--- title: "BYD H1 profit falls 20.5% as overseas growth fails to offset China weakness" type: "News" locale: "en" url: "https://longbridge.com/en/news/297316452.md" description: "BYD reported a 20.5% drop in H1 net profit to 12.33 billion yuan and a 7.13% revenue decline, driven by domestic NEV weakness and foreign-exchange losses. Despite this, overseas expansion boosted gross margin to 18.85%, with exports rising 67.8%. Stronger Q2 sales and record July exports signal improving momentum, supporting management's target of 1.5 million overseas vehicle sales in 2026." datetime: "2026-08-28T11:19:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/297316452.md) - [en](https://longbridge.com/en/news/297316452.md) - [zh-HK](https://longbridge.com/zh-HK/news/297316452.md) generator: "portal-rs" --- # BYD H1 profit falls 20.5% as overseas growth fails to offset China weakness A BYD Seal 07 on display at the Beijing Auto Show in April 2026. Credit: CnEVPost > - Overseas expansion lifted gross margin to 18.85%, but NEV weakness and foreign-exchange losses weighed on profit. > - BYD's first-half revenue fell 7.13% to 344.82 billion yuan. BYD (HKEX: 1211) reported declines in both revenue and net profit in the first half, as weakness in its automotive business and foreign-exchange losses offset strong overseas growth. The company said on Friday that first-half revenue fell 7.13% year-on-year to 344.82 billion yuan ($50.9 billion). Net profit attributable to the company's shareholders dropped 20.54% to 12.33 billion yuan. Join us on Telegram or Google News BYD attributed the revenue decline mainly to weakness in its new energy vehicle (NEV) business. Foreign-exchange losses resulting from currency fluctuations also weighed on profit. Revenue from automobiles and related products and other products fell 8.98% to 275.34 billion yuan, accounting for 79.85% of the group's total revenue. Revenue from electronics and other products rose 0.96% to 69.41 billion yuan, representing 20.13% of total revenue. Weak sales were the main drag on financial performance. BYD sold 1,808,511 NEVs in the first half, down 15.72% year-on-year. The decline narrowed significantly in the second quarter, however. Sales totaled 1,108,048 units in the second quarter, down 3.24% year-on-year, compared with a 30.01% decline in the first quarter. Overseas markets continued to provide growth momentum. BYD exported about 792,000 vehicles in the first half, up 67.8% year-on-year and equivalent to about 44% of its total sales during the period. Second-quarter overseas sales reached 471,091 units, up 82.46% year-on-year and 46.68% from the previous quarter. Growth in the overseas NEV business improved profitability. BYD's first-half gross profit fell 2.81% to 64.99 billion yuan, but its gross margin rose to 18.85% from 18.01%. Combined sales of the group's higher-end brands, including Denza, Fang Cheng Bao and Yangwang, rose 61.0% year-on-year. Their share of the group's passenger-vehicle sales increased to 12.8%. BYD also maintained heavy spending on research and development. First-half R&D investment totaled about 28.9 billion yuan, equivalent to about 2.3 times its net profit for the period, while cumulative R&D spending exceeded 270 billion yuan. Operating cash flow fared better than earnings. First-half cash inflow from operations rose 17.3% year-on-year to 37.34 billion yuan. Overseas expansion also lengthened the inventory turnover cycle. Inventory turnover days increased to 109 from 79 a year earlier, which the company attributed to overseas business growth and longer shipping times. BYD's sales improved further early in the second half. July sales rose 21.76% year-on-year to 419,211 units, marking the third consecutive month of growth. Overseas sales of passenger vehicles and pickup trucks reached a record 179,841 units in July, up 124.3% year-on-year and accounting for about 43% of total sales for the month. BYD reportedly targets higher 2026 overseas sales of 1.5 million units BYD management expressed confidence in achieving 1.5 million vehicle exports in 2026. 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