Byd Company Limited has released its first-quarter report for 2026. The company reported revenue of 150.2 billion yuan, representing a year-on-year decrease of 12% and a quarter-on-quarter decrease of 37%. Net profit attributable to shareholders was 4.08 billion yuan, down 55% year-on-year and 56% quarter-on-quarter. After excluding non-recurring items, the net profit was 4.15 billion yuan, a decrease of 49% year-on-year and 54% quarter-on-quarter.

The first-quarter net profit of 4.08 billion yuan was in line with market expectations. The company's gross profit margin was 18.8%, down 1.3 percentage points year-on-year but up 1.4 percentage points from the previous quarter. The period expense ratio was 16.2%, increasing by 2.5 percentage points year-on-year and 4.0 percentage points quarter-on-quarter. Influenced by foreign exchange losses, financial expenses for the quarter reached 2.1 billion yuan, an increase of 4.0 billion yuan compared to the same period last year.

After adjusting for the financial metrics of Byd's electronics business, the core automotive operations show the following: Revenue was 112.0 billion yuan, down 16% year-on-year and 38% quarter-on-quarter, primarily affected by seasonal sales declines. The average selling price (ASP) was 160,000 yuan, an increase of 27,000 yuan year-on-year and 25,000 yuan from the previous quarter, driven by a higher sales contribution from overseas markets and premium brands. The gross margin was 23.4%, a slight decrease of 0.4 percentage points year-on-year but an improvement of 1.8 percentage points quarter-on-quarter. The gross profit per vehicle was 37,000 yuan, up 6,000 yuan year-on-year and 8,000 yuan from the prior quarter. Net profit attributable to shareholders was 4.07 billion yuan, down 54% year-on-year and 55% quarter-on-quarter. This translates to a net profit per vehicle of 6,000 yuan, a decrease of 3,000 yuan year-on-year and 1,000 yuan quarter-on-quarter, mainly due to increased per-unit expenses resulting from lower sales volume.

Overseas sales demonstrated strong growth, indicating a continued deepening of the company's global strategy. Total vehicle sales for the quarter were 700,000 units, a decrease of 30% year-on-year and 48% quarter-on-quarter, influenced by seasonal industry factors and the phase-out of new energy vehicle subsidies. Rising global oil and gas prices have boosted demand for new energy vehicles overseas, from which Byd Company Limited's exports have significantly benefited. Overseas markets have become the primary growth driver for this year's sales. The company sold 320,000 vehicles overseas in the first quarter, a significant increase of 56% year-on-year, though down 8% from the previous quarter. In terms of localization, the company has established production capacity in Asia, the Americas, Europe, and the Middle East-Africa region. Factories in Hungary and Indonesia are scheduled to commence operations in 2026. The full-year export sales target is set at 1.5 million vehicles, representing a 50% increase year-on-year. Furthermore, the average selling price and profitability in overseas markets are significantly higher than in the domestic market. The scaling up of exports is expected to further optimize the profit structure and drive structural improvements in the company's return on equity.

The company is bolstering its domestic competitiveness through advancements in battery technology and intelligent driving. It continues to deepen its core technological expertise, achieving comprehensive breakthroughs with its second-generation Blade Battery and megawatt-level flash charging technology, thereby leading industry trends. Simultaneously, the company is accelerating the deployment of its flash charging network, targeting the construction of 20,000 flash charging stations by 2026, which is expected to establish a long-term advantage in the energy replenishment ecosystem. Byd Company Limited plans to launch its "Universal Intelligent Driving 2.0" strategy in May 2026, alongside the release of the "Eyes of the God 5.0" intelligent driving system. The core of this strategy is hardware democratization, aiming to make key components like lidar more affordable through economies of scale. The continuous iteration and upgrade of core technologies are strengthening the comprehensive competitiveness of its products and consolidating its leading position in the industry.

Long-term, the company's strategy involves an integrated "Solar-Storage-Charging-Vehicle" ecosystem, positioning it to potentially lead another industry revolution. Against a backdrop of rising geopolitical uncertainty and an accelerating global energy transition, the company is promoting this integrated strategy worldwide. In the solar sector, it has established a full industry chain presence, with operations spanning over 100 countries and regions, providing a solid foundation for clean energy supply. Concurrently, the company is enhancing the energy replenishment experience through its flash charging technology while leveraging its clean energy systems to reduce electricity costs. Plans are underway to introduce second-generation Blade Battery energy storage products to overseas markets such as Southeast Asia, exploring independent power supply models that do not rely on traditional grids, thereby expanding application scenarios, particularly in regions with underdeveloped power infrastructure. As the integrated solar-storage-vehicle solution gains traction globally, industry value is poised for another transformation, with the company's pioneering role potentially driving a second major leap in its valuation.

Potential risks include new energy vehicle sales falling short of expectations, slower-than-anticipated progress in overseas expansion, and challenges in the premium vehicle segment.