BYD Electronic (00285) has released its interim results for the six months ended June 30, 2026, reporting a group revenue of RMB 82.234 billion, marking a year-on-year increase of 2.02%. However, profit attributable to owners of the parent company stood at RMB 426 million, representing a significant decline of 75.35% compared to the previous corresponding period. Earnings per share reached RMB 0.19.
In the smart terminal business segment, the deep integration of emerging technologies such as AI and the Internet of Things is accelerating the transformation of the industry landscape. The deployment of generative AI on end devices is driving smart terminals to evolve from single devices toward an ecosystem-oriented approach featuring multi-device collaboration and cross-scenario integration, injecting fresh growth momentum into the industry chain. Nevertheless, terminal market momentum has slowed due to multiple factors, including AI data centers consuming memory production capacity, rising prices of core components, and high interest rates suppressing consumer demand.
During the period, the global smartphone industry faced upward pressure on upstream material costs, prompting handset brands to moderate the pace of new product launches. According to IDC statistics, global smartphone shipments declined by 4.8% year-on-year to 571 million units in the first half of 2026. Premiumization and differentiated innovation have become critical pathways for the smartphone industry to break through current challenges, with leading brands continuously strengthening product competitiveness through form factor evolution and scenario-based development. The technological iteration and design innovation of high-end product lines not only enhance user experience and expand application boundaries but also effectively drive the industry chain toward higher value-added segments, creating new growth opportunities for upstream and downstream partners while raising the bar for system integration capabilities and precision manufacturing processes.
Meanwhile, as cloud-based large model training shifts toward terminal deployment, generative AI is rapidly extending to edge hardware, accelerating the commercial application of AI-enabled phones, smart wearables, and AI robots, which are gradually emerging as new market growth points. During the period, the Group leveraged its full-chain technology platform advantages and efficient delivery systems to further strengthen differentiated competitive barriers, deepen strategic cooperation with global clients, and systematically expand its diversified smart terminal product portfolio.
In the components business segment, the Group maintained its critical position in the high-end flagship smartphone supply chains of both domestic and international clients while expanding into new projects involving AI-enabled phones, AI glasses, and handheld camera devices, achieving volume production and delivery. However, due to weak smartphone market demand and changes in certain product specifications, component revenue declined year-on-year, placing profitability under temporary pressure. The finished device assembly business, benefiting from overseas key clients, recorded year-on-year revenue growth. During the period, the Group generated RMB 67.862 billion in smart terminal business revenue, comprising approximately RMB 11.912 billion from components and RMB 55.95 billion from assembly operations.
In the new energy vehicle business segment, China's NEV industry has maintained its global leadership position through its well-developed supply chain and first-mover technological advantages, while industry competition is shifting from domestic market share battles to comprehensive global competition in technology and value. Currently, the domestic automobile market is experiencing cautious consumer sentiment due to weakened consumer demand, policy transitions in the industry, and the tapering of purchase tax incentives for NEVs. Data from the China Association of Automobile Manufacturers indicates that domestic auto sales declined by 21.1% in the first half of 2026. As domestic automakers actively pursue overseas expansion and localized supply chains, coordinated efforts in both domestic and international markets are driving dual-engine growth, with China's automobile exports rising 65.3% year-on-year, including a doubling of NEV exports. Additionally, sustained price increases in upstream raw materials and chips have created certain headwinds for the industry as a whole.
As a leading NEV manufacturer in China, BYD officially launched its new "Flash Charge" technology in March, successfully overcoming the industry's long-standing challenges of slow charging and poor low-temperature charging performance, while continuing to promote the large-scale application of this technology. Furthermore, driven by the dual forces of intelligent upgrades in China's NEV industry and the nation's continued improvement of its intelligent connected vehicle standards system, the industry is progressing from the "electrification popularization" stage toward a new phase of "intelligence deepening." The Group possesses clear first-mover technological advantages in intelligent cockpit systems, intelligent driving systems, intelligent suspension systems, thermal management, controllers, and sensors, having achieved multi-product integration and volume delivery.
During the period, benefiting from continuously improving intelligence levels, the Group's NEV business recorded year-on-year growth. Intelligent driving, intelligent cockpit, and thermal management products continued to supply key clients, while penetration rates across the full range of intelligent suspension system products increased, with adoption in vehicle models growing significantly compared to the same period last year. Additionally, the Group provided comprehensive supply for flash charge control systems and core structural components, generating new incremental revenue. During the period, the Group's NEV business segment generated approximately RMB 13.619 billion in revenue, accounting for approximately 16.56% of total Group revenue, representing a year-on-year increase of approximately 6.43%.