Xi Niu Cai Jing·2025-09-05 07:45Core Viewpoint - BYD reported a decline in net profit for the second quarter of 2025, marking the first quarterly profit drop since 2022, significantly below market expectations [2] Financial Performance - In Q2 2025, BYD's revenue reached 200.92 billion yuan, a year-on-year increase of 14% and a quarter-on-quarter increase of 17.9% [2] - For the first half of 2025, BYD's total revenue was 371.3 billion yuan, up 23.3% year-on-year, while net profit attributable to shareholders was 15.5 billion yuan, a growth of 13.8% [2] - The gross profit margin decreased from 18.78% in the same period last year to 18.01% [2] Cost and Expenses - Operating costs for the first half of 2025 were 304.42 billion yuan, a 24.47% increase year-on-year, primarily due to the growth in the new energy vehicle business [3] - Sales expenses rose to 12.41 billion yuan, up 17.09% year-on-year, driven by increased employee compensation and advertising costs [3] - Management expenses increased by 34.97% year-on-year to 10.39 billion yuan, mainly due to higher employee salaries [3] - Research and development expenses reached 30.88 billion yuan, a 53.05% increase year-on-year, reflecting higher employee compensation and material consumption [3] Profitability Challenges - The profit per vehicle dropped significantly from 8,800 yuan in Q1 to 4,800 yuan in Q2, the lowest since Q1 2022 [4] - The automotive business gross margin fell from 24% in Q1 to 18.7% in Q2, a decrease of 5.3 percentage points [4] - Increased competition in the domestic market and a price reduction strategy implemented in late April contributed to the profit squeeze [4] Market Performance - BYD's overseas sales reached 464,300 units in the first half of 2025, a year-on-year increase of 128.25%, becoming a significant growth driver [4] - The company has entered over 112 countries and regions with its new energy vehicles, achieving the highest sales in several countries [4] Research and Development Investment - BYD's R&D expenditure for Q2 was 15.4 billion yuan, with a total of 30.9 billion yuan for the first half of 2025, reflecting a 53% year-on-year increase [5] - The substantial investment in R&D is expected to yield returns, but the company's ability to recover performance in the second half of the year remains to be seen [5]