Short-term debt repayment pressure is relatively high.
Editor’s note: This article is from “Future Car Daily” (WeChat public ID: auto-time), author: Xiao Cheng Yi.
Author | Cheng Hao
Editor | Li Huanhuan
On the evening of November 22, BYD announced that it will issue corporate bonds in a shelf-type manner with a total issued size of no more than RMB 10 billion. The bond term will not exceed 10 years, and the accumulated bond balance of the company after the issuance shall not exceed 40% of the company’s net assets at the end of the most recent period. According to the announcement, the bond is intended to be used to supplement working capital, repay corporate loans and other purposes in compliance with laws and regulations.
Affected by this news, BYD’s share price opened slightly higher today, with an opening price of 44.16 yuan. As of press time, the increase was 1.83%. Overall, the Shanghai Composite Index was 2885.61 points, up 0.01%; the Shenzhen Component Index was 9626.41 points, down 0.01%.
BYD’s debt issuance, or the pressure on short-term debt repayment. According to BYD’s third quarter report for 2019 The company’s non-current liabilities due within one year reached 6.687 billion yuan, and the asset-liability ratio narrowed year-on-year, but still reached 68.48%. As of the end of the third quarter, short-term loans amounted to 43.01 billion yuan, an increase of 13.79% compared with the end of 2018, an increase of about 5.212 billion yuan.
In addition, the 2019 third quarter report also showed that BYD’s accounts receivable amounted to 48.014 billion yuan, of which the government subsidy amount was still about 20 billion yuan, which took up BYD’s working capital.
Yang Dongsheng, Dean of Product Planning and Automotive New Technology Research Institute of BYD Auto Industry Co., Ltd. once told the Future Auto Daily (ID: auto-time) that government subsidies are very helpful to the industry, but the subsidy needs to be advanced by the company. Capital turnover for companies is a big challenge.
According to Wind statistics, since 2019, BYD has issued at least 16 bonds, which is an important means for BYD to raise funds. An auto industry analyst said that in general, companies that can obtain debt is a relatively high-quality company, preferring to see it as good.
This is the storage system issued by BYD. It is an approved and re-financing system that is issued multiple times, that is, it does not need to be re-registered every time.Strong flexibility.
(I am the future car daily author Cheng Wei, pay attention to intelligent network, auto-driving and sharing travel dynamics, welcome to exchange and broke the news at any time. Please add WeChat tuanzi_C, add please note name, company, position.)
