Chinese electric-vehicle leader BYD reported second-quarter net income of 6.4 billion yuan (US$895 million), a 29.9% year-on-year decline and its first quarterly profit drop in more than three years. The reversal follows Beijing’s push to curb aggressive discounting and force carmakers to settle supplier invoices within 60 days, measures that have squeezed industry margins. While revenue grew 14% to 200.9 billion yuan, cash pressures deepened. BYD’s working-capital deficit widened to 122.7 billion yuan and its debt-to-asset ratio edged up to 71.1%. Analysts warned the company may miss its goal of selling 5.5 million vehicles this year; it delivered 2.49 million in the first seven months, or 45% of the target. The earnings miss triggered a sell-off, sending BYD shares down more than 7% on Thursday and extending a 16% slide since April. The firm has already slowed production and delayed capacity expansions as domestic demand moderates and competition from rivals such as Geely and Tesla intensifies.