According to the Zhitong Finance App, BYD Electronics (00285) announced interim results for the six months ended June 30, 2026. The group achieved a turnover of RMB 82.234 billion (same unit), an increase of 2.02%; profit attributable to owners of the parent company was 426 million yuan, a year-on-year decrease of 75.35%; and profit per share was 0.19 yuan.
In terms of smart terminal business, the deep integration of emerging technologies such as AI and the Internet of Things is accelerating the restructuring of the industrial landscape. Generative AI end-side deployment promotes the evolution of smart terminals from a single device to the ecological direction of multi-device collaboration and cross-scenario integration, injecting new growth momentum into the industrial chain. However, due to multiple factors such as demand for AI data centers crowding out memory production capacity, rising prices of core components, and high interest rates suppressing consumer demand, the momentum of the terminal market is slowing down.
During this period, the global smartphone industry faced upward pressure on upstream material costs, and the pace of releasing new mobile phone brands slowed down. According to IDC statistics, global smartphone shipments fell 4.8% year-on-year to 571 million units in the first half of 2026. High-end and differentiated innovation are becoming a key path for the smartphone industry to break through, and leading brands continue to strengthen product competitiveness through morphological changes and in-depth scenario cultivation. The technological iteration and form innovation of high-end product series not only enhances the end user experience and application boundaries, but also effectively promotes the industrial chain to leap towards high added value, creates new growth opportunities for upstream and downstream partners, and also puts forward higher standards for system integration capabilities and precision processes. At the same time, as cloud-based large-scale model training shifts to the implementation of terminals, generative AI is accelerating its extension to end-side hardware, driving terminals such as AI phones, smart wearables, and AI robots into the application implementation stage, and gradually becoming a new growth point in the market.
During the period, the Group relied on full-chain technology platform advantages and efficient delivery systems to further build differentiated competitive barriers, deepen strategic cooperation with global customers, and broaden the diversified smart terminal product matrix in an orderly manner. In terms of parts business, the Group maintains a key position in the high-end flagship mobile phone supply chain for domestic and foreign customers, while expanding new projects such as AI phones, AI glasses, and handheld camera equipment, and achieving mass production and delivery. However, due to weak demand in the smartphone market and changes in some product specifications, parts revenue declined year-on-year, and profitability was under phased pressure. The machine assembly business benefited from major overseas customers and achieved year-on-year revenue growth. During the period, the Group achieved revenue of 67.862 billion yuan in the smart terminal business, including component revenue of about 11.912 billion yuan and assembly revenue of about 55.95 billion yuan.
In terms of NEV business, China's NEV industry is leading the world by improving supply chains and first-mover technology, and industrial competition is shifting from a domestic stock game to a comprehensive competition of global technology and value. Currently, the domestic automobile industry is affected by factors such as consumer demand pressure, industrial policy changes, and declining NEV purchase taxes, and terminal consumer sentiment tends to be cautious. According to data from the China Association of Automobile Manufacturers, domestic automobile sales fell 21.1% in the first half of 2026. As domestic car companies actively promote overseas layout and supply chain localization, domestic and foreign markets work collaboratively, and two-wheel drive, China's automobile exports increased 65.3% year on year, with NEV exports doubling year on year.
At the same time, prices of upstream raw materials and chips continue to fluctuate and rise, which has had a certain impact on the overall industry. As a leading domestic NEV company, BYD officially launched a new “flash charging” technology in March, successfully overcoming the two major pain points of “slow charging” and “difficult charging at low temperatures” that the industry has faced for a long time, and continues to promote large-scale application of flash charging technology. Furthermore, under the dual impetus of intelligent upgrading and the country's continuous improvement of the intelligent connected vehicle standard system, China's NEV industry continues to move from “popularization of electrification” to a new stage of “deepening intelligence.” The Group has obvious first-mover technology advantages in the fields of intelligent cockpit systems, intelligent driving systems, intelligent suspension systems, thermal management, controllers and sensors, and has achieved multi-product support and large-scale delivery.
During the period, benefiting from the continuous improvement in the level of intelligence, the Group's NEV business achieved year-on-year growth. Among them, products such as intelligent driving, smart cockpit, and thermal management continue to support major customers. The penetration rate of all smart suspension system products has increased, and the number of models equipped with it has increased significantly compared to the same period last year; at the same time, the Group fully supports the supply of flash charging control systems and core structural components, bringing new increases. During the period, the revenue of the Group's NEV business segment was approximately RMB 13.619 billion, accounting for about 16.56% of the Group's total revenue, and revenue increased by about 6.43% year-on-year.