Zhitong App News: BYD COMPANY (01211) has announced a plan called &#34;Quality Return and Double Enhancement&#34; to implement the guidance of the Central Political Bureau meeting to &#34;activate the capital market and boost investor confidence&#34; and the State Council meeting to &#34;vigorously improve the quality and investment value of listed companies, take more effective measures, focus on stabilizing the market and confidence,&#34; in line with the company's development strategy, operating conditions, and financial situation. This plan aims to safeguard the interests of all shareholders, enhance investor confidence, and promote the long-term healthy and sustainable development of the company.
1. Embrace Long-termism and Expand Core Business
After thirty years of development, BYD has grown into a Fortune 500 company with businesses spanning across the automotive, electronics, new energy, and rail transit sectors. As a global leader in new energy vehicles, BYD has been committed to leading industry transformation and trends in new energy vehicle technology research and market applications, driving the vigorous development of the new energy vehicle industry.
The company's investment value is a crucial element of its core competitiveness. While providing good returns to shareholders, it has significantly enhanced the company's brand image in the capital market, which is also beneficial for expanding the company's product market. Aligned with the China Securities Regulatory Commission's advocacy of long-term investment philosophy, the new energy vehicle industry also requires long-term research and development investment and brand building to create core competitiveness, contributing to the achievement of the national &#34;dual-carbon&#34; goals. In the field of new energy vehicles, through over twenty years of focus and dedication, the company has achieved continuous breakthroughs in technology and products, leading to a record high in new energy vehicle sales in 2023. With eleven consecutive years of ranking first in China's new energy vehicle sales, BYD has further solidified its leading position in global new energy vehicle sales, creating a miracle in the world's automotive industry development. The company will continue to expand its core business solidly, create value for shareholders, and practice long-termism through practical actions.
2. Continuous Investment in R&amp;D, Driving Growth through Innovation
As a high-tech enterprise dedicated to &#34;using technological innovation to meet people's aspirations for a better life,&#34; the company has become a leading manufacturer of new energy vehicles covering the entire industry chain, achieving independent control of the industrial chain and leading innovation in the innovation chain.
Adhering to the development philosophy of &#34;technology is king, innovation is fundamental,&#34; the company has always maintained a high level of investment in technology research and development. As of the date of this announcement, the company has over 90,000 R&amp;D engineers, with a total of over 48,000 patent applications globally, over 30,000 authorized patents, an average of 27 patent applications and 15 patent authorizations per day, and 4 patents awarded. As a technology-driven technology company, the company's technology research and development has always been at the forefront globally. In the automotive field, it has achieved full coverage from vehicle technology to core components such as batteries, motors, and electronic controls, and even vertical integration of upstream automotive-grade semiconductors, building a complete industrial ecosystem covering the entire industry chain. The company will continue to strengthen R&amp;D investment, cultivate new productive forces through continuous technological innovation, and lead the company's high-quality development.
2. Entering the high-end market to promote brand enhancement
In terms of brand upgrading, the company successively launched the &#34;Tengshi&#34; brand, the &#34;Yangwang&#34; brand, and the &#34;Fangchengbao&#34; brand. In 2022, the company's joint venture brand &#34;Tengshi&#34; with Daimler announced a comprehensive renewal, introducing multiple products. In 2023, the Tengshi D9, with an average unit price exceeding RMB 400,000, has been the best-selling new energy MPV for several months. In August 2023, the company released the new energy professional personalized brand &#34;Fangchengbao&#34;, and after the launch of the first product, the rugged off-road Fangchengbao &#34;Leopard 5&#34; in November 2023, it achieved outstanding monthly sales of over 5,000 units in December 2023 and January 2024. The Yangwang U8 pioneered the domestic independent car companies' million-level market. Starting delivery in November 2023, the Yangwang U8 achieved a sales volume of 1,593 units in the first complete delivery month, entering the forefront of global million-level luxury cars. In January 2024, with a monthly sales volume of 1,652 units, it once again led the million-level new energy SUV sales, becoming the new flagship of independent cars. The significant increase in sales of these high-end luxury brand models has greatly enhanced the company's profitability and brand image. In 2024 and beyond, the company will launch more high-end luxury models, aiming to establish a leading position in the high-end market with solid technical strength and ultimate product power.
3. Implementing the overseas strategy and expanding the global market
In terms of the overseas strategy, the company officially launched the new energy passenger car overseas strategy in 2021, leveraging domestic industrial chain advantages, and achieved fruitful results in just a few years: In 2023, the company's exports of new energy vehicles saw a significant year-on-year increase, currently covering more than 70 countries and regions across six continents globally, winning sales champions in markets such as Thailand, Brazil, Singapore, and Colombia. At the same time, it will start local production in Thailand, Brazil, Hungary, and other places, deepen its global layout against the backdrop of the global outbreak of new energy vehicles, strengthen BYD's influence as a Chinese national car brand globally, and continue to actively promote the green transformation of the global energy structure.
II. Practicing the concept of high-quality corporate governance to enhance standardized operation
The company will continue to solidify the foundation of corporate governance, continuously standardize the &#34;three meetings and one layer&#34; governance mechanism, fully leverage the role of the shareholders' meeting as the highest authority, the board of directors in major decision-making, the management in execution, the supervisory board in supervision, and the special committees in professionally reviewing major decisions of the board of directors. Standardize the rights and obligations of the company and shareholders, prevent the abuse of shareholder rights, and protect the interests of small and medium investors from being harmed by the management's dominant position. Encourage small and medium investors to actively participate in shareholders' meetings, facilitate various investor entities to participate in major decision-making, enhance investors' voice and sense of acquisition.
The company will continuously improve the legal governance structure, strengthen the construction of the internal control system, enhance risk management, improve decision-making levels, achieve a virtuous cycle of company development, and provide strong protection for the legitimate rights and interests of company shareholders. The management will further enhance operational management levels, continuously improve the company's core competitiveness, profitability, and comprehensive risk management capabilities, aiming for substantial development and giving back to the vast investors.
<h3>Section Three: Practicing the Investor-Centric Philosophy and Sharing Achievements with Investors</h3>
The company firmly establishes an investor-centric philosophy by focusing on its core business, enhancing company performance, solidifying its leading position in the industry, actively conveying company values, and boosting capital market performance through various means. By utilizing measures such as cash dividends, the company shares the dividends of its rapid growth with all shareholders.
Since its listing, the company has adhered strictly to the profit distribution policy outlined in the Articles of Association to provide stable and sustainable cash dividends. In the past year, the company's cash dividend ratio accounted for 20% of the net profit attributable to shareholders of the listed company. Over the past three years, profits distributed in cash have accounted for 51% of the average distributable profits over the same period.
According to the company's &#34;2023 Performance Forecast&#34; released on January 30, 2024, the company is expected to achieve a net profit attributable to shareholders of the listed company in the range of RMB 29 to 31 billion in 2023, representing a year-on-year growth of 74.46% to 86.49%. The company will continue to balance performance growth and shareholder returns dynamically, adhering to a multi-channel shareholder return mechanism that is &#34;long-term, stable, and sustainable,&#34; sharing industry and company development achievements with its shareholders.
<h3>Section Four: Practicing Investor-Oriented Information Disclosure and Effectively Conveying Company Value</h3>
The company strictly complies with laws, regulations, and regulatory requirements, ensuring that information disclosure remains truthful, accurate, complete, timely, and fair. With an investor-oriented information disclosure philosophy, the company continuously enhances the quality of information disclosure. Since its listing, the company has received an A-level rating in information disclosure evaluations by the Shenzhen Stock Exchange for ten consecutive years. The company will continue to fulfill its information disclosure obligations with high quality, emphasizing the importance and relevance of information disclosure. It will proactively disclose useful information for investors' investment decisions, focusing on key information such as industry competition, company operations, and risk factors while reducing redundant disclosures. The company places great importance on investor relations management, strengthening communication with investors continuously. Through various channels of communication, it aims to deepen investors' understanding of the company's production and operations, better convey the company's investment value, enhance investors' identification with the company, and build market confidence.
<h3>Section Five: Increasing Holdings and Repurchases to Demonstrate Confidence in Long-Term Development</h3>
To drive the company's long-term sustainable development and effectively align shareholder interests with those of the company and core team members, the company actively engages in share repurchases that can be used for employee stock ownership plans, equity incentive plans, or reducing registered capital. It encourages company executives and employees to increase their holdings of company stock to stabilize investor confidence and enhance the overall value of the company.
On April 22, 2022, the company held the 21st meeting of the seventh Board of Directors and the ninth meeting of the seventh Supervisory Board. On May 27, 2022, the company convened the first extraordinary general meeting of shareholders in 2022, where it approved the &#34;Proposal on Reviewing the 2022 Share Repurchase Plan.&#34; As of June 13, 2022, the company had repurchased a total of 5.511 million A-shares through centralized bidding trading, accounting for 0.189% of the total share capital. The highest transaction price was RMB 358.58 per share, the lowest was RMB 293.37 per share, and the total repurchase amount was RMB 1.8097 billion (excluding transaction costs).
The repurchased shares are all used for the employee stock ownership plan, and the above share repurchase plan has been fully implemented.
Based on a strong confidence in the company's development prospects, from August 31 to September 11, 2023, Mr. Luo Hongbin, Senior Vice President of the company, Ms. Zhou Yalin, Vice President and Chief Financial Officer, and Mr. Yang Dongsheng, Vice President, respectively increased their holdings of 5,200 shares, 13,500 shares, and 18,600 shares of the company's A shares.
On December 6, 2023, the company's actual controller, Chairman, and President Mr. Wang Chuanfu proposed that the company repurchase a total of RMB 200 million worth of A shares through centralized bidding trading. The repurchased shares will be used for the employee stock ownership plan, equity incentive plan, or reduction of registered capital, and the specific repurchase plan is subject to approval by the company's board of directors and shareholders' meeting. The company will formulate a reasonable and feasible share repurchase plan and implement it in accordance with market conditions, and will promptly fulfill its disclosure obligations in accordance with relevant regulations.
In the future, the company will firmly establish a shareholder return consciousness according to its development stage, adhere to an investor-oriented approach, continuously enhance shareholder returns, fulfill the responsibilities and obligations of a listed company, continuously practice the &#34;dual enhancement of quality and returns,&#34; focus on the core business, maintain sustainable and healthy development, and strive to enhance investors' sense of achievement through standardized corporate governance and active investor returns, actively contributing to market stability and confidence.

81211

CP00013

BYDDF

01211

002594

BYD COMPANY has released the "Quality Rewards Double Enhancement" action plan, aiming to enhance investor confidence and promote the company's long-term healthy and sustainable development. The company will continue to invest in research and development, strengthen innovation-driven growth, build core competitiveness, and support the achievement of the national "dual-carbon" goals. Through continuous technological innovation, BYD has made great achievements in the field of new energy vehicles, ranking first in China's new energy vehicle sales for 11 consecutive years, further consolidating its global leading position. The company will continue to solidly expand and strengthen its main business, create value for shareholders, and uphold the development philosophy of "technology is king, innovation is fundamental."

BYD Company has announced the "Quality Improvement and Reward" action plan.