"Elimination Round"! BYD's "Revenue Growth but No Profit Growth" Annual Proposed Cash Dividend Total Shrinks Significantly

【Introduction】BYD’s “Increase Revenue but Not Profit” in 2025, Wang Chuanfu States the Industry is Experiencing an “Elimination Match”

After four years, BYD has submitted another annual report of “increasing revenue but not profit”!

On the evening of March 27, BYD disclosed its 2025 annual report, showing that the company’s operating income for 2025 was 803.965 billion yuan, a year-on-year increase of 3.46%; net profit attributable to shareholders was 32.619 billion yuan, a year-on-year decrease of 18.97%.

BYD Chairman Wang Chuanfu stated in the chairman’s speech section of the 2025 annual report that the competition in the new energy vehicle industry has become intense and is undergoing a brutal “elimination match.”

As of the market close on March 27, BYD’s A-share price was reported at 105.30 yuan/share, with a total market value of 918.8 billion yuan.

Once Again “Increasing Revenue but Not Profit” After Four Years

Fourth Quarter Performance Decline Intensifies in 2025

BYD last recorded “increasing revenue but not profit” in 2021.

The annual report shows that BYD’s operating income in 2021 was 216.142 billion yuan, a year-on-year increase of 38.02%; net profit attributable to shareholders was 3.045 billion yuan, a year-on-year decrease of 28.08%.

Source: BYD 2021 Annual Report

In 2025, BYD once again recorded “increasing revenue but not profit,” and the gross profit margins of its two core businesses both declined year-on-year, with the gross profit margin of the automobile, automotive-related products, and other products business (hereinafter referred to as the automobile business) decreasing by 1.82 percentage points to 20.49%.

A comparison shows that BYD’s automobile business gross profit margin in 2025 is approaching the level of 2022.

From 2022 to 2024, BYD’s automobile business gross profit margins were 20.39%, 23.02%, and 22.31%, respectively.

BYD primarily engages in the new energy vehicle business, mobile phone components and assembly business, secondary rechargeable batteries, and photovoltaic business, while leveraging its technological advantages to expand into the urban rail transit business, with the automobile business accounting for over 80% of total revenue in 2025.

In the third and fourth quarters of 2025, BYD’s operating revenue decreased year-on-year by 3.05% and 13.52%, respectively, and net profit attributable to shareholders decreased year-on-year by 32.60% and 38.16%, respectively.

In the second half of 2025, BYD’s monthly sales were overall poor, particularly with domestic monthly sales experiencing multiple year-on-year declines.

For example, in the fourth quarter of 2025, BYD failed to exceed monthly sales of 500,000 units for three consecutive months, with sales in October, November, and December being 441,700 units, 480,200 units, and 420,400 units, respectively.

Since October 2024, BYD’s monthly sales had exceeded 500,000 units for three consecutive months and showed a continuous upward trend.

BYD’s sales primarily come from domestic and overseas markets. In the fourth quarter of 2025, BYD’s overseas monthly sales continued to hit new highs, but domestic monthly sales all declined year-on-year.

In October, November, and December 2025, BYD’s domestic sales decreased year-on-year by 24.11%, 26.81%, and 37.24%, respectively.

Annual Proposed Cash Dividend Amount Significantly Shrinks

Proportion of Net Profit During the Same Period Below 30%

Wang Chuanfu stated that BYD will always place the long-term interests of shareholders and users at the core of its strategy, responding to every trust and commitment with long-term value creation.

The profit distribution plan proposed by BYD for the 2025 fiscal year shows that the company will distribute a cash dividend of 3.58 yuan (including tax) for every 10 shares based on the current total share capital of 9.117 billion shares to all shareholders.

Based on this estimate, BYD’s total cash dividend for the 2025 fiscal year is expected to be 3.264 billion yuan, while the total cash dividends for the 2023 and 2024 fiscal years were 9.012 billion yuan and 12.077 billion yuan, respectively.

At the same time, the total cash dividend amount of BYD accounted for 30% of net profit attributable to shareholders in both 2023 and 2024, but only 10.01% in 2025.

Source: BYD Announcement

Wang Chuanfu indicated that this is based on the actual situation of BYD’s operating cash flow and the needs for future development.

By the end of 2025, BYD’s net cash flow from operating activities was 59.136 billion yuan, a year-on-year decrease of 55.69%.

In a related announcement, BYD stated that the total cash dividend amount for the 2025 fiscal year accounted for less than 30% of net profit attributable to shareholders during the same period in order to seize the historic opportunity of accelerated global penetration of new energy vehicles, which will accelerate the layout of production capacity in various parts of the world and the construction of channel systems, and expedite the popularization of the new generation of “fast charging” energy replenishment facilities.

(Source: China Fund News)