background interview

Reporter: There is a saying, that when you listed your high-speed growth period has passed you recognize this statement do?

over the same period

: Wang of the BYD Company Limited, chairman of 07 : 05

also, this should not

should we the BYD growing fast, then, the traditional vehicle have had for a high-speed growth, the rapid growth of new energy has not come yet, in the year after next year, then, new energy, then the rapid growth to.

we have just seen is that before the in BYD return to A shares in 2011, Wang’s interview, and now it sounds as if is yesterday. But, unfortunately, the individual self-confidence to maintain two months.

in August 2011, BYD published the first report card of the A-share listed, I doubt become a reality: semi-annual show, BYD mid-2011 net profit of 2.75 billion, up to drop by 88.6%.

March 26, 2012, BYD released 2011 annual report, the annual report, BYD’s self-confidence, and then poured a pot of cold water. In 2011, BYD achieve operating income of 48.8 billion, an increase of less than 1%; net profit of 1.385 billion, down 45%; operating profit of 1.41 billion, down 49.04 percent.

here to remind everyone to pay attention to the data: operating profit. This data, BYD’s performance Changing Faces added a bit mysterious. Under the current provisions of the issuer during the continuous supervision, the company listed year operating profit year on year decline of more than 50%, the SFC will be based on the severity of the plot, the relevant sponsor representatives punishment, or even revoke the eligibility of its sponsor.

This means that BYD “precision” drop in operating profit, control in less than 50%, which makes two of UBS Securities Sponsor, wiping the red line the edge of the fluke on The escape is supposed to be is “a virtual certainty” of punishment. Why? Look at this table: in the first half of 2011, of BYD operating profit decline of 87.55%; three quarterly published when is still up to 84.49%. Therefore, the market believes that BYD’s full-year operating profit will decline more than 50%, sponsor board to pay, “That is what a miracle it.

you really not to mention, that the miracle really took place. A few days before coming to an end in 2011, BYD suddenly sold an earnings outlook is very good company equity by such an “investment income”, stunned the business profits back to the red line above. BYD enough loyalty. However, I do not know BYD shareholders know, this kind of “loyalty” is the price of RMB 400 million to 30 million, equivalent to 30% of BYD’s annual operating profit.

then became well-known rivers and lakes BYD actually fell one to sell their assets, “the point, why?

Previously, we are also multi-contact BYD, interview performance change, but they are rebuffed. To tell the truth, even if BYD accepted our interview, I can imagine what is the performance Changing Faces, the explanation given by BYD.

In fact, whether the annual report, or (2012) report results shows will be held online on March 30, BYD The Changing Faces of the results attributed to changes in market environment. And, when the reporter called BYD, inquire about the timing and magnitude of such changes in the market, we should have been answered.

BYD investor relations department staff: I think you are to pursue this issue, I do not think makes sense. I do not know this information in the end you want to do anything. If you are to invest, I think, you do not need these, unless you are said to pursue corporate responsibility, and in fact, from a results point of view, I think as the A-share investors, you are also beneficial.

For this answer, the only two words to express my feelings right now: silent. So, BYD employees how to treat the company’s performance change?

Baolong Industrial Park in Shenzhen, BYD, the reporter struck up a conversation with a young man dressed in BYD tooling. He told reporters that since the second half of last year, where their cell phone parts shop orders significantly reduced, and even overtime have rarely had.

the BYD Staff: used to work overtime every day, now to die.

Reporter: one day add a few hours?

BYD employees: two hours.

Reporter: now?

the BYD employees: Sunday are not (overtime), and Sunday are rest.

Reporter: overtime plus much more, would be tantamount to what?

the BYD employees: and more overtime, and wages are definitely some

Reporter: mean that you can do a little more

BYD employees: is the

Reporter: now equal to the relatively free, or what?

the BYD employees: now equal to all right did.

The staff told reporters that the workshop where their cell phone batteries, wages, although up, but the rest of the time is more income than before, and have actually less.

to work every day

the BYD employees: , then a month down, it was two or three thousand dollars, is inefficient. Complaints very serious, several companies of complaints, Nokia, Samsung are complaints, so that IT This one now is not very good.

frankly, compared to the front of the interpretation of BYD for the performance of face changing, we appreciate that, in November 2011, Wang made more than 50 media reporters “10,000-word speech”. That up to four hours of communication, Wang “mistaken identity” began to the end of the “effort”; he admits: “step by step the way, the whole process has made a lot of mistakes.” In other words, BYD own mistakes, is the essence of the performance Changing Faces.

of course, in some ways, that is, BYD “technology”, “low-cost expansion” and “vertical integration model” obsession so that they are quickly lost in the puzzle of the “barbaric growth” which . BYD started by “human wave tactics”, once with 200,000 employees, it was calculated that an account staff monthly expenditure of an up to 700 million yuan. To dream of a new energy industry, BYD, all of a sudden on the fly billions of real money, but is difficult to generate decent returns in the short term, but is a drag on another two chicken to give it to lay eggs.

leaves

Tan of financial commentators: BYD before the listing a lot of people questioned, in fact, later the direction of development is in accordance with the direction of the questioning to go. BYD before the listing of its main business, its traditional vehicles the risk in this one is not exposed, but wait until it is listed, we had already begun to question. Listed after the exposure, in fact, are related with the questioning.

has been in trouble BYD, Wang also proposed to use three years to “strategic adjustment”. Qiazhiyisuan three years later, similar also to Wang put forward in 2015 to achieve China’s “that time.

remember an insiders had this assessment: “BYD, BYD did not you think so, nor as bad as you imagine.” I very much agree. Reporter investigation, to continue tomorrow.

Links

Founder Securities BYD eight companies accused of the packaging market

car prices executive compensation list released BYD executive pay dominated the domestic

the

BYD net profit fell 45.13 percent layoffs 5693