To increase the layout of new energy power battery vehicles, BYD refinances nearly 30 billion Hong Kong dollars

On January 21, BYD announced that it will place 133 million new H shares, and the total proceeds from the placement are expected to be approximately HK$29.925 billion. The net proceeds from the placing are intended to be used to supplement the group's working capital, repay interest, and invest in research and development, etc. The company will increase its deployment in the new energy vehicle business. As of the close, BYD H shares rose 1.80% to 248.40 Hong Kong dollars, and A shares rose 6.09% to 235.52 yuan. BYD previously issued the 'Announcement Regarding the Approval of the China Securities Regulatory Commission for the Issuance of New H SharesAccording to the latest announcement of BYD’s 'Publication of New H Shares under General AuthorizationPlacing shares are issued at the placing price. The company will issue 133 million new H shares with a par value of RMB 1.00 per share in the company's registered capital in accordance with the terms and conditions listed in the placing agreement. The total face value of the placing shares to be placed is RMB 133 million. According to the content of the announcement, the placing price per share of the new H shares is 225 Hong Kong dollars. Assuming that all the placing shares are placed, the total proceeds from the placing are estimated to be approximately HK$29.925 billion. After deducting commissions and estimated costs, the net proceeds from the placing are expected to be approximately HK$29.801 billion. After the completion of the placement, the net amount raised per H share (after deducting commissions and estimated expenses) is approximately HK$224.1. Regarding the use of the proceeds from the placing, BYD stated that it intends to use it for the group's supplementary working capital, repayment of interest-bearing, Ru0026D investment and general corporate purposes. The company will seize the industry development opportunities and increase the layout of the new energy vehicle business. Specifically, the company will realize the accelerated replacement of fuel vehicles by new energy vehicles through technological innovation, and realize the leap from traditional vehicles to smart vehicles through the software and hardware layout in the field of automotive intelligence. Relying on the Ru0026D accumulation, technological advantages and pioneering blade battery technology in the power battery field, we will continue to increase the production capacity of power batteries and promote the output of Chinese power batteries to global automakers. The placement also provides a good opportunity for the company to optimize its capital structure and financial structure. It is reported that this transaction has attracted the participation of many long-term, sovereign funds and more than 200 institutional investors around the world. For example, Sequoia China intends to participate in this subscription with a large amount. Other participating institutions include Chinese sovereign funds such as Social Security and CIC, some European and Middle Eastern sovereign funds, and upstream and downstream companies in the battery and automobile industry chain. With the outbreak of the new energy automobile industry, electrification and intelligence are becoming the future development direction of the automobile industry. BYD’s secretary of the board Li Qian said that BYD completed a flash placement of approximately HK$30 billion in H-shares, making it the largest equity financing project in the Asian auto industry in the past decade and the largest non-financial corporate IPO in Hong Kong history. This financing will significantly enhance the company's capital strength, provide strong financial support for the company to increase its investment in automotive electrification, intelligence, and power batteries, help the company achieve rapid business growth, and further consolidate its leading position in the industry.