BYD plans to purchase lithium power equipment from Dongguan Derui, a participating company, with a transaction value of no more than 420 million yuan.

On the evening of September 29th, BYD (002594) announced that in order to meet the needs of production and operation, the company and its subsidiaries plan to purchase lithium power equipment from Dongguan Dirui Precision equipment Co., Ltd. (hereinafter referred to as "Dongguan Dirui"). The amount of related party transactions is expected to be no more than 420 million yuan.

As of December 31, 2020, Dongguan Delui's total assets are RMB 153 million yuan and net assets are RMB 97 million yuan. In 2020, the main income is RMB 118 million yuan and the net profit is RMB 2 million yuan (after audit). As of June 30, 2021, Dongguan Derry's total assets are RMB 236 million and its net assets are RMB 108 million. From January to June in 2021, the main income is RMB 121 million and the net profit is RMB 11 million (unaudited).

BYD said that the company's rising sales of new energy vehicles have led to an increase in demand for power batteries, while the external supply of power batteries continues to advance and the demand for external supply increases. Dongguan Derry's lithium power equipment business has accumulated rich experience in technical research and development, production and operation and customer service, and has a certain competitive advantage. This related party transaction is to meet the actual needs of the company and its subsidiaries in the construction of power battery production line, and it belongs to normal business relations. This transaction will help the company and its subsidiaries to further improve the production capacity of power batteries, support the growth of the company's sales of new energy vehicles, and promote the company's market share of new energy vehicles, which is in line with the company's sustained and active development strategy in the field of new energy vehicles.

Data show that BYD sold 67600 passenger cars in August, of which 60500 new energy vehicles (including 30100 DM models and 30400 EV models) were sold, up 332% from a year earlier, setting a new industry record. From January to August, BYD sold a total of 266000 new energy vehicles, an increase of 193% over the same period last year. Plug-in hybrid and pure electric walk on two legs, the market continues to break out.

In addition, BYD's total installed capacity of power batteries and energy storage batteries for new energy vehicles in August was about 3.521G who and its total installed capacity from January to August was about 19.229GWh.