.
Comments