Hua Er Jie Jian Wen·2025-10-30 12:30Core Insights - BYD reported a significant decline in both revenue and net profit for the third quarter, marking a rare instance of negative revenue growth in recent years [2][5] - The company's net profit attributable to shareholders fell by 32.60% year-on-year, indicating a more severe decline compared to the revenue drop [2][5] - Cash flow from operating activities also deteriorated, with a net cash flow of 40.8 billion yuan, down 27.42% year-on-year, suggesting potential issues with accounts receivable and inventory [2][5] Revenue and Profitability - Third-quarter revenue was 195 billion yuan, a decrease of 3.05% year-on-year, while the net profit attributable to shareholders was 7.82 billion yuan [2][5] - For the first three quarters, total revenue reached 566.3 billion yuan, an increase of 12.75%, but net profit decreased by 7.55% to 23.3 billion yuan [2][5] - The company's basic and diluted earnings per share both dropped to 0.85 yuan, down 36.09% year-on-year [2][5] Cost and Expenses - Operating costs for the first three quarters were 465.1 billion yuan, up 14.70%, leading to a gross margin of approximately 17.86%, down about 1 percentage point from the previous year [3] - Research and development expenses surged by 31.30% to 43.7 billion yuan, accounting for 7.72% of revenue, while selling and administrative expenses also increased significantly [3] - Total expenses rose by 22.37% to 77.5 billion yuan, outpacing revenue growth [3] Asset and Liability Management - Total assets reached 901.9 billion yuan, a 15.14% increase from the beginning of the year, with inventory rising sharply by 31.83% to 153 billion yuan [4][6] - The company is aggressively expanding capacity, as indicated by a 144.51% increase in construction in progress to 48.8 billion yuan [4][6] - Long-term borrowings surged by 641.10% to 61.2 billion yuan, reflecting the company's aggressive expansion strategy [6][7] Cash Flow and Financial Health - The net asset return rate was 10.83%, down 6.32 percentage points year-on-year, indicating declining profitability [6] - The cash flow from investment activities showed a significant increase in cash payments for fixed assets, up 64.72% to 114.9 billion yuan [7]