GAC BYD: Frontline Personnel of the Three Departments Take 3 Months' Leave

Yesterday, a "Guangzhou BYD New Energy Bus Co., Ltd." 3-month holiday red-headed document circulated in the network, the document mentioned, "according to the current production and operation arrangements of the company, the production department, quality department, planning department on-site first-line personnel holiday arrangements, time is March 1, 2019 to May 31, 2019." For this file, BYD said that the new energy bus industry has a relatively obvious off-peak season. As it is in the off-season of production in the near future, the joint venture company adjusts the work of some production line employees (supporting BYD's factory production or short-term paid vacation in Shenhui area) on the basis of the principles of responsible and humane management and respecting the wishes of the employees. This is only a short-term activity of the joint venture company in order to adapt to the production situation. The joint venture company operates normally and will arrange full production during the peak production season. The Joint Venture remains confident of overall sales and operations in 2019. In addition, BYD Group, a number of new energy vehicle orders, supply exceeds demand, BYD on the development of new energy vehicle business prospects and growth space is very optimistic. According to Tianyancha information, Guangzhou BYD New Energy Bus Co., Ltd. Is a joint venture company established by BYD and Guangzhou Automobile Group (11.910,-0.18,-1.49%), established on August 4, 2014, with a registered capital of RMB 300 million yuan, and its registered address is Pearl Industrial Park, Conghua Economic Development Zone, Guangzhou. BYD mainly deals in new energy buses and related technologies, development, production and sales of pure electric buses, plug-in hybrid electric buses, traditional commercial buses and Key Components. On August 4, 2014, BYD also announced that the board of directors deliberated and passed the "resolution on the construction project of BYD New Energy Bus of Guangzhou Automobile". The company will jointly invest with Guangzhou Automobile Group to establish Guangzhou BYD New Energy Bus Co., Ltd., in which BYD holds 51% of the shares and Guangzhou Automobile Group holds 49% of the shares. However, according to BYD's annual reports, the company is not "a major subsidiary of BYD and a shareholding company with an impact of more than 10% on net profit". In 2014, BYD invested RMB0 at the beginning of the period, RMB61.2 million at the end of the period and RMB60.69 million at the end of the period. In the 2017 annual report, BYD's long-term equity investment in the company had an initial balance of 7.747 million yuan and a closing balance of 6.091 million yuan, while the investment gain and loss determined under the equity method was only-1.656 million yuan. BYD's new-energy passenger cars are mainly sold abroad, mainly in the Netherlands, Hungary, France, the United States, Nepal, Chile, Colombia, Ecuador, Brazil and Uruguay. However, due to the macroeconomic downturn, Sino-US trade friction, subsidy recession of new energy vehicles, purchase tax policy withdrawal and other factors, BYD electric bus orders fluctuated. The BYD holiday also highlights the lack of business orders, BYD in the expansion of the entire industrial chain, can not fully take into account the situation. We will keep an eye on BYD's internal posture. But it is undeniable that GAC-BYD's move will inevitably set off another wave.