BYD's Inventory Writedowns Take the Shine Off a Strong Quarter
Published on 11/06/2026 at 05:11 | Editorial boerse-global.de
BYD disclosed on 30 October that credit and asset impairments totaling RMB 3,654,330 thousand weighed on its pre-tax profit for January to September 2026, reducing it by the same amount. Inventory writedowns accounted for the bulk of the charge at RMB 2,794,209 thousand, with the remainder tied to other assets and credit risks. The mandatory filing put a concrete figure on what the first nine months of the year actually cost the income statement.
That disclosure lands alongside a quarterly report card that looks strong at first glance. For the third quarter of 2026, BYD booked a net profit of 10 billion yuan, up 28% year on year, according to Reuters. Revenue climbed 13.6% to 221.5 billion yuan, snapping a run of four straight quarters of declining sales. Even so, both the bottom line and the top line fell short of the analyst estimates Reuters had compiled.
Nine-Month Profit Still Points Lower
The quarterly gain sits against a weaker longer-run picture. For January to September 2026, BYD reported a 4.24% decline in net profit attributable to shareholders. In other words, the third-quarter rebound arrived while the nine-month result was still contracting.
Should investors sell immediately? Or is it worth buying BYD?
October sales, already published, came in at 490,168 vehicles, a rise of 10.97% on the year. Reuters attributed the gain to a strong overseas business offsetting soft domestic demand and fierce price competition at home. Exports did the heavy lifting: BYD shipped 170,194 vehicles abroad, an increase of 102.8%, more than doubling year on year. Within the passenger-car mix, battery-electric models accounted for 305,743 units and plug-in hybrids for 177,382.
Fang Cheng Bao Ramps Up as Seal 07 Arrives
On the product side, BYD launched the second generation of the Seal 07 in China, offered with both a fully battery-electric powertrain and as a plug-in hybrid, according to media reports. Entry prices came in lower than before while range improved over the outgoing generation.
The Fang Cheng Bao brand, meanwhile, is preparing to lift output in November to shorten delivery waiting times, media reports from 1 November said. The brand has now passed the 600,000 cumulative sales mark.
Brussels Under Pressure From Lawmakers
In Europe, more than a dozen members of the European Parliament have asked the European Commission to carry out a security review of BYD vehicles, according to a Reuters report. The lawmakers want potential security threats assessed and restrictions considered — among them a possible exclusion of BYD from public procurement tenders.
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BYD Stock: New Analysis - 6 November
Fresh BYD information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
