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BYD reports first quarterly profit increase in five quarters as international sales drive growth.

BYD reported on Friday that its second-quarter net profit reached 8.2 billion yuan ($1.22 billion), marking the first time in over a year that the Chinese automaker has grown quarterly profit. This growth snapped a losing streak that had stretched across four consecutive quarters. While the profit rebound fell short of analyst expectations, which predicted a roughly 48% gain, the recovery was primarily driven by strong international demand. Overseas shipments climbed 71% in the first half of the year, accounting for 44% of total sales and providing relief from the intense price competition and discounts within China's domestic market. The company's overseas business accounted for 53% of total revenue, with gross profit margins expanding as international demand provided a cleaner pricing environment. Despite these gains, domestic passenger car sales in China fell 20% in the first half, highlighting the continued pressure from rivals like Xiaomi and Geely. Investors have responded positively to the news, with BYD's Hong Kong-listed shares gaining 26% since the start of the quarter.

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