Generous Profit Distribution at BYD
The Chinese electric vehicle manufacturer BYD has announced a significant increase in its profit distribution for the current year, rewarding shareholders with a comprehensive package of cash dividends and free shares. Specifically, the plan includes issuing eight bonus shares and twelve capital shares for every ten shares held. These capital shares will come from the company’s capital reserves and will be distributed free of charge to existing shareholders. Additionally, a cash dividend of 39.74 Renminbi (approximately 5.49 US dollars) per ten shares will be paid.
Stock Price Rises Following Announcement
As a result of these measures, the number of outstanding BYD shares will increase from the current approximately 3.039 billion to about 9.117 billion – an increase of more than six billion shares. The announcement was very positively received by investors, as the BYD stock price rose by about 3.9 percent to 390.40 HK dollars on the day of the announcement in Hong Kong.
In summary, BYD is demonstrating a commitment to strengthening its ties with investors through this generous dividend and free share policy, while also significantly increasing its equity by issuing additional shares. This has led to substantial investor interest and a rise in stock price on the exchange.