--- title: "BYD Q1 Revenue of RMB 150.2 Billion Slightly Beats Expectations; Net Profit Drops 55% YoY Due to Foreign Exchange Losses | Financial Report Insights" type: "News" locale: "en" url: "https://longbridge.com/en/news/284367392.md" description: "In the first quarter of 2026, BYD's revenue reached RMB 150.2 billion, slightly exceeding expectations, but net profit halved year-on-year to RMB 4.085 billion. Foreign exchange gains and losses shifted from a gain of approximately RMB 1.9 billion in the same period last year to a loss, dragging down profits by about RMB 4 billion. Overseas sales surged by over 50%, and new car \"Tang\" received over 30,000 pre-orders within 24 hours, sending positive signals. Operating cash flow decreased by 67%, while inventory and short-term borrowings both rose, and capital expenditure showed some restraint" datetime: "2026-04-28T12:06:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284367392.md) - [en](https://longbridge.com/en/news/284367392.md) - [zh-HK](https://longbridge.com/zh-HK/news/284367392.md) --- # BYD Q1 Revenue of RMB 150.2 Billion Slightly Beats Expectations; Net Profit Drops 55% YoY Due to Foreign Exchange Losses | Financial Report Insights BYD delivered a significantly divergent first-quarter report: net profit halved, and revenue declined year-on-year but slightly exceeded expectations. Meanwhile, positive signals such as a surge in overseas sales by over 50% and more than 30,000 pre-orders for the new "Tang" model within 24 hours were also evident. According to the announcement by BYD COMPANY on the Hong Kong Stock Exchange, the company achieved operating revenue of RMB 150.225 billion in the first quarter of 2026, a year-on-year decrease of 11.82%, higher than Bloomberg's consensus expectation of RMB 140.4 billion. The net profit attributable to shareholders of the listed company was RMB 4.085 billion, a significant year-on-year drop of 55.38%, basically consistent with the average estimate of RMB 4.1 billion from five analysts summarized by Bloomberg. Basic earnings per share dropped from RMB 1.04 in the same period last year to RMB 0.45; the weighted average return on equity narrowed from 4.37% to 1.65%. **The decline in profit was mainly dragged down by non-operating factors.** Financial expenses surged by 210% year-on-year to approximately RMB 2.1 billion, as foreign exchange gains and losses shifted from a gain of about RMB 1.9 billion in the same period last year to a loss. In addition, R&D expenditure was RMB 11.34 billion, a year-on-year decrease of about 20%, slightly lower than the market estimate of RMB 11.93 billion; selling expenses were RMB 5.83 billion, compared to RMB 6.18 billion in the same period last year. Eugene Shao, an analyst at Macquarie Capital, stated in a report before the earnings release that pressure on profit margins in the first quarter seemed underestimated, but he expected it to ease in the coming quarters. ## Surge in Overseas Sales and New Car Pre-orders Send Positive Signals **Some positive signals are also emerging.** Stimulated by soaring oil prices boosting demand for electric vehicles, **overseas sales surged by over 50% in the first quarter**, with exports accounting for about 45% of BYD's first-quarter deliveries, raising hopes of achieving this year's target of selling 1.5 million vehicles overseas. Furthermore, after BYD's new "Tang" SUV debuted at the Beijing Auto Show, **it received over 30,000 pre-orders within 24 hours**, boosting the company's stock price on Monday. The model is equipped with BYD's latest Blade Battery, offering a single-charge range of nearly 1,000 kilometers, with an expected starting price of RMB 250,000. Joanna Chen, an analyst at Bloomberg Industry Research, pointed out before the earnings release that a recovery trend seems to be forming in the second quarter. New models equipped with the second-generation Blade Battery are bringing more foot traffic to showrooms, while the global energy shock caused by the Middle East conflict has also brought strong orders for the company's overseas electric vehicle and energy storage businesses. ## Reversal of Foreign Exchange Gains/Losses, Financial Expenses Surge by 210% **The core reason for the sharp decline in profit stems from the violent fluctuation in foreign exchange gains and losses.** In the same period last year, BYD recorded a foreign exchange gain of about RMB 1.9 billion under financial expenses; whereas in this quarter, it turned into a foreign exchange loss, causing financial expenses to skyrocket by 210.04% year-on-year to about RMB 2.1 billion. This item alone dragged down profits by approximately RMB 4 billion. At the same time, the fair value of derivative financial instruments shifted from a profit of RMB 246 million in the same period last year to a loss of RMB 101 million, with gains/losses from changes in fair value decreasing by 141% year-on-year; investment income also shrunk significantly from nearly RMB 700 million to less than RMB 100 million, a year-on-year decrease of 87.68%. The superposition of these non-operating factors was the main driver behind the halving of net profit. ## R&D Expenses Decrease, Capitalization Rate Increases On the expense side, the change in the accounting treatment of R&D investment is worth noting. R&D expenses for this quarter were RMB 11.344 billion, compared to RMB 14.223 billion in the same period last year, a year-on-year decrease of about 20.2%. However, the balance of development expenditures on the balance sheet increased from RMB 5.971 billion at the beginning of the year to RMB 8.285 billion, an increase of 38.75%. This indicates that part of the R&D investment has shifted from expensing to capitalization, thereby reducing current-period expenses and providing some support to profits. This change itself does not represent a decline in R&D intensity, but rather reflects adjustments in the pace of the company's R&D project progression and accounting estimates. ## Operating Cash Flow Decreases, Financing Needs Rise The net cash flow from operating activities was RMB 2.79 billion, a significant year-on-year decrease of 67.48%, mainly due to a year-on-year decrease of about RMB 35.4 billion in cash received from sales of goods and provision of services. This change may be related to the extension of downstream payment collection cycles, intensified industry price competition, and changes in sales structure. Regarding the balance sheet, the inventory balance increased from RMB 138.421 billion at the beginning of the year to RMB 160.414 billion, an increase of about 15.9%, creating certain capital occupation pressure against the backdrop of declining revenue. Short-term borrowings increased from RMB 38.485 billion to RMB 66.296 billion, an increase of 72.27%, indicating a significant rise in the company's financing needs. From the perspective of investment activities, capital expenditure showed some restraint. Cash paid for purchasing and constructing fixed assets, intangible assets, and other long-term assets was RMB 22.063 billion, a year-on-year decrease of about 40%, which to some extent explains the phenomenon where the balance of construction in progress increased from RMB 48.294 billion to RMB 59.318 billion, but the growth rate slowed down. ### Related Stocks - [01211.HK](https://longbridge.com/en/quote/01211.HK.md) - [BYDDF.US](https://longbridge.com/en/quote/BYDDF.US.md) - [002594.CN](https://longbridge.com/en/quote/002594.CN.md) - [BYDDY.US](https://longbridge.com/en/quote/BYDDY.US.md) - [MQG.AU](https://longbridge.com/en/quote/MQG.AU.md) - [HYDD.SG](https://longbridge.com/en/quote/HYDD.SG.md) - [81211.HK](https://longbridge.com/en/quote/81211.HK.md) ## Related News & Research - [BYD doubles down on fast charging to target China's EV holdouts](https://longbridge.com/en/news/284068565.md) - [BYD Sets June Cut-Off Dates for AGM Voting and 2025 Final Dividend](https://longbridge.com/en/news/283633472.md) - [BYD Strengthens Corporate Governance With New Nomination Committee Rules](https://longbridge.com/en/news/284375386.md) - [BYD Denza launches second-gen D9 with ultra-fast charging to defend MPV market share](https://longbridge.com/en/news/284300335.md) - [Is It Time To Reassess BYD (SEHK:1211) After Recent Share Price Weakness?](https://longbridge.com/en/news/283942629.md)