On October 31st, the Hang Seng Tech Index in Hong Kong opened low and continued to decline by over 2% in the afternoon. In terms of market performance, tech stocks were generally down, the semiconductor sector experienced a significant drop, and automobile stocks showed weakness. BYD Co., Ltd. saw its stock price fall by over 4% in the afternoon. On the news front, on the evening of the 30th, leading Chinese new energy vehicle company BYD released its third-quarter report for 2025.
The report indicated that in the third quarter of 2025, the company achieved operating income of 194.985 billion yuan, a decrease of 3.05% year-on-year; net profit attributable to the parent company was 7.823 billion yuan, a decrease of 32.60% year-on-year; non-GAAP net profit (net profit excluding non-recurring gains and losses) was 6.891 billion yuan, a decrease of 36.65% year-on-year; basic earnings per share were 0.85 yuan, a decrease of 36.09% year-on-year.
This marks the first year-on-year decline in quarterly performance for BYD since 2022, and it has dragged down the year-on-year net profit attributable to the parent company and non-GAAP net profit for the first three quarters of 2025 by 7.55% and 11.65%, respectively.
Net profit attributable to the parent company refers to the net profit belonging to the parent company’s shareholders after the consolidation of financial statements; while non-GAAP net profit, on this basis, excludes non-recurring gains and losses unrelated to the company’s main business, such as government subsidies and asset disposal gains.
Therefore, non-GAAP net profit better reflects a company’s sustained profitability and operational quality, while net profit attributable to the parent company is a more comprehensive profit indicator overall.
Regarding the significant decline in performance, BYD stated that it was mainly affected by intensified industry competition and cost pressures. Additionally, the company increased research and development investment, and the financial expenses shifted from exchange losses in the same period of the previous year to exchange gains in the current period, among other factors.
While performance is on the decline, BYD’s growth in car sales for the first three quarters of the year has also slowed down. In the first three quarters of this year, BYD’s cumulative car sales reached 3.2601 million vehicles, ranking first domestically. However, compared to the same period in 2024, the growth rate of BYD’s car sales has decreased from 32.13% to 18.64% this year.
Looking specifically at monthly sales, the peak occurred in the second quarter, and the growth rate slowed in the third quarter.
From January to September, BYD’s sales of new energy vehicles were 300,500, 322,800, 377,400, 380,100, 382,500, 382,600, 344,300, 373,600, and 396,300. Sales in July and August increased by 0.56% and 0.15% year-on-year, respectively, while sales in September saw the first year-on-year decline, down by 5.52%.
According to a report by the “China Fund News,” the third quarter has been a significant period for BYD to boost its annual operating income over the past three years.
In the third quarter of 2022, 2023, and 2024, BYD’s operating income increased by 115.59%, 38.49%, and 24.04%, respectively, compared to the same period in the previous year. For the first three quarters of 2022, 2023, and 2024, BYD’s operating income increased by 84.37%, 57.75%, and 18.94%, respectively, compared to the same period in the previous year.
The report mentioned that from March to June this year, BYD launched three consecutive promotional campaigns, with the final promotion being more intense and involving a wider range of models than the previous two times. From January to September, there were a total of five months (January, February, March, April, and September) where sales were lower than production, with sales in September reaching 396,300 vehicles, while production was 405,600 vehicles.