BYD (stock code: 002594.SZ) released its 2026 first-half financial report today. The report shows that the company's revenue for the first half of 2026 stood at 344.8 billion yuan, a 7.13% decline from the 371.28 billion yuan recorded in the same period last year. During this period, Byd Company Limited sold 1.81 million vehicles. Government subsidies recognized in the first half totaled 882 million yuan, primarily related to automobiles and automotive-related products. Research and development investment reached 28.9 billion yuan, while domestic tax payments amounted to 22.3 billion yuan.
Net profit for the first half of 2026 was 12.325 billion yuan, down 20.54% from the 15.51 billion yuan reported a year earlier. Non-GAAP net profit came in at 12.373 billion yuan, a 9% decrease from 13.6 billion yuan in the prior-year period. Net cash flow generated from operating activities reached 37.335 billion yuan. As of June 30, 2026, cash reserves stood at 167.4 billion yuan.
Automotive and related revenue totaled 275.3 billion in first half, down 9%
BYD's business spans automotive, electronics, new energy, and rail transit industries. Its battery and related technologies are applicable to consumer electronics, new energy vehicles, and energy storage sectors. Capabilities in electronic information, thermal management, new materials, precision manufacturing, and system integration serve smart terminals and AI computing infrastructure. Additionally, electric drive, electronic control, and system integration capabilities extend to urban rail transit products, forming a diversified and synergistic industrial ecosystem.
In the first half of 2026, revenue from automotive, automotive-related products, and other product businesses amounted to approximately 275.3 billion yuan, an 8.98% decline from the 302.5 billion yuan in the same period last year, accounting for 79.85% of total revenue. Revenue from electronics and other product businesses reached approximately 69.4 billion yuan, a marginal 0.96% increase year-on-year, representing 20.13% of total group revenue.
By region, domestic revenue in China totaled 163.5 billion yuan, down 30.68% from 235.9 billion yuan in the prior-year period, with its share of total revenue dropping to 47.43% from 63.54%. Overseas revenue, however, surged 34% to 181.268 billion yuan, up from 135.4 billion yuan, lifting its share from 36% to 52.57%. Exports reached 792,000 vehicles in the first half, a substantial 67.8% increase year-on-year.
By the end of June 2026, BYD's fleet equipped with assisted driving systems surpassed 3.33 million vehicles, with the "God's Eye" system generating over 210 million kilometers of data daily. In May, the company launched and began mass production of the 4nm intelligent driving chip "Xuanji A3," supporting L3/L4 autonomous driving. Three chips working in tandem deliver combined computing power exceeding 2,100 TOPS. Additionally, BYD unveiled its super intelligent agent "Didi Xia," empowering the DiLink AI intelligent cockpit.
Asset pool business launched with external guarantees
BYD announced today that, aiming to effectively revitalize existing financial assets of the company and its controlled subsidiaries, improve overall capital turnover efficiency, and optimize the financial structure of subsidiaries, it has approved the use of financial assets including certificates of deposit, deposits, commercial bills, letters of credit, wealth management products, and accounts receivable for asset pool operations. This applies from the date of shareholder approval through the conclusion of the 2026 shareholders' meeting. The company will also provide guarantees for its domestic controlled subsidiaries' financing activities such as bank acceptance bills and letters of guarantee at partner banks.
The guarantee arrangements under the asset pool business include various methods such as maximum pledge, general pledge, bill pledge, certificate of deposit pledge, and margin pledge. The total guarantee amount is capped at no more than 50 billion yuan (including equivalent foreign currency). BYD stated that these financing activities will help revitalize existing financial assets, enhance capital turnover and financing efficiency, optimize the financial structure of its subsidiaries, and lower financing costs, all beneficial to business development.
To control guarantee risks, when providing guarantees for non-wholly-owned subsidiaries in bank credit applications or other business needs, the company will generally require other shareholders of such subsidiaries to provide counter-guarantees. BYD will charge guarantee fees based on the guaranteed amounts, with rates determined according to domestic bank market rates.
Following this round of guarantees, the total guarantee amount provided by the company for its controlled subsidiaries and between controlled subsidiaries will not exceed 200 billion yuan (including equivalent foreign currency). This includes guarantees up to 185 billion yuan for subsidiaries with asset-liability ratios at or above 70% (based on unaudited data as of June 30, 2026) and up to 15 billion yuan for subsidiaries with lower ratios, collectively representing 76.68% of the company's unaudited net assets attributable to shareholders as of June 30, 2026. Guarantees provided for associate companies in credit and other business with banks and other institutions are capped at 35.515 billion yuan, representing 13.62% of net assets attributable to shareholders as of that date.
As of June 30, 2026, the actual outstanding guarantee balance for controlled subsidiaries and between controlled subsidiaries was 83.72866 billion yuan, accounting for 32.10% of the latest audited net assets attributable to parent shareholders. The actual guarantee balance for associate companies was zero.
Li Ke returns to top ten shareholders list
As of June 30, 2026, HKSCC Nominees Limited held a 40.38% stake, with Wang Chuanfu directly holding 16.90% and Lu Xiangyang holding 7.87%. Other notable shareholders included Rongjie Investment Holdings with 5.11%, Xia Zuoquan with 2.72%, Hong Kong Securities Clearing Company with 1.86%, Zhang Wei with 0.66%, Wang Nianqiang with 0.60%, National Social Security Fund Portfolio 114 with 0.57%, and Li Ke with 0.36%. Lu Xiangyang is Wang Chuanfu's cousin, with Lu and his spouse Zhang Changhong holding 89.5% and 10.5% stakes in Rongjie Investment Holdings respectively.
For comparison, as of December 31, 2025, HKSCC Nominees Limited held 40.38%, Wang Chuanfu directly held 16.90%, and Lu Xiangyang held 7.87%. Rongjie Investment Holdings held 5.11%, Xia Zuoquan held 2.72%, Hong Kong Securities Clearing Company held 2.38%, Wang Nianqiang held 0.60%, Zhang Wei held 0.55%, ICBC-Huatai-PineBridge CSI 300 ETF held 0.49%, and National Social Security Fund Portfolio 114 held 0.43%. The comparison reveals that in the first half of 2026, executive Li Ke re-entered the top ten shareholders list. As of today's market close, BYD shares traded at 92.32 yuan, giving the company a market capitalization of 841.7 billion yuan.
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