BYD, a leading Chinese electric vehicle manufacturer, announced its second-quarter net profit at 8.2 billion yuan ($1.2 billion), reflecting a 30% increase year-over-year.
However, the company's revenue fell by 3% to 194.6 billion yuan, and for the first half of the year, total revenue decreased by 7.1% to 344.8 billion yuan, with net profit attributable to shareholders dropping 20.5% to 12.3 billion yuan.
The company attributed these results to sluggish domestic demand and increased competition, which have pressured profit margins due to rising costs of commodities, raw materials, and chips.
Despite these challenges, BYD's exports surged by 67.8% to 792,000 vehicles in the first half, and sales from its newer brands, including FANGCHENGBAO, Denza, and Yangwang, increased by 61%, contributing to 12.8% of total passenger vehicle sales.
Analysts at Citi project that BYD's core earnings for the third quarter could reach 13.5 billion yuan and forecast a full-year net profit of 41.2 billion yuan, which is 8% above consensus expectations