Chinese electric carmaker BYD has reorganized its wholly-owned subsidiary BYD Microelectronics and renamed it BYD Semiconductor in preparation for separately listing it in due course.
As part of the reorganization, BYD Microelectronics bought a 100% stake in Ningbo BYD Semiconductor and Guangdong BYD Energy Saving Technology respectively as well as taking over BYD Huizhou’s businesses related to intelligent photoelectricity, light-emitting diode (LED) light source and LED applications, according to a statement published Tuesday on the Hong Kong Stock Exchange’s website.
The development, production and sales of power semiconductors, intelligent control integrated circuits, smart sensors and optoelectronic semiconductors make up a major part of BYD Semiconductor’s business, the statement said.
Meanwhile, BYD Semiconductor also plans to introduce strategic investors through share allotments, the statement added.
Following the announcement, BYD’s Hong Kong-listed shares rose by 2.03% as of 3 p.m. on Wednesday.
The statement comes after BYD saw its new energy vehicle (NEV) sales more than halve in March compared with the same month last year, as both reduced government subsidies and the coronavirus outbreak dampened consumers’ interest in environmentally friendly cars.
In a separate statement, the Shenzhen-based company said that its net profit attributable to shareholders is likely to drop by up to 93% year-on-year in the first quarter of 2020 due to the coronavirus and a contraction in China’s overall automobile market.
Contact reporter Ding Yi (firstname.lastname@example.org)