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According to Cnbc, shares of Chinese electric-vehicle giant BYD fell nearly 5% in Hong Kong on Monday after the company released interim results on Friday. BYD pointed to sluggish domestic demand and fierce competition in China, while reporting continued strength in overseas markets.

For the first half, BYD reported revenue of 344.8 billion yuan, down 7.1% from a year earlier. Net profit attributable to the company’s shareholders declined 20.5% to 12.3 billion yuan. The automaker said China’s auto industry faced sluggish domestic demand and robust export growth during the period.

BYD said fierce competition, together with rising costs for commodities, raw materials and chips, squeezed automakers’ profit margins. In the second quarter, however, net profit rose 30% year on year to 8.2 billion yuan, according to Citi. Second-quarter revenue fell 3% from a year earlier to 194.6 billion yuan, Citi said following the automaker’s results release.

Exports climbed 67.8% year on year to 792,000 vehicles in the first half. In China, combined sales of BYD’s FANGCHENGBAO, Denza and Yangwang brands rose 61% year on year, representing 12.8% of the group’s passenger-vehicle sales, despite intensifying competition and temporary challenges to domestic demand.

Citi expects BYD’s third-quarter core earnings to reach 13.5 billion yuan and forecasts full-year net profit of 41.2 billion yuan. The bank said that outcome could be 8% above consensus.