Wang Chuanfu's wife cashed in for 245 million yuan, and his family continued to reduce BYD holdings

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said: The large-scale reduction of his wife Li Ke's holdings is just a continuation of the Wang Chuanfu family's past cash reductions.

The spouse reduced their holdings and cashed out 245 million

Wang Chuanfu's family once again reduced the company's shares on a large scale. On January 26, BYD issued an announcement. As of the date of this announcement, Ms. Li Ke holds 0.44% of the company's total share capital, and plans to reduce its holdings by no more than 1 million shares, which account for no more than 0.04% of the company's total share capital.

Li Ke is known as BYD's "best female worker" and holds the most company shares among all BYD's senior women. However, the actual identity of this most powerful female worker is Wang Chuanfu's wife. It is reported that Ke Li joined BYD as early as 1996, and has served as marketing manager, sales general manager, executive director and chief executive officer of BYD Electronics International Co., Ltd., and is currently senior vice president of BYD. Calculated according to the closing price on January 28, Li Ke cashed out nearly 245 million in this reduction.

Regarding the reasons for Li Ke’s reduction of holdings, BYD emphasized in the announcement: “Due to personal funding needs. Ms. Li Ke has held the company’s shares for more than ten years. Ms. Li Ke stated that he is still confident in the company’s development prospects and will continue to be long-term. Resolutely hold the company’s shares."

Although BYD is the car company with the highest market value among A-share listed companies, it still has the color of a family business. In the company's senior management team, in addition to Li Ke, Wang Chuanfu's cousin Lu Xiangyang and brother Wang Chuanfang also hold high-level positions. According to BYD's annual report, Lu Xiangyang is currently the Vice Chairman of BYD. Wang Chuanfang is currently the Vice President and General Manager of the Logistics Department of BYD, and he used to be the Personnel Manager. Wang Chuanfang also joined BYD in 1996, and Lu Xiangyang co-founded BYD with Wang Chuanfu in 1995.

When Wang Chuanfu started his business, Lv Xiangyang has continued with his investment accumulation. At that time, Lv Xiangyang took a fancy to Wang Chuanfu's technology and lent him two million to start his own business. Afterwards, Lv Xiangyang also received a large number of shares in return from Wang Chuanfu. Currently, Lu Xiangyang is still BYD's third largest shareholder, and the proportion of individual shareholders is second only to Wang Chuanfu.

relatives are senior executives and have repeatedly reduced their holdings

Not only Li Ke, but also Lv Xiangyang's companies have recently reduced their holdings of BYD shares.On August 8, 2020, BYD announced that Rongjie Investment intends to reduce BYD’s holdings by no more than 8.8 million shares within six months, accounting for no more than 0.33% of the total share capital. The latter is created by Lu Xiangyang and his spouse Zhang Changhong. Shareholding control, the two hold 89.5% and 10.5% of Rongjie Investment. In May 2020, Lu Xiangyang's brother Lu Shouguo reduced his holdings of BYD shares by 5,900 shares.

Since BYD went public, the Wang Chuanfu family has repeatedly reduced their shares in the company. In July 2014, Wang Chuanfang had reduced his holdings of 2 million shares of BYD. In 2015, Wang Chuanfu reduced his stake in BYD by 58.25 million shares and cashed out more than 3 billion yuan. As early as 2009, Wang Chuanfu had reduced his holdings of 11,177,700 BYD H shares and cashed out 280 million Hong Kong dollars. Currently, Wang Chuanfu holds 18% of BYD shares, and in 2009, this proportion was 27.8%.

While the Wang Chuanfu family has successively reduced their holdings, BYD's share price has risen in recent years. Since January 3, 2020, the company's stock price has risen from 46.35 yuan to 244.36 yuan, with a total market value of 675.8 billion yuan, making it the highest market value auto company in A-shares. It is worth mentioning that the high market value has also pushed up BYD's price-earnings ratio, and the company's price-earnings ratio has now reached a high of 147 times.

At the same time, BYD’s performance has not improved, and even the total sales volume has declined. There is still a big gap compared with domestic giants. In 2020, the company's total sales volume was 427,000, a year-on-year decline of 7%. During the same period, the total sales volume of SAIC Motor reached 5.6 million vehicles, but the latter’s current market value was only 265.2 billion yuan, less than half of BYD, and its price-earnings ratio was 11.95 times, which is a huge gap compared with BYD.

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