Recently, BYD released its financial report for the first half of 2025. Against the backdrop of general pressure on the global automotive market and declining performance of many multinational giants, BYD still bucked the trend and delivered a report card with record-breaking revenue and profits.
In the first half of this year, BYD not only maintained its high growth momentum with revenue of 371.3 billion yuan and net profit attributable to parent company shareholders of 15.5 billion yuan, maintaining its global leadership among new energy vehicle companies, but also achieved explosive growth in overseas markets, with simultaneous advancements in high-end brands and technology layouts, demonstrating the strong development resilience and strategic focus of Chinese auto companies.
Behind the counter-trend growth in performance, overseas markets have become the key engine
Despite facing a volatile global trade environment and macroeconomic pressures, BYD achieved operating revenue of 371.3 billion yuan in the first half of 2025, a year-on-year increase of 23%. Net profit attributable to parent company shareholders reached 15.5 billion yuan, a year-on-year increase of 14%, with several operating indicators reaching record highs. Particularly noteworthy was the steady expansion of its global sales, with cumulative sales of 2.86 million vehicles in the first eight months, a year-on-year increase of 23%.
In contrast, traditional auto giants saw net profits drop by over 30% in the first half of the year, with revenues also declining to varying degrees. BYD's performance, outperforming its overseas competitors and accelerating growth amidst a sluggish global market, demonstrates not only its strategic execution capabilities but also the overall competitiveness of China's auto industry.
Sufficient cash flow, low debt ratio, and leading financial structure health
Strong sales and good profitability have provided BYD with ample cash flow. By the end of June 2025, the company's cash reserves had climbed to 156.1 billion yuan, a record high. Even more noteworthy is BYD's debt structure: interest-bearing debt is only 41.6 billion yuan, accounting for 6.9% of total liabilities, among the lowest in the industry. Its cash reserves have reached 3.75 times its interest-bearing debt, ensuring its short-term solvency.
This advantage is even more pronounced when compared to international automakers. Some companies have interest-bearing debt exceeding one trillion yuan, accounting for over 60% of their total liabilities. BYD's debt-to-equity ratio of only 6.9% leaves it with significant financial flexibility and risk mitigation potential.
In addition, BYD completed a HK$43.5 billion equity refinancing in March of this year, hailed as one of the largest placements in the global automotive industry in a decade. Numerous analysts have noted that this move will further optimize the company's capital structure, reduce its debt ratio, and provide ample funding for future technological investment and global expansion.
R&D investment exceeds profits, and technological achievements usher in a concentrated outbreak
The underlying logic behind BYD's continued high growth is its almost obsessive investment in research and development.
In the first half of 2025, BYD's R&D expenditure reached 30.9 billion yuan, a significant year-on-year increase of 53%, even doubling its net profit during the same period. From 2011 to 2024, BYD's R&D investment exceeded its net profit for thirteen years, totaling over 210 billion yuan. This strategic focus on prioritizing R&D over profit is rare among A-share listed companies.
Today, BYD's substantial investment in R&D is rapidly translating into tangible technological leadership. In the first half of the year, BYD launched a series of disruptive technologies, including the Eye of God assisted driving system, the Super e platform megawatt flash charging, and the Lingyuan vehicle-mounted drone system, further solidifying its technological leadership. Notably, in July, BYD became the first company in the world to achieve Level 4-level smart parking and was the first to pledge comprehensive safety assurance for the use of related features, demonstrating strong confidence in its technology and a strong sense of responsibility.
Driven by the "Intelligent Driving for All" strategy, the installation volume of the Eye of God system has rapidly increased, and the sales of models equipped with this system have exceeded 1.2 million, making BYD the automaker with the highest sales of intelligent driving models in China, and its system coverage rate also ranks first in the domestic market.
In addition, according to the latest patent rankings released by China Automotive Information and Communications Technology, BYD ranks first in the number of Chinese patent authorizations in the three major technology fields of new energy, hybrid power and pure electric power, building a deep technological barrier.
Practicing social responsibility, green strategies and contributions attract attention
While advancing both performance and technology, BYD is also actively practicing its corporate social responsibility. In the first half of 2025, BYD's total domestic tax payments reached 27.1 billion yuan, exceeding its net profit for the same period, demonstrating its significant contribution to the regional economy and industrial ecosystem.
In terms of sustainable development, BYD elevated ESG to a group-wide strategic level in 2024, explicitly stating a 50% reduction in the group's operational carbon emissions intensity by 2030 (compared to 2023) and committing to achieving carbon neutrality across its entire value chain by 2045. In the first half of 2025, BYD's sold vehicles reduced carbon emissions by 22.97 million tons during the driving phase, equivalent to planting 382 million trees. This green impact permeates the entire product lifecycle. BYD's commitment to social responsibility and green strategies reflects its commitment as a new energy company.
Final Thoughts
BYD's performance in the first half of 2025 is more than just a report card; it's a key signal of China's manufacturing industry's progress toward high-end development and globalization. By leveraging sustained high R&D investment to drive technological innovation, leveraging a healthy financial structure to mitigate external risks, and using overseas markets as a secondary growth channel, BYD is gradually evolving from "China's BYD" to "the world's BYD." In its example, we see not only the growth of a single company, but also the path to the rise and future possibilities of an entire industry. Chinese auto brands are poised to ride this wave.