Chinese automaker BYD reported a 55.4% year-on-year drop in first-quarter net profit attributable to shareholders, as revenue declined and finance costs swung higher.
In a regulatory filing, the Shenzhen-based company said operating revenue for the January to March period declined 11.82% to 150.22bn yuan ($21.97bn).
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Operating profit more than halved to 4.70bn yuan from 11.02bn yuan.
Net profit attributable to shareholders fell to 4.08bn yuan from 9.15bn yuan.
The company’s cash generation also weakened.
Net cash flow from operating activities fell 67.48% to 2.79bn yuan.
Basic and diluted earnings per share both decreased to 0.44 yuan from 1.03 yuan.
The earnings deterioration came as BYD’s finance expenses rose sharply to 2.10bn yuan from a negative 1.91bn yuan in the prior-year period, indicating a swing from net finance income to net finance cost.
Development spending increased 38.75% to 8.29bn yuan, driven by higher internal research and development expenditure.
Short-term borrowings climbed 72.27% to 66.30bn yuan, suggesting heavier use of short-term funding.
Bills payable also rose sharply, more than doubling to 48.60bn yuan due to higher bill settlements.
Meanwhile, non-current liabilities due within one year dropped 37.41% to 3.95bn yuan, mainly because of repayments of long-term borrowings.
The first quarter results pointed to weaker profitability, softer operating cash flow, rising R&D investment and a funding mix tilted more towards short-term financing.
In 2025, BYD posted a 3.5% increase in global sales revenue to 804bn yuan, but annual profit fell for the first time since 2021 amid intense competition and weaker demand in its domestic market in the second half of the year.
Net earnings for 2025 declined 19% to 32.6bn yuan, marking the company’s first annual profit drop since 2021.
