BYD First Half Revenue 344.8 Billion, Cumulative R&D Investment Exceeds 270 Billion

On the evening of August 28, BYD (002594.SZ) released its financial report for the first half of 2026, with core indicators remaining robust: operating revenue 344.8 billion yuan, net profit attributable to parent company 12.3 billion yuan, R&D investment 28.9 billion yuan, cash reserves 167.4 billion yuan. Notably, net profit in the second quarter grew by 30% year-on-year, gross margin continued to rise, reaching 18.9%, setting a new high in nearly a year, with profitability steadily improving and resilient growth solidifying its industry position.

Currently, competition in the automotive industry is intensifying. Relying on a solid operational foundation and continuously optimized business structure, BYD's development trend continued to improve in the first half of the year, further consolidating its leading industry position.

Dual Drive of Overseas High-End Markets, Growth Structure Continues to Optimize

In the first half of the year, BYD's overseas sales reached 790,000 units, a 68% year-on-year increase, with business covering over 120 countries and regions. It topped the new energy vehicle brand sales chart in core markets such as the UK, Brazil, and Thailand. With the sequential release of localized overseas production capacity and the continuous improvement of the channel system, the overseas segment has become an important engine driving the company's performance growth.

During the same period, the high-end product matrix accelerated volume growth. The three brands Fangchengbao, Denza, and Yangwang achieved a combined sales volume of 228,000 units, up 61% year-on-year, accounting for 12.6% of total sales. Among them, Fangchengbao brand sales reached 160,000 units, up 163% year-on-year; Denza brand also performed brightly, with June sales breaking 20,000 units for the first time, with an average product price reaching 360,000 yuan; Yangwang is the brand with the fastest sales volume breaking 10,000 units in the domestic new energy million-class luxury car segment.

Internationalization and high-endization advance on two tracks, driving continuous optimization of the company's product structure and steadily enhanced profitability. Net profit in the second quarter grew 30% year-on-year, with gross margin reaching 18.9%, setting a new high in nearly a year. Although net profit faced short-term pressure, a closer look reveals it was mainly due to exchange losses from currency fluctuation this year. The company's main business profitability remained stable, and development resilience became increasingly prominent.

Huge R&D Investment Builds Moat, Technical Achievements Land Intensively

Operating quality steadily climbed, with the core driver being continuous technological breakthroughs. In the first half of 2026, the company invested 28.9 billion yuan in R&D, far exceeding net profit during the same period, retaining the title of "King of R&D" in A-shares. Cumulative R&D investment has exceeded 270 billion yuan.

High-intensity R&D investment is accelerating conversion into perceptible technical results. The second-generation Blade Battery and Flash Charging Technology released in March this year created a global record for the fastest mass-produced charging speed, solving the world problem of "slow charging" and "difficulty in charging at low temperatures" in one go, gaining authoritative recognition from the Ministry of Industry and Information Technology. Beyond technological breakthroughs, second-generation Blade Battery production capacity and Flash Charging Station construction are speeding up synchronously. Relying on the "Flash Charge China" strategy, 10,000 Flash Charging Stations have currently been built nationwide, covering 332 cities, and there is a plan to deploy 6,000 Flash Charging Stations overseas within a year to assist global electrification leapfrog development.

Key progress has also been made in the field of intelligence. After providing a safety guarantee for intelligent parking, BYD became the first to commit to a safety guarantee for city navigation in May, becoming the world's only enterprise with a "dual guarantee" and promoting the popularization of assisted driving with practical actions. As of July 31, BYD's assisted driving vehicle holdings exceeded 3.52 million units, and Divine Eye generates data exceeding 220 million kilometers daily. The Xuanji A3 released during the same period is China's first self-developed 4nm process intelligent driving chip. From underlying chips to system software, BYD continues to promote vertical integration and full-stack self-research, leading the intelligent revolution in the global automotive industry.

Development with Responsibility, Actively Fulfilling Social Responsibility

Practicing social responsibility, BYD answers with action. In the first half of 2026, BYD's domestic tax total was 22.3 billion yuan, far exceeding net profit during the same period. In terms of sustainable development, the company firmly anchors the goal of "achieving carbon neutrality across the entire value chain by 2045", with ESG performance firmly staying in the first tier of domestic enterprises. From January to June, BYD's new energy vehicle lifecycle carbon emission reduction reached 23.17 million tons, equivalent to planting 386 million trees, contributing practical power to low-carbon transformation.

Conclusion

In the first half of 2026, the global automotive industry accelerated restructuring, with industry profitability generally under pressure. BYD broke out against the trend, with second-quarter performance reaching a new level. With technical results continuing to emerge in the second half of the year, the proportion of high-end models steadily increasing, and the global layout entering the harvest period, the company's profitability and development potential will be further highlighted. Full-year performance is expected to improve quarter by quarter and continue to climb. From technological breakthroughs to global layout, from high-end breakthroughs to responsibility, the company is reshaping growth logic with all-round competitiveness and leading global industrial transformation.

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