On April 22, BYD announced to actively reward investors and optimize the company's capital structure. Based on the 12.077 billion yuan dividend scheme, it plans to distribute 8 bonus shares for every 10 shares held, and to convert 12 shares into capital reserve for every 10 shares.

After the implementation of the stock dividend and capital reserve conversion into share capital plan, BYD's total share capital will increase from 3.039 billion shares to 9.117 billion shares.

According to BYD's previous annual report, in 2024, BYD is expected to achieve revenue of 777.1 billion yuan, a year-on-year increase of 29%; net income of 40.25 billion yuan, a year-on-year increase of 34%. BYD plans to distribute a cash dividend of 39.74 yuan (after tax) for every 10 shares based on the current total share capital of 3.039 billion shares, with a total cash dividend amount of approximately 12.077 billion yuan, setting a new historical high.

According to a report by Securities Times·e Company, BYD has had a compound annual growth rate of about 2% in share capital since its A-share listing in 2011, which is lower than the compound annual growth rate of approximately 29.6% for its net income attributable to shareholders during the same period. Compared to most listed companies of similar scale and market cap, BYD has a smaller total share capital, and the purchasing cost per lot of stocks is relatively high, which restricts the liquidity of the company's shares.

Industry insiders analyze that this stock dividend and capital reserve conversion into share capital plan is beneficial for all shareholders to share the company's operating results as well as to optimize the company's capital structure.

Some analysts believe that global technology leading stocks are highly sought after by capital. Taking NVIDIA as an example, it announced a "1-to-10" stock split plan last year, greatly lowering the threshold for investor participation and increasing the liquidity of its stocks, allowing more small and medium-sized investors to share in its development dividends. In recent years, BYD's performance has grown rapidly, driving its stock price to continue rising, and thus increasing the investment threshold for BYD stocks. Through stock dividends and capital reserve conversion into share capital, the investment threshold for BYD stocks can be significantly reduced, enhancing the liquidity of the company's stocks and allowing more small and medium-sized investors to share in the dividends from the company's rapid growth.

In addition, according to the pre-profit announcement released by BYD, the company expects to achieve net income attributable to shareholders of 8.5 billion to 10 billion yuan in the first quarter, an increase of 86.04% to 118.88% compared to the same period last year, continuing to maintain a high-speed growth momentum.

BYD announced that during the reporting period, the company's sales of new energy vehicles set a new historical high for the same period, and overseas sales of new energy vehicles achieved leapfrog growth, further consolidating its leading position as the top seller of new energy vehicles globally. In addition, the company's continuous expansion of scale effects and vertically integrated strategic layout has significantly contributed to the substantial growth of the group's business profits.

Editor/rice