BYD intends to raise shares to raise 4.2 billion Hong Kong dollars

BYD announced that the company will place 121.9 million new H shares at a placing price of HK$35 per share. The Placing Shares represent approximately 15.37% of the existing 793.10 million H shares in issue and approximately 5.18% of the total number of shares in issue.

BYD stated that assuming all the Placing Shares are fully placed, the total proceeds from the placing are expected to be approximately HK$4,266.5 million, and the net amount is expected to be approximately HK$4,199.6 million. The net proceeds are intended to be used as general working capital of the company to support business development.

The company stated that new energy vehicles are the development direction of the automotive industry. The company’s strategy is to implement the application of new energy vehicles in the bus market and private car market through public transportation electrification and plug-in hybrid power modes. In 2014, in the field of public transport, the Group's pure electric bus K9 has successively won cities in Nanjing, Tianjin, Dalian, Hangzhou and many overseas orders. In the field of private cars, the plug-in hybrid model “Qin” is in short supply in cities throughout China. In addition, iron batteries are the core technology and key components of new energy vehicles. At present, the company has 1.6GWH iron battery capacity to meet this year's demand, but it is difficult to meet the company's demand for high-speed growth of new energy vehicles. In the future, the increase in production capacity of iron batteries, the research and development of new energy vehicles, and market promotion will require greater investment.