BYD Company Limited (01211) Mid-Year Report Decoding: Technical Fishpond + High-End Strategy + Export Triad Resonance, Accelerating Globalization

On August 28, BYD Company Limited (01211) released its semiannual report for 2026. During the reporting period, the company achieved operating revenue of 344.8 billion yuan, a net profit attributable to shareholders of 12.3 billion yuan, and a net operating cash flow of 37.3 billion yuan. The company demonstrated a V-shaped recovery in its second-quarter performance, with quarterly revenue reaching 194.6 billion yuan, a quarter-on-quarter increase of 29.5%; the gross profit margin reached 18.9%, marking a nearly one-year high; and the net profit attributable to shareholders was 8.24 billion yuan, reflecting a quarter-on-quarter growth of 101.8%. In the context of intensified competition in the automotive industry, the business showed a high-quality development trend. The operational resilience of BYD Company Limited stems not from a short-term strategy of sacrificing price for volume, but rather from stable sales, product structure upgrades, and technological empowerment. On the sales front, BYD Company Limited's cumulative sales volume in the first half of the year reached 1.81 million units, with passenger car sales of 1.108 million units in the second quarter, a quarter-on-quarter increase of 58.2%. The sales report released by the company indicates that from July to August, a total of 860,900 new energy vehicles were sold, representing a year-on-year increase of 28.3%; among them, sales in August reached 440,700 units, a year-on-year increase of 24.8%, maintaining steady growth during the industrys off-season and further solidifying its leading position in the industry. Dissecting the core drivers behind BYD Company Limited's improved profitability, a significant portion arises from the structural transformation towards high-end and globalized strategies. In terms of globalization, overseas sales reached 790,000 units in the first half of the year, a year-on-year increase of 68%, with its operations spanning over 120 countries and regions worldwide, and topping the new energy vehicle brand sales chart in key markets such as the UK, Brazil, and Thailand. Sinolink predicts that the annual export sales are expected to exceed 1.8 million units. From the perspective of high-end development, the combined sales of the Fangcheng Leopard, Denza, and Yangwang brands reached 228,000 units in the first half of the year, a year-on-year increase of 61%, accounting for 12.6% of total sales; among them, Fangcheng Leopard alone sold 160,000 units, a year-on-year increase of 163%, with the product matrix continually moving towards high-value segments, driving the elevation of the profit center. The product strength capable of gaining global market recognition is fundamentally driven by high-intensity investment in research and development. In the first half of 2026, BYD Company Limited's R&D investment totaled 28.9 billion yuan, far exceeding its net profit for the same period, retaining the top position in R&D investment among A-share automotive companies; cumulative R&D investment has surpassed 270 billion yuan. Years of accumulated technical fisheries continue to produce innovative results: from the second-generation blade battery, all-scenario fast charging technology, to a robust dual-safety intelligent driving system and self-developed 4nm smart driving chip, Xuanji A3, covering core tracks such as power batteries, energy replenishment ecology, and intelligent driving. On the infrastructure front, as of August 28, the country has officially completed 10,000 fast charging stations, covering 332 cities, showcasing the company's strong capability in supporting infrastructure development. Guolian Minsheng Securities points out that BYD Company Limited is steadily advancing towards high-end development while deepening its globalization, with fast charging technology enhancing product strength and profitability, which is expected to leverage its technological, product, and globalization advantages to unlock mid- to long-term growth potential. Guolian Minsheng forecasts that BYD Company Limited is likely to achieve annual revenue exceeding 910 billion yuan and a net profit attributable to shareholders exceeding 40.2 billion yuan in 2026. From complete vehicle output to ecological output, and from scale expansion to value enhancement, BYD Company Limited has stepped out of the traditional competitive dimension of automotive companies, establishing a comprehensive chain advantage in technology, products, and infrastructure within the global electrification industry, with an increasingly solid certainty of long-term growth.