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

【Introduction】BYD’s “Revenue Growth Without Profit Increase” in 2025, Wang Chuanfu States the Industry is Experiencing an “Elimination Match”

After four years, BYD has once again delivered an annual report of “revenue growth without profit increase”!

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

BYD Chairman Wang Chuanfu stated in the chairman’s address 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.

“Revenue Growth Without Profit Increase” Again After Four Years

Fourth Quarter Performance Decline Intensifies in 2025

BYD’s last instance of “revenue growth without profit increase” was in 2021.

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

Source: BYD 2021 Annual Report

In 2025, BYD again experienced “revenue growth without profit increase,” and both core business segments saw a year-on-year decline in gross profit margin, with the gross profit margin for automotive and related products (hereinafter referred to as automotive business) declining by 1.82 percentage points to 20.49%.

Comparatively, BYD’s automotive business gross profit margin in 2025 is close to the level of 2022.

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

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

In the third and fourth quarters of 2025, BYD’s operating revenue declined year-on-year by 3.05% and 13.52%, respectively, while the net profit attributable to the parent company declined 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 multiple months of year-on-year declines in domestic monthly sales.

For example, in the fourth quarter of 2025, BYD failed to break the monthly sales threshold 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 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 record highs, but domestic monthly sales saw year-on-year declines.

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

Proposed Annual Cash Dividend Amount Significantly Reduced

Proportion of Net Profit During the Same Period Below 30%

Wang Chuanfu stated that BYD will always prioritize 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.

BYD’s proposed profit distribution plan for 2025 shows that the company will issue a cash dividend of 3.58 yuan (inclusive of 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 2025 is 3.264 billion yuan, while the total cash dividends for 2023 and 2024 were 9.012 billion yuan and 12.077 billion yuan, respectively.

At the same time, the total cash dividend amount for BYD as a proportion of the net profit attributable to the parent company was 30% for both 2023 and 2024, but only 10.01% for 2025.

Source: BYD Announcement

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

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

In related announcements, BYD stated that the total cash dividend for 2025 as a proportion of the net profit attributable to the parent company being below 30% is to seize the historic opportunity of the global acceleration in the penetration of new energy vehicles, speed up the layout of production capacity in multiple locations worldwide, and construct a channel system, as well as accelerate the promotion of the next generation of “fast charging” energy replenishment facilities.

(Source: China Fund News)