BYD Discloses Progress on Shaoxing Battery Production Base

Chinese electric vehicle maker BYD on Tuesday disclosed recent progress on its new energy power battery production base in Shaoxing, Zhejiang Province. The total investment of the project is about 13 billion yuan ($1.93 billion), covering an area of about 1,800 mu (1.2 square kilometers), and the estimated annual output value will exceed 20 billion yuan.

Wang Chuanfu, the chairman and president of BYD, said that Shaoxing, as one of the first batch of cities promoting new energy vehicles, offers great advantages. The power battery production base, taking only about 10 months from start to production, will have a great impact on the city and the group, Wang said.

This project enjoys the largest investment and the highest output value of BYD in Zhejiang. The investment in the first phase is 7 billion yuan, 6 billion yuan of which will be used in the blade battery project with an annual output of 15GWh.

In 2020, BYD began to integrate its battery business and set up a subsidiary called FinDreams Battery. This year, FAW and BYD also jointly invested 13.5 billion yuan, accounting for 49% and 51% of shares respectively, to establish FAW Fudi New Energy Technology Co., Ltd. to produce power batteries. According to the plan, it can meet the demand of 600,000 electric vehicles every year.

BYD, which had previously announced that it would stop all production of fuel-based vehicles, saw its market value exceed one trillion yuan on June 10, becoming the first A-share car company to reach the milestone. According to its financial report, total revenue in the first quarter this year was 66.825 billion yuan, up 63.02% year-on-year, while its net profit was 808 million yuan, up 240.59% year-on-year. In the first quarter, it sold 286,300 new energy vehicles, up 423% year-on-year.

In addition, BYD announced on Tuesday that share repurchases had been finished. All repurchased shares will be used for employee stock ownership plans, with a price tag of 0 yuan per share. Qualified employees for the plan will total no more than 12,000, including employee representative supervisors, senior managers, middle managers and core backbone employees of BYD.

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