BYD’s Profit News Excites Investors
The Chinese electric car manufacturer BYD has announced a generous profit distribution, including both cash dividends and bonus shares. This measure led to a positive reaction from investors and a significant increase in BYD’s stock price on the Hong Kong stock exchange by about 3.9 percent to HKD 390.40.
Details of the Profit Distribution
Specifically, BYD plans to distribute eight bonus shares and twelve capital shares from reserves for every ten shares held to existing shareholders free of charge. Additionally, a cash dividend of 39.74 Renminbi (approximately USD 5.49) per ten shares will be paid. This issuance increases the number of outstanding shares from around 3.039 billion to approximately 9.117 billion – an increase of more than six billion shares.
Positive Signal for Investors
This decision strengthens the bond with investors and signals confidence in the company’s growth potential in the rapidly growing electric vehicle market. The news is particularly significant in the German-speaking region, as BYD, as a major player in the global electromobility sector, generates great interest.
- Bonus Shares: For every 10 shares held, shareholders will receive an additional 8 bonus shares.
- Capital Shares: For every 10 shares held, there will be an additional 12 free shares from capital reserves.
- Cash Dividend: Payment of approximately 39.74 RMB (approximately 5.49 USD) per ten shares.
- Share Increase: Increase of the total number of issued shares from approximately 3 billion to over 9 billion.
- Market Reaction: Stock price rise of nearly +4% in Hong Kong.
These measures demonstrate BYD’s strong positioning and attractive return policy to its shareholders.