BYD's revenue in the first half of the year set a new record, with a net profit increase of 13.79% year-on-year, and a slight decline in gross profit margin | Financial Report Insights

BYD delivered a strong growth report for the first half of 2025, but profitability was under pressure. Operating revenue reached 371.3 billion yuan, a year-on-year increase of 23.30%, setting a new historical record, mainly benefiting from the robust growth of its new energy vehicle business. However, the gross profit margin fell from 18.78% in the same period last year to 18.01%, reflecting intense market competition and pricing pressure.

On Friday, BYD announced its financial report for the first half of the year, with specific details as follows:

• Operating revenue of 371.3 billion yuan, a year-on-year increase of 23.30%, a historical high; net profit attributable to shareholders of the parent company was 15.51 billion yuan, a year-on-year increase of 13.79%
• Gross profit margin of 18.01%, slightly down from 18.78% in the same period last year, mainly affected by domestic "price wars" and other industry impacts
• Net operating cash flow of 31.8 billion yuan, significantly improved; R&D investment of 30.9 billion yuan, a year-on-year increase of 53.05%

Core business progress:

• New energy vehicle sales reached a new high, maintaining its position as the dual champion in both the Chinese and global markets, with new energy vehicles covering over 110 countries and regions across six continents
• Overseas revenue of 135.4 billion yuan, a year-on-year increase of 1.3 times, becoming a new growth engine; completed a USD 5.6 billion placement of H-shares, accelerating overseas capacity layout
• Multi-brand gradient layout continues to improve, with the high-end strategy steadily advancing; the multi-brand matrix continues to optimize, with high-end brands performing well
• Technological innovation: launched the "Super e-platform" and "Universal Intelligent Driving" strategy, introducing the 10C charging rate "Flash Charging Battery"

New Energy Vehicles: Driven by Scale and Technology

BYD delivered a strong growth report for the first half of 2025, with impressive revenue of 371.281 billion yuan, but the gross profit margin fell from 18.78% in the same period last year to 18.01%, reflecting the intense competition in the current new energy vehicle market.

From a business structure perspective, the automotive business has become the absolute leader, accounting for 81.48% of total revenue, with income of 302.506 billion yuan, a year-on-year increase of 32.49%. In contrast, the mobile phone components business generated revenue of 68.744 billion yuan, a year-on-year decrease of 5.54%, with its share dropping to 18.51%.

It is noteworthy that R&D investment reached 30.9 billion yuan, a year-on-year increase of 53.05%, accounting for over 8% of revenue. This figure is considered high in the global automotive industry, demonstrating BYD's firm commitment to technological innovation.

The launch of the "Super e-platform" marks another breakthrough for BYD in electrification technology. The platform features the 10C charging rate "Flash Charging Battery," which can achieve "5 minutes of charging for a 400-kilometer range," effectively addressing the charging anxiety of electric vehicles. Meanwhile, the "Universal Intelligent Driving" strategy aims to bring advanced intelligent driving technology to vehicles priced at 100,000 yuan, promoting the popularization of smart driving.

The multi-brand strategy has shown significant results, from the popular "BYD" brand to the personalized "Fangchengbao," the luxury "Denza," and the million-level "Yangwang" brand, forming a complete product matrix. Notably, the "Yangwang" brand has surpassed 10,000 units in sales, becoming the first domestic million-level automotive brand to break the 10,000 sales mark, proving the strength of Chinese brands in upward breakthroughs

Overseas Markets Become New Growth Pole, Localization Layout Accelerates Implementation

BYD's globalization strategy has entered an accelerated phase, with overseas business becoming an important new growth engine. In the first half of the year, overseas revenue reached 135.4 billion yuan, a year-on-year increase of 130%, not only an astonishing growth rate but, more importantly, overseas pricing has achieved a "high-end" strategy, with profitability significantly better than the domestic market.

The company's products have covered over 110 countries and regions across six continents, and have entered the forefront of new energy vehicle sales in important markets such as the UK, Brazil, and Singapore. More importantly, the overseas market has realized a "high-end" pricing strategy, and the higher profitability has made overseas business a new engine for BYD's sustained high-quality growth. With the "Denza" brand officially entering the European market, BYD's competitiveness in the international high-end market has further strengthened.

At the same time, the localization strategy is steadily advancing: the foundation of the Cambodia factory, the establishment of the European headquarters in Hungary, the establishment of partnerships with local suppliers such as Austrian Steel, and the operation of a self-built fleet all reflect the company's deep layout in overseas markets.

Electronics Business: New Opportunities in the AI Era

Although the traditional consumer electronics market is under pressure, BYD's electronics business has found new growth points. The company focuses on high value-added product areas, with its share of complete machine assembly business for overseas major customers continuously increasing, while the AI data center business has achieved leapfrog growth.

With the explosive demand for AI infrastructure, BYD has built a complete product layout covering AI servers, liquid cooling systems, power management, and high-speed communication. This emerging business not only opens up vast growth space for the company but also reflects the company's forward-looking layout capability in the new technology wave