Paying the Price for PHEV Product Updates: BYD 3Q Results - CleanTechnica

BYD’s third-quarter (3Q) financial results revealed a 3% decline in revenue and a significant 32.6% drop in net profit, underperforming relative to recent growth trends and market expectations. The steep profit decline was largely attributed to a 31% increase in research and development (R&D) expenses and a dramatic 519.65% rise in development capital expenditures, primarily driven by increased in-house R&D investments. R&D expenses alone were roughly double the net profits, indicating that if R&D spending had remained flat, net profits might have increased. Inventory and contract liabilities also rose substantially, reflecting a buildup of updated vehicle models that had not yet been delivered but had already received customer deposits, signaling strong future sales potential. Meanwhile, the balance sheet showed improvement with a 15.14% increase in assets and a 32.53% rise in shareholder equity, supported by a 144.15% surge in construction-in-progress due to new global factory developments.