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Investing.com -- Chinese electric vehicle maker BYD reported its first quarterly profit drop in more than three years, as a slowdown in its home market and tighter government scrutiny of industry price wars weighed on results.
Net income fell to 6.36 billion yuan, down nearly 30% from a year earlier, despite a 14% rise in revenue to 200.9 billion yuan for the three months to June 30.
For the first half of 2025, BYD’s net profit rose 13.8% to 15.5 billion yuan, with revenue up 23.3% to 371.3 billion yuan.
The company has sold 2.5 million cars in the first seven months of the year, but that pace leaves it trailing its ambitious target of 5.5 million vehicles this year.
Domestic sales momentum has slowed, with July marking a third straight monthly decline and the first production dip in 17 months.
Overseas expansion has partially offset the weakness, with BYD increasing shipments to Europe and Southeast Asia.
Margins have come under pressure from a government-led call to end steep discounting. BYD’s working capital deficit widened to 122.7 billion yuan by June, while its debt-to-asset ratio edged higher to 71.1%.