Shares of Chinese electric vehicle giant BYD fell nearly 5% in Hong Kong after the company reported weaker first-half financial results amid intense competition in China’s auto market.
BYD reported first-half revenue of 344.8 billion yuan, down 7.1% from a year earlier, while net profit attributable to shareholders fell 20.5% to 12.3 billion yuan. The company said sluggish domestic demand, fierce competition and rising costs for commodities, raw materials and chips pressured profit margins.
Despite the challenges in China, BYD’s international business continued to expand. Vehicle exports increased 67.8% year on year to 792,000 units during the first half of the year.
The company’s premium brands, including FANGCHENGBAO, Denza and Yangwang, also recorded strong growth, with combined sales rising 61% year on year.
Analysts at Citi expect BYD’s earnings to improve in the second half of the year, with full-year net profit potentially reaching 41.2 billion yuan.
