BYD Electronic Reports 75% Drop in Net Profit for First Half of 2026

BYD Electronic, a major electronics manufacturer, disclosed its financial results for the first half of fiscal year 2026, reporting a significant 75.35% decline in net profit attributable to the parent company, amounting to 426 million yuan (approximately $58.5 million USD). This profit drop occurred despite a 2.02% increase in total revenue, which reached 82.23 billion yuan (approximately $11.3 billion USD).

The company attributed the substantial decrease in profitability to a "phase-out decline" in its smart terminal components business and foreign exchange losses. Gross profit fell by 27.18% to 4.04 billion yuan, with the gross margin contracting by 1.97 percentage points to 4.91%.

Operating cash flow experienced a steep decline of 91.56%, totaling 844 million yuan. BYD Electronic highlighted its investments in emerging sectors, particularly in AI computing infrastructure. The company noted that its new liquid-cooled cold plate project for a major overseas client has entered the mass production ramp-up phase, positioning it as a potential new growth driver. Revenue from its electric vehicle business grew by 6.43% and now represents 16.56% of total revenue.

Looking ahead, BYD Electronic plans to deepen strategic collaborations with its customers. The company aims to solidify its leading position in the smart terminal sector while accelerating the growth of its electric vehicle and AI computing infrastructure businesses. The focus will be on integrating AI with manufacturing to support high-end chip development and other strategic areas.