1. **Improved Per-Vehicle Profitability in Q3 Amid Easing Price Wars and Premiumization** BYD reported Q3 2025 revenue of RMB 194.985 billion (-3.05% YoY, -2.95% QoQ), with net profit attributable to shareholders of RMB 7.823 billion (-32.60% YoY, +23.08% QoQ). Excluding BYD Electronic, per-vehicle adjusted net profit rose 11.9% QoQ to RMB 5,400, driven by stabilized industry pricing and premium model growth. The Fang Cheng Bao brand saw sales surge 31.4% QoQ to 55,000 units, with its Titanium 7 model selling 12,000 units in its debut month.

2. **Cost Optimization Enhances Operational Resilience** Q3 gross margin improved 1.35 percentage points QoQ to 17.61%, while R&D/sales/management expense ratios declined. Despite a higher financial expense ratio (0.16%, +0.83 ppts QoQ) due to forex fluctuations, cost-cutting measures bolstered profitability.

3. **Tech Upgrades and Premium Expansion** BYD’s R&D spending grew 31.3% YoY to RMB 43.75 billion in 9M 2025, supporting advancements in intelligent driving (71.2% of Q3 sales featured ADAS) and electrification. The 5th-gen DM hybrid system, launched in October, reduces fuel consumption to 2.6L/100km. The premium Denza N8L (priced at RMB 299,800–329,800) further strengthens its high-end lineup.

4. **Global Expansion Gains Momentum** Overseas passenger vehicle sales jumped 155.9% YoY in Q3, accounting for 20.89% of total sales. BYD showcased Japan-tailored EVs at the 2025 Japan Mobility Show and delivered its 100,000th car in Thailand. With new factories in Brazil, Malaysia, and Hungary, and an eighth roll-on/roll-off vessel added to its fleet, export growth is poised to continue.

**Risks**: Potential shortfalls in NEV sales or overseas expansion; intensifying competition.