BYD Shares Fall After First-Half Net Profit Drops 20.5%

Shares of BYD fell nearly 5% in Hong Kong on Monday after the automaker reported a 20.5% decline in net profit attributable to shareholders for the first half of the year, falling to 12.3 billion yuan. The company's first-half revenue decreased 7.1% from the previous year to 344.8 billion yuan.

BYD attributed the financial downturn to fierce industry competition and sluggish domestic demand in China, compounded by rising costs for commodities, raw materials, and chips. The company noted that China's auto industry faced "sluggish domestic demand and robust export growth" during the first half of the year.

Despite the domestic decline, the company expanded its international footprint, with exports rising 67.8% to 792,000 vehicles. Sales for high-end brands, including Yangwang, Denza, and FANGCHENGBAO, also grew 61% year on year. Analysts at Citi project the company's full-year net profit will reach 41.2 billion yuan, a figure that would exceed market consensus by 8%.