BYD Electronic (International) Company (285) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 rose 2.02% year-over-year to RMB82,234 million, but profit attributable to shareholders dropped 75.35% to RMB426 million, mainly due to product mix changes and foreign exchange losses.

• Gross profit fell 27.18% to RMB4,037 million, with gross margin declining from 6.88% to 4.91% year-over-year.

• The Group advanced its AI computing infrastructure business, with liquid cooling plate projects for major overseas clients entering mass production.

• New energy vehicle business achieved steady growth, driven by increased penetration of intelligent suspension products.

• Profitability was under pressure due to a temporary decline in the smart terminal components business and foreign exchange losses.

Financial highlights

• Revenue: RMB82,234 million (+2.02% YoY); Gross profit: RMB4,037 million (−27.18% YoY); Net profit: RMB426 million (−75.35% YoY).

• Earnings per share: RMB0.19 (−75.35% YoY).

• Operating cash inflow: RMB844 million (vs. RMB10,002 million in 2025H1).

• Interest-bearing borrowings: RMB7,080 million as of 30 June 2026; gearing ratio: 9.78%.

• Gross margin: 4.91% (vs. 6.88% in 2025H1).

Outlook and guidance

• The Group expects continued macroeconomic headwinds but sees robust long-term growth fundamentals in China, with national policies supporting intelligent transformation and AI integration in manufacturing.

• Smart terminal business faces short-term demand suppression due to high component costs but is expected to structurally recover as new AI-driven product cycles roll out.

• New energy vehicle sales in China forecasted to grow 15.2% in 2026, with rising demand for intelligent system solutions.

• AI computing infrastructure business expected to become a key growth engine, with global spending projected to reach US$497 billion in 2026.