收入下滑导致比亚迪股价下跌

Shares in BYD, the Chinese carmaker backed by Warren Buffett, have fallen after it reported poor earnings¹.

由沃伦·巴菲特赞助的中国汽车商比亚迪收益差强人意，导致其股价下跌。

BYD shares slumped² by as much as 9% in Hong Kong on Wednesday, after several analysts⁴ cut their outlook on the company.

The stock has already lost more than a quarter of its market value this week.

First-half net income fell 89% to 275 million yuan ($43m;£26m) from the same period a year earlier on lower sales.

The Shenzhen-based carmaker also warned of another possible loss in the third-quarter.

The company said vehicle sales in China fell after the government withdrew stimulus⁵ policies, such as preferential（优先的） tax for small cars.

It's also facing increased competition in the world's biggest auto⁶ market from foreign rivals like General Motors and Volkswagen.

Profits at BYD's battery, cell phone parts and assembly businesses have also fallen, which it attributed to competition and higher costs.

Zhang Yu, an analyst³ at AJ Securities, said it needs to change its strategy.

"The challenge facing BYD is more than a market slowdown. BYD had been expanding too fast in the past years," he said.

Billionaire US investor⁷ Warren Buffett owns about 10% of BYD through his company MidAmerican Energy.

His stake in BYD has lost about $2bn of value since its peak, but is still trading at nearly double what he paid for it.