Odd Lots · Monday, June 29, 2026
BYD CFO Henry Hoo addressed the challenge of balancing rapid growth, significant AI investment, and shareholder returns, referring to it as an 'impossible triangle'. He highlighted recent successes, including doubled operating profit, strong cloud revenue growth, and positive operating cash flow, while managing capital expenditures more efficiently.
“So I called it impossible triangle. So I kind of scratched my head every few months, every few quick weeks, depends on I also see the headline numbers brooke news with other peers as well, So sometimes I make a little bit kind of hesitating to make a statement, but I just want to tell the facts and tell the views. I want to separate them out. So in the recent quarter earnings, we you know, we mentioned we actually solve partially on these impossible triangles. One is our operating profit increase almost doubled on a Q on Q base and number two, our cloud revenue grew about seventy nine percent on a WILDWI basis, which is almost double off the wildwide growth rate for the cloud market in China. And number three is since Q three last year, our operating cash flow has turned positive.”
“So my point is as a SFO on every project, you need to look at the entire life cycle, not only at one time, but also the pacing important because the foundation model R and D always taking a few months. Right, So these are the things you need to keep our mind. But my statement today is as by do we want to invest probably in a more responsible manner to the shareholders, but do not diminish our ambitious to investment into AI. Keep the right density is important.”