In 2025, BYD reported revenue of RMB 803.965 billion, an increase of 3.46% year-over-year (YoY). The company sold 4.6 million vehicles globally, up 7.73% YoY, maintaining its position as the world’s top seller of new energy vehicles (NEVs). However, both revenue and sales growth slowed significantly compared to the previous three years. From 2022 to 2024, BYD’s revenue grew by 96.20%, 42.04%, and 29.02% YoY respectively, while vehicle sales surged by 152.46%, 61.86%, and 41.26% over the same period. Net profit attributable to shareholders in 2025 amounted to RMB 32.62 billion, down 18.97% YoY—the first decline in the past five years. Gross margin fell to 17.74%, a decrease of approximately 1.7 percentage points YoY. Specifically, the automotive segment’s gross margin stood at 20.49%, down 1.82 percentage points YoY. Operating costs rose to RMB 661.305 billion, up 5.63% YoY—outpacing revenue growth. Sales expenses increased to RMB 26.185 billion (+8.72% YoY), primarily due to higher advertising and exhibition expenditures; administrative expenses reached approximately RMB 20.2 billion (+8.34% YoY); and R&D expenses totaled RMB 57.978 billion (+8.99% YoY). Total R&D investment reached RMB 63.441 billion, accounting for 7.89% of revenue. Intensifying industry-wide price competition and “excessive marketing” have pressured profitability. Although BYD did not implement across-the-board price cuts, its newly launched core models were priced relatively low, effectively engaging in a de facto price war. Meanwhile, China’s total NEV sales reached 16.49 million units in 2025, up 28.2% YoY—significantly outpacing BYD’s own sales growth rate. To optimize its organizational structure, BYD cut 100,000 jobs in 2025, reducing its workforce from 970,000 to 870,000 employees. Simultaneously, the company accelerated its overseas expansion: full-year overseas passenger car and pickup truck sales reached 1.0496 million units, surging 145% YoY; overseas revenue totaled RMB 310.741 billion, up 40.05% YoY, representing 38.65% of total revenue—a notable increase from prior levels. On the financial restructuring front, as of end-2025, BYD’s bills payable ballooned from RMB 2.221 billion at the end of Q3 to RMB 22.464 billion. Combined accounts payable, other payables, and bills payable totaled approximately RMB 328.7 billion, accounting for 52.57% of total liabilities—down nearly 14 percentage points from the prior year. The company’s debt-to-asset ratio declined from 74.64% to 70.74%. This adjustment occurred against the backdrop of regulatory efforts urging automakers to shorten supplier payment terms; the industry had committed in June 2025 to limiting payment cycles to no more than 60 days. At an investor meeting held in Hong Kong in March 2026, BYD Chairman Wang Chuanfu stated that the company would refrain from engaging in price wars and instead focus on innovation, products, and ecosystem development as its core competitive advantages. He announced plans for overseas and domestic markets to each account for half of total sales in the future. Wang also noted that BYD enjoys strong recognition overseas but faces considerable public opinion challenges domestically. The company plans to launch its second-generation Blade Battery in 2026 and roll out its flash-charging technology globally, aiming to attract internal combustion engine (ICE) vehicle users who have not yet transitioned to NEVs.