BYD Third-Quarter Profit Rises 28.1% to RMB 10.02 Billion, Nine-Month Profit Slips 4.2%

By The Edge Research Team

BYD’s net profit attributable to shareholders rose 28.1% in the third quarter, the carmaker’s unaudited report shows, while nine-month profit stayed below last year’s level.

Profit for the three months to 30 September reached RMB 10.02 billion ($1.49 billion). For BYD’s shareholders in Shenzhen and Hong Kong, the quarter contrasts with a weaker first half, and nine-month profit still ended 4.2% lower. In The Edge’s reading, the quarter points to a recovery in the core business rather than a one-off, since profit excluding non-recurring items rose 25.3%; the balance sheet tells a different story, with inventories up 60.1% since December.

The report, dated 29 October, says it was published simultaneously in mainland China under Shenzhen Stock Exchange rules and in Hong Kong, where it appeared on HKEXnews. It covers the third quarter and the nine months to 30 September 2026, is unaudited, and carries full financial statements for the nine months only; for the third quarter alone it gives headline figures.

Third-quarter revenue grows 13.6% and margins widen

Operating revenue for the quarter was RMB 221.49 billion ($32.99 billion), up 13.6% on the year. The quarter supplied 39.1% of nine-month revenue and 44.8% of nine-month profit, so it earned more per yuan of sales than the months before it.

Net profit attributable to shareholders equalled 4.5% of revenue in the third quarter, against 3.9% for the nine months as a whole.

Profit after deducting non-recurring items was RMB 8.63 billion, up 25.3%. Basic and diluted earnings per share were RMB 1.10, up 29.4%. The weighted average return on net assets for the quarter was 3.86%.

Non-recurring items added a net RMB 1.39 billion to third-quarter profit, equal to 13.9% of it. Before tax, gains on the fair value and disposal of financial assets supplied RMB 1.13 billion, and government grants, which the company says relate mainly to automobiles and automobile-related products, supplied RMB 825 million.

Third quarter of 2026 (in RMB billions)

Changes are against the third quarter of 2025 as printed in the report; the report gives no prior-year figure for non-recurring items in the quarter.

Exchange losses and impairments weigh on the nine months

Nine-month operating revenue was flat at RMB 566.30 billion, up 0.01%. Net profit attributable to shareholders fell 4.2% to RMB 22.34 billion ($3.33 billion).

Excluding non-recurring items, however, nine-month profit rose 2.5% to RMB 21.00 billion. Earnings per share eased to RMB 2.45 from RMB 2.56.

Because the third quarter rose on both measures, the weakness sits in the first half, when revenue and profit were each lower than in the same months of 2025.

The largest swing came in finance costs. Finance expenses were RMB 7.37 billion, against net finance income of RMB 2.94 billion a year earlier, a turn the company puts mainly down to exchange losses this year after exchange gains last year. Interest expense alone rose 62.3% to RMB 2.81 billion.

Impairments also grew. Asset impairment losses rose 67.6% to RMB 2.71 billion, which the company links to inventory provisions on a larger stock of goods. Credit impairment losses rose to RMB 944 million from RMB 310 million, which the company ties to higher trade receivables.

Investment income dropped 87.9% to RMB 247 million, which the report attributes to larger losses on derecognising financial assets measured at amortised cost and on disposing of trading financial assets. Fair value gains partly offset this, nearly doubling to RMB 1.08 billion.

At the operating level, costs moved in BYD’s favour, with operating costs down 0.8% while revenue was flat. Revenue less operating costs therefore rose to 18.5% of revenue from 17.9%. Sales expenses went the other way, rising 9.1% to RMB 20.20 billion.

Research and development expenses fell 17.1% to RMB 36.28 billion. That is 6.4% of revenue, against 7.7% a year earlier, and the report does not explain the fall. Development spending capitalised on the balance sheet rose to RMB 7.45 billion at 30 September from RMB 5.97 billion at the end of 2025.

Operating profit declined 6.6% to RMB 27.01 billion. Net profit fell 7.0%. Attributable profit fell less because the share belonging to minority interests shrank to RMB 199 million from RMB 898 million.

Nine months to 30 September (in RMB billions)

Rounded from the report’s figures; changes are calculated on the unrounded figures. The 2025 finance expenses figure is net finance income; n.m. means not meaningful.

Operating cash flow rises a third while cash balances fall

Net cash from operating activities rose 33.4% to RMB 54.47 billion in the nine months. The company attributes the rise mainly to lower cash payments for goods and services.

Cash paid for fixed assets, intangible assets and other long-term assets fell 24.0% to RMB 87.38 billion. Operating cash flow still fell short of that spending by RMB 32.91 billion, on The Edge’s calculation, against a gap of RMB 74.09 billion a year earlier.

Financing turned to a net outflow of RMB 23.08 billion, from an inflow of RMB 101.66 billion in the 2025 period, which included the placing of H shares. Debt repayments rose to RMB 109.90 billion from RMB 36.68 billion.

Cash and cash equivalents ended September at RMB 29.78 billion, against RMB 68.40 billion at the start of the year. Monetary funds on the balance sheet fell 58.9% to RMB 30.99 billion.

Nine-month cash flows (in RMB billions)

Capital spending is cash paid for fixed assets, intangible assets and other long-term assets. Negative figures are net outflows; n.m. means not meaningful.

Inventories and advance receipts swell the balance sheet

Total assets rose 7.4% from December to RMB 948.94 billion at 30 September. Equity attributable to shareholders grew 8.0% to RMB 266.05 billion. Liabilities stayed at 70.6% of assets, against 70.7% at the end of 2025.

Inventories rose 60.1% to RMB 221.58 billion, which the company ties to growth in its overseas automobile business and a larger stock. Trade receivables rose 52.6% to RMB 56.47 billion, also on the overseas automobile business. Construction in progress grew 64.0% to RMB 79.18 billion, which the company ties to higher asset investment.

Receipts in advance grew as well. Contract liabilities rose 80.6% to RMB 92.95 billion, which the company ties to higher receipts in advance for its automobile business. Bills payable more than tripled to RMB 78.86 billion, which the company ties to more settlement by bills.

The funding mix shifted. Short-term borrowings fell 51.5% to RMB 18.67 billion after repayments. Bonds payable rose to RMB 14.99 billion from RMB 5.00 billion after new bond issues, and the company also issued super short-term commercial paper.

Balance sheet (in RMB billions)

Balances at 30 September 2026 and 31 December 2025; changes as printed in the report or calculated on its unrounded figures.

Figures are from BYD Company Limited’s 2026 Third Quarterly Report, published on HKEXnews and in Shenzhen on 29 October 2026 and unaudited; percentages, margins and comparisons not attributed to a source are The Edge’s calculations. Dollar equivalents use the yuan’s central parity of 6.7147 per dollar on 29 October 2026, published by the People’s Bank of China.

Sources: BYD Company Limited, Hong Kong Exchanges and Clearing, People’s Bank of China, The Edge.

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