BYD HK SDR 10to1 shares plummeted 5.14% in pre-market trading on Monday following the release of the company's 2025 annual report which showed declining profitability and results that fell short of analyst expectations.
The electric vehicle maker reported a 18.97% decline in net profit to 32.6 billion yuan despite a modest revenue increase of 3.46%. The company also slashed its dividend to just one-tenth of the previous year's payout. BYD's gross margin continued to deteriorate, falling to 17.74% in 2025 from 20.21% in 2023, reflecting pricing pressure in the competitive EV market.
Market reaction was negative as the actual results missed analyst forecasts from multiple securities firms. The disappointing financial performance, combined with increased financial pressure evidenced by over 100 billion yuan in net financing cash inflow, prompted the sharp sell-off in BYD shares during early trading.