BYD's H1 2026: Profit Fell 20%, but Margins Hit a One-Year High as Exports Jumped 68%
By DianMa Auto · 2026-08-30 · Industry
BYD released its 2026 interim results on August 28. Total operating revenue for the first half came in at RMB 344.82 billion ($51.2 billion), down 7.13% year on year, with net profit attributable to shareholders at RMB 12.33 billion ($1.83 billion), down 20.54%, and earnings per share of RMB 1.35.
The quarterly split tells the recovery story, since first-quarter profit had plunged 55% before the second quarter rebounded roughly 30% year on year.
BYD (002594.SZ / 1211.HK) — H1 2026 earnings (CNY)
| Metric | Value | YoY change |
|---|---|---|
| Revenue | 344.8B | -7.13% |
| Net profit | 12.33B | -20.54% |
| Gross margin | 18.85% | +0.84pp |
| Vehicle Sales | 1.8M | -15.7% |
| year | revenue | profit |
|---|---|---|
| H1 2026 | 344.8 | 12.33 |
| H2 2025 | 432.6 | 17.72 |
| H1 2025 | 371.2 | 16.04 |
| H2 2024 | 475.9 | 27.47 |
| year | volume |
|---|---|
| H1 2026 | 1.8 |
| H2 2025 | 2.45 |
| H1 2025 | 2.14 |
| H2 2024 | 2.66 |
| year | margin |
|---|---|
| H1 2026 | 18.85 |
| H2 2025 | 17.52 |
| H1 2025 | 18.01 |
| H2 2024 | 19.07 |
| label | value |
|---|---|
| Automobiles and related products | 79.85 |
| Electronics and other products | 20.13 |
| Other | 0.02 |
R&D spending: 28.86B (-6.54%) · Cash reserves: 58.74B · Operating cash flow: 37.33B (+17.28%) · Overseas revenue share: 52.57% (+16.11%) · Overseas sales: 792,000 (+67.8%)
| Line item | This period | Prior | Change |
|---|---|---|---|
| Total Assets | 941.27B | 833.73B | 6.51% |
| Gross margin | 18.85% | 18.01% | 0.84% |
| Operating cash flow | 37.33B | 31.83B | +17.28% |
| R&D spending | 28.86B | 30.88B | -6.54% |
| Overseas revenue | 181.27B | 135.36B | +33.92% |
Source: BYD 2026 Semi-Annual Report
The profit structure is the most readable part of this report. Gross margin climbed from 18.01% a year ago to 18.85%, a one-year high, and BYD explicitly credits its higher-margin overseas business as the main driver, with international revenue now exceeding half the total.
R&D spending reached RMB 28.9 billion ($4.29 billion) in the half, more than double the net profit, pushing cumulative R&D past RMB 270 billion. Operating cash flow came in at RMB 37.3 billion against a cash pile of RMB 167.4 billion.
The divergence in sales is starker. Total vehicle sales of 1.8085 million fell about 15.7% year on year, with domestic deliveries down nearly 40%, while overseas volume surged 67.9% to 789,000 units including a record 174,900 in June alone.
Premium brands added 227,900 units, up 61%, and the energy storage business is booked out through 2028 as a second growth engine.
The concerns sit plainly in the same ledger, though. A near-40% domestic decline means BYD is not winning China's price war at home, and one better quarter does not fully absorb a first-quarter profit halving.
With overseas markets now generating more than half of revenue, EU tariffs and shifting national policies will swing the bottom line ever more directly.
BYD's answer is visible in the numbers, offsetting domestic price cuts with export profits and storage orders while betting R&D on the next technology cycle, and this report at least proves the first leg is holding.
