Fake Subsidiary Emerges as BYD Largely Invests in Battery Industry
Recently, a little-known small company in Nanning, Guangxi Province, has received some attention due to its claim to be wholly-owned by BYD. On September 16, the small enterprise focusing on business services changed its name to “BYD (Guangxi) New Energy Co., Ltd.,” claiming to have been acquired by BYD, and then submitted the necessary materials to the local government. The company’s registered capital jumped from 300,000 yuan to 100 million yuan and the scope of business changed to be related to the sales of new energy vehicles and auto parts.
Five days later, the above-mentioned matter was clarified by BYD. According to the Guangxi Nanning municipal government’s website, BYD reported on September 20 that the official seal submitted by the small company in Nanning and the signature of Wang Chuanfu, Chairman of BYD, were all forged, so the change in company registration was cancelled.
Regarding this, on September 26, BYD told Chinese media outlets that the Nanning company had faked the change to bolster its own shareholdings. BYD has no investment or business dealings with the company and has reported the case to local authorities.
SEE ALSO: BYD’s Three Battery Projects in Guangxi Surpass Production Capacity of 60GWh
According to Securities Times, that a company faked its information to become a subsidiary may be due to BYD’s recent large-scale investment in the city of Nanning, and the fake company could take advantage of this opportunity by changing its name. According to public information, BYD has made frequent investments in the city throughout the year. It has laid out at least five major projects with a total planned investment of more than 16.3 billion yuan ($2.27 billion).
BYD’s projects in Nanning include three power battery manufacturing related projects, a comprehensive test site for automobiles, and a new energy automobile and supporting industrial park project.
On April 8 this year, BYD also established Guangxi FinDreams Battery Co., Ltd., whose business scope includes battery manufacturing and sales, recycling of waste power batteries for new energy vehicles, and echelon utilization, or the usage of any power capacity remaining in a discarded battery. On August 26, the new company once again won nearly 1,200 mu of industrial-use land located in Lingli Town, Qingxiu District, with a total transaction price of approximately 336 million yuan. The land is to be used for the development of the new energy automobile industry.
Currently, BYD’s businesses are growing rapidly. Just last month, BYD’s sales volume reached 175,000 vehicles, up 155% from the corresponding period of last year. At the same time, its production-sales ratio reached 100.3% in August, basically at full capacity. From January to August this year, BYD’s cumulative sales volume has reached 984,000 vehicles, up 164% year-on-year, and will soon surpass the million-unit sales volume mark.