BYD’s Strategic Share Buyback: Fueling Growth with Up to ¥600 Million RMB

Big news from the EV world: BYD (Bǐyǎdí 比亚迪) is making waves with a significant share buyback plan, signaling strong confidence on the back of impressive sales figures.

Let’s dive into what this means for the company and the broader electric vehicle market.

Zooming In: The Nitty-Gritty of BYD’s Share Repurchase Program

On December 5, 2023, BYD Company Limited (Bǐyǎdí 比亚迪) officially announced its game plan.

They’re set to repurchase a slice of their A-shares.

How? By using their own funds through centralized competitive bidding – a pretty standard playbook move.

Here’s the financial breakdown:

• The total repurchase amount is pegged to be no less than ¥300 million RMB (that’s roughly $41.38 million USD).
• And it will be no more than ¥600 million RMB (around $82.76 million USD).
• The ceiling for the repurchase price per share? They’ve capped it at ¥270 RMB (approximately $37.24 USD) per share.

(A quick note on currency: these conversions are based on an approximate rate of 1 USD = 7.25 RMB as of May 13, 2025, as per the original information).

What’s the End Game for These Repurchased Shares?

BYD (Bǐyǎdí 比亚迪) isn’t just buying back shares for kicks.

These shares are earmarked for some key strategic uses:

• An employee stock ownership plan (ESOP). This is a classic move to incentivize the team and align their goals with the company’s success. Happy employees, better products, right?
• An equity incentive plan. Similar to an ESOP, this helps attract, retain, and motivate talent.
• Other uses permitted by national laws and regulations. This is a bit of a catch-all but could include:
  • Share cancellation to reduce registered capital (which can sometimes boost earnings per share).
  • Shares needed for convertible bond conversion.

BYD (Bǐyǎdí 比亚迪) will decide on the specific use depending on how the buyback unfolds and in line with all relevant regulations.

This flexibility is smart, allowing them to adapt to market conditions and internal needs.

• Min Repurchase Amount: ¥300M RMB (~$41.38M USD)
• Max Repurchase Amount: ¥600M RMB (~$82.76M USD)
• Max Repurchase Price: ¥270 RMB (~$37.24 USD) per Share
• Purpose: Employee Stock Ownership, Equity Incentives, Other

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Sales Aren’t Just Strong, They’re Blazing: BYD’s Late 2023 Performance

This buyback isn’t happening in a vacuum.

BYD’s sales momentum in late 2023 is nothing short of spectacular, and it’s clearly underpinning this confident financial maneuver.

According to BYD’s (Bǐyǎdí 比亚迪) own production and sales report released on December 1, 2023:

• The company moved a whopping 301,903 new energy vehicles (NEVs) in November 2023 alone.
• This brought their cumulative sales for the year (up to that point) to an incredible 2,683,374 units. That’s a lot of EVs hitting the roads!
• And they’re not just a domestic powerhouse. BYD (Bǐyǎdí 比亚迪) exported 30,629 passenger vehicles in November 2023, showing their growing global footprint.

Breaking Down the November 2023 Sales: A Model-by-Model Look

Let’s get granular. The diversity in BYD’s (Bǐyǎdí 比亚迪) lineup is a key strength, and the November numbers prove it:

• The Dynasty (Wángcháo 王朝) and Ocean (Hǎiyáng 海洋) series collectively were the cash cows, selling 288,501 new vehicles.
  
  That’s a 23% year-on-year increase – serious growth.
• The Song PLUS (Sòng PLUS 宋PLUS) Champion Edition family continued its reign as a top seller, with 41,379 units sold.
  
  Consistency is key, and the Song PLUS delivers.
• The Qin PLUS (Qín PLUS 秦PLUS) family didn’t disappoint, selling 40,009 new cars.
  
  This marked a new historical high for this popular model.
• The affordable and chic Seagull (Hǎi’ōu 海鸥) model is flying high, achieving sales of 35,010 units.
  
  That’s a solid 13.3% month-on-month increase, indicating rising popularity.
• The Dolphin (Hǎitún 海豚) model also made a splash, selling 35,241 units, up a slight but steady 0.6% month-on-month.
• The Yuan PLUS (Yuán PLUS 元PLUS) Champion Edition (known as the ATTO 3 in many export markets) saw robust sales of 30,481 units.
  
  It’s consistently clearing the 30,000 units per month mark.
• The more premium Han (Hàn 汉) family, known for its sleek design and performance, recorded sales of 20,205 units.
• And the versatile Tang (Táng 唐) family of SUVs sold 19,119 units.

These figures highlight not just volume, but also the breadth of BYD’s appeal across different market segments.

Wall Street Takes Notice: Market Cheers on BYD’s Buyback News

So, how did the market digest all this?

Pretty positively, it seems.

Likely fueled by the combo of the share buyback announcement and these stellar sales numbers, BYD’s (Bǐyǎdí 比亚迪) A-share price got a nice bump.

On December 6, 2023, the stock surged by nearly 5%.

Investors often see share buybacks as a sign that a company believes its stock is undervalued and is confident in its future prospects.

Coupled with undeniable sales growth, it’s a powerful narrative.

This strategic BYD (Bǐyǎdí 比亚迪) share buyback, backed by robust sales performance and a diverse, popular product line, underscores the company’s strong position and ambitious outlook in the competitive global NEV market.

References

• 比亚迪：拟3亿元-6亿元回购公司股份 – Shanghai Securities News · China Securities Network
• China’s BYD plans up to $84 mln share buyback – Reuters
• China’s NEV sales surge in November – China Daily
• Latest News – BYD Company Limited Official Website