BYD ELECTRONIC (00285) announced its interim results, with shareholders' profit amounting to 426 million yuan, a year-on-year decrease of 75.35%.

BYD ELECTRONIC (00285) released its interim results for the six months ending June 30, 2026, reporting revenue of RMB 82.234 billion, an increase of 2.02% year-on-year; profit attributable to the parent companys shareholders was RMB 426 million, a decrease of 75.35% year-on-year; and earnings per share were RMB 0.19. In the smart terminal business, the deep integration of emerging technologies such as AI and the Internet of Things is accelerating the reconstruction of the industry landscape. Generative AI deployment at the edge is driving the evolution of smart terminals from single-device formats to an ecosystem characterized by multi-device collaboration and cross-scenario integration, injecting new growth momentum into the supply chain. However, multiple factors such as the demand from AI data centers squeezing memory production capacity, rising prices of key components, and high interest rates suppressing consumer demand have led to a slowdown in momentum in the terminal market. During the period, the global smartphone industry faced upward pressure on upstream material costs, causing a slowdown in the launch rhythm of new models by smartphone brands. According to IDC statistics, global smartphone shipments in the first half of 2026 fell by 4.8% year-on-year to 571 million units. High-end and differentiated innovation has become a key pathway for breaking through in the smartphone industry, with leading brands continuously strengthening product competitiveness through form transformation and in-depth scenario engagement. The technological iteration and form innovation of high-end product lines not only enhance the terminal user experience and application boundaries but also effectively promote the supply chain's ascent toward higher added value, creating new growth opportunities for upstream and downstream partners while also raising standards for system integration capabilities and precision craftsmanship. At the same time, as cloud-based large model training transitions to endpoint deployment, generative AI is rapidly extending to edge hardware, promoting the application implementation phase of AI smartphones, smart wearables, and AISiasun Robot & Automation terminals, gradually becoming new growth points in the market. During the period, the Group leveraged its full-chain technology platform advantages and efficient delivery system to further build differentiated competitive barriers, deepen strategic cooperation with global clients, and steadily broaden its matrix of diversified smart terminal products. In the components business, the Group maintained a key position in the supply chain of high-end flagship smartphones for both domestic and international customers while expanding new projects such as AI smartphones, AI glasses, and handheld camera devices, achieving mass production and delivery. However, due to weak smartphone market demand and changes in specifications for certain products, revenue from components decreased year-on-year, putting pressure on profitability. The complete assembly business benefited from overseas major customers, achieving year-on-year revenue growth. During the period, the Group achieved revenue of RMB 67.862 billion in the smart terminal business, of which component revenue was approximately RMB 11.912 billion, and assembly revenue was approximately RMB 55.95 billion. In the new energy vehicles (NEV) business, the automotive sector of Shanxi Guoxin Energy Corporation, with its comprehensive supply chain and technological first-mover advantage, maintains a leading position globally. The competition is shifting from domestic stock plays to a comprehensive contest of global technology and value. Currently, the domestic automotive industry is under pressure due to weak consumer demand, shifts in industrial policy, and the reduction in purchase tax for new energy vehicles, leading to cautious consumer sentiment. According to data from the China Association of Automobile Manufacturers, domestic vehicle sales in the first half of 2026 fell by 21.1%. With domestic automakers actively promoting overseas layout and localizing supply chains, coordinated efforts in domestic and international markets are being made, driving Chinese automobile exports to increase by 65.3% year-on-year, with exports of new energy vehicles doubling year-on-year. At the same time, fluctuating prices of upstream raw materials and chips continue to rise, impacting the overall industry. As a leading new energy vehicle company in China, BYD Company Limited officially launched its new "fast charging" technology in March, successfully addressing two major pain points the industry has faced for a long time: "slow charging" and "difficult low-temperature charging," while continuing to promote the large-scale application of fast charging technology. Furthermore, under the dual push of intelligent upgrades and the continuous improvement of national standards for intelligent connected vehicles, the automotive sector of Shanxi Guoxin Energy Corporation is transitioning from "electrification" to "intelligent." The Group possesses significant technological advantages in areas such as smart cockpit systems, intelligent driving systems, smart suspension systems, thermal management, controllers, and sensors, achieving multiple product pairings and large-scale deliveries. During the period, benefiting from the continuous improvement of intelligence levels, the Group's new energy vehicle business achieved year-on-year growth. Notably, products such as intelligent driving, smart cockpit, and thermal management continued to supply major customers, with an increased penetration rate of the smart suspension system across all product lines and a significant increase in equipped models compared to the same period last year. At the same time, the Group fully supplied the fast charging control systems and core structural components, bringing new incremental growth. During the period, the revenue of the new energy vehicle business segment was approximately RMB 13.619 billion, accounting for about 16.56% of the Group's overall revenue, with a year-on-year increase of approximately 6.43%.