The Geneva Motor Show 2024 showed the BYD SEAL EV as the company tried to expand sales outside China.
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BYD is a Chinese electric vehicle Juggernaut led by billionaire Wang Chuanfu, intending to raise HK$43.5 billion (US$5.6 billion) on its stake in response to fierce competition at home and expand abroad.
According to a document on the Hong Kong Stock Exchange on the same day, the shares of the two-listed company fell to Hong Kong at 10:30 a.m. Tuesday, and soared 4.4% at 10:30 a.m., after which BYD announced plans to file an application with the Hong Kong Stock Exchange on the same day, which plans to issue HK$129.8 million in new shares at HK$335.2 respectively at HK$335.2, according to a filing on the same day. The filing shows that as of March 3, the average closing price discount of the pricing and BYD for 10 consecutive trading days was 11.8%.
BYD's stock is still up 30% in Hong Kong this year. The company will use the proceeds for technical research and global expansion, the company wrote in its filing.
The company hopes to generate half of sales in overseas markets, jumping from 30% of total RMB 30.1 billion (US$43 billion) in the first half of 2024, the latest financial results. Overseeing the drive is Executive Vice President Stella Li, who was on the 2024 list of power business women in Asia.
Bid is building a factory in Hungary and is expected to start production of cars in the second half of this year. It also announced plans to build a major facility in Mexico, which is reportedly to create about 10,000 jobs.
The fierce competition at home also played a role in Byd's need to raise funds, the message sent through Wechat said.
Hong Kong listed stocks soared more than 40% this year to boycott competitors including billionaire Lei Jun's Xiaomi, and Byd is introducing advanced smart driving features to some of its entry-level models. In February, the company announced its “Eyes of God” plan, and certain models under $100,000 ($13,700) will be equipped with autonomous driving features such as autonomous navigation and self-play.
According to WEN, the plan could cause the company's gross profit margin to drop by 2 to 3%. But as its overseas factories began producing cars, Byd transported 5.7 million electric vehicles in May this year, a 34% increase from the 4.27 million cars sold in 2024.
