By Jiahui Huang

BYD's shares were mixed in Hong Kong and Shenzhen after the company reported weaker-than-expected results for 2025, reflecting a challenging period for the automaker.

Its Hong Kong-listed shares fell 0.5% to 105.90 Hong Kong dollars, equivalent to US$13.61, early Monday, while its Shenzhen-listed shares were flat at 105.28 yuan.

Net profit fell 19% to 32.62 billion yuan for 2025, marking its first annual decline in four years, according to earnings released late Friday. Revenue rose 3.5% to 803.96 billion yuan for the period.

Fourth-quarter revenue dropped 14% to 237.7 billion yuan, while net profit for the quarter fell to 9.29 billion yuan, missing Visible Alpha analysts' estimate of 12.29 billion yuan.

The Chinese auto giant, known for its wide range of low-cost EVs, is experiencing a sales slowdown as domestic demand softens. Its market share in China has shrunk amid fierce competition and rapid new-model introductions.

The carmaker has faced pressure from Chinese authorities to halt a price war in the world's largest auto market, which has eroded profitability across the crowded EV sector. Its margin fell to 17.74% from 19.44% a year earlier.

The weaker-than-expected results highlight the difficult balancing act for BYD as it pursues global expansion while grappling with weakening profitability in China.

"For multiple reasons, including the competition strategies of BYD and peers, as well as the policy environment change with anti-involution approach, the company had a tough year in 2025," Nomura analysts said in a note.

BYD's EV market share in China slid to 24.6% in the fourth quarter from 33% a year earlier, due to a muted product cycle and intensified competition, Bernstein analysts wrote in a note.

The automaker hopes new technology will entice customers. In March, BYD released a new EV battery that can be fully charged in nine minutes using its flash-charging stations. The battery can reach 70% capacity from 10% in five minutes.

Some of BYD's midrange and high-end flagship models will be equipped with the new battery. Among them, the newly released Denza Z9 GT can travel up to about 640 miles on a single charge, the longest range among cars using the battery.

Though analysts at Bernstein see BYD facing hurdles in the first quarter, including weaker volumes and higher material costs, subsequent periods could bring further upside.

"Growth momentum should improve from the second quarter on new flash-charging model launches, continued overseas expansion and energy-storage system growth," they said.

Given subdued auto and EV sales in China in January and February, Nomura expects BYD may see more evident business improvement starting in the second quarter.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

March 29, 2026 23:30 ET (03:30 GMT)

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