Latest news with #DingHaifeng
South China Morning Post
15-05-2025
- Automotive
- South China Morning Post
China's CATL powers up for overseas push with US$4.6 billion Hong Kong IPO
Advertisement The largest initial public offering (IPO) on the Hong Kong stock exchange in four years also sends a message: that China will widely promote EV technologies – a new source of national pride – around the world in spite of rising trade barriers. 'An overseas listing by China's EV battery champion is more than fundraising,' said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. 'As a public company outside mainland China, the company will draw attention from more international investors and industry officials as it revs up expansion abroad.' CATL, as the company is known, is expected to price its IPO at the top end of a range and increase the offer size to raise about HK$35.7 billion (US$4.6 billion). It planned to sell 117.9 million new shares at HK$263 a share under its base offering, according to a person familiar with the matter. The firm was expected to top up the deal by 15 per cent, or 17.7 million shares, to meet investor demand, the person added. It is expected to be the biggest IPO in Hong Kong since Kuaishou Technology's US$6.2 billion listing in January 2021. Trading is expected to begin on Tuesday. Advertisement CATL said the proceeds would be used to build factories in overseas markets, which account for 30 per cent of its total revenue.
South China Morning Post
13-02-2025
- Automotive
- South China Morning Post
CATL eyes global dominance in EV battery market with US$5 billion cash reload
Contemporary Amperex Technology , mainland China's biggest producer of electric vehicle (EV) batteries, has been shrewd in seizing the opportunity presented by the stock market upswing to tap foreign investors for fresh capital, according to industry executives and analysts. CATL, as the company is known, is eager to replenish its coffers through a first-time Hong Kong stock offering to bolster its business outside the mainland, as it jostles with competitors like LG Energy Solution to supply to the world's biggest EV makers. 'Most of the company's money is in Chinese yuan,' said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. 'A fundraising in Hong Kong will effectively reinforce its ambitions of becoming the undisputed champion of the world's EV battery market.' The Shenzhen-listed company had US$6.7 billion and €3.9 billion (US$4.04 billion) of cash in foreign currencies as of June 30 last year, according to its latest accounts. 02:01 China doubles down on subsidising trade-ins of conventional cars for EVs China doubles down on subsidising trade-ins of conventional cars for EVs CATL, which filed its initial public offering (IPO) plan to the Hong Kong bourse on Tuesday, is said to be seeking at least US$5 billion from its deal, potentially the largest share sale in the city since Kuaishou Technology raised US$6.2 billion in January 2021. Proceeds will be for building factories overseas, where growth has slowed. CATL's successful secondary listing would see the company join the likes of Alibaba Group Holding, Nio, Baidu and many others from the mainland. Alibaba, which owns the Post, raised US$13 billion in 2019 from its secondary share sale in the city.
Yahoo
28-01-2025
- Automotive
- Yahoo
BYD allots US$5 billion for forex derivatives trading to hedge risks from yuan volatility
BYD, the world's largest electric vehicle (EV) maker, has earmarked US$5 billion for foreign exchange derivatives trading to reduce risks to its fast-growing global operations from the yuan's volatility amid rising geopolitical tensions. "To offset the adverse impact from wild fluctuation in exchange rates and save financial expenses, the company has decided to carry out foreign exchange hedging through derivatives trading," BYD said in a filing to the Hong Kong stock exchange on the weekend. "The derivatives trading will be conducted according to operational needs." The Shenzhen-based carmaker, which counts Warren Buffett's Berkshire Hathaway as a shareholder, added that the US$5 billion would be used only for hedging purposes. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. Currency futures are a hedging tool that allows traders to minimise potential losses from currency conversion. Technically, a stronger Chinese yuan would cause the carmaker to suffer foreign exchange losses if the revenue it makes abroad depreciates. BYD's overseas deliveries accounted for 7.8 per cent of its total sales during the fourth quarter of last year. Photo: AFP alt=BYD's overseas deliveries accounted for 7.8 per cent of its total sales during the fourth quarter of last year. Photo: AFP> BYD's plan to trade forex derivatives is a result of its rapid overseas growth, as its mass-market EVs have been increasingly well received outside mainland China. The company has operations in nearly 100 countries. BYD delivered 4.27 million pure electric and plug-in hybrid vehicles in 2024, an increase of 41.3 per cent from a year earlier. It surpassed Volkswagen to become the mainland's largest carmaker - including EVs and petroleum-powered vehicles - last year. The company's deliveries outside the mainland accounted for 7.8 per cent of the total during the fourth quarter of last year. In November, BYD announced it would start delivering its bestselling Sealion 07 SUV, which offers a driving range of 450km, in Europe, hoping to crank up overseas sales. It was the company's seventh pure-electric model to hit the European market, which starts at 189,800 yuan (US$26,140) on the mainland. "BYD is planning ahead as its international business continues to grow," said Ding Haifeng, a consultant at financial advisory firm Integrity. "Currency trading is likely to be volatile and the company has a reason to use hedging tools to avoid losses." The onshore yuan has weakened about 2 per cent against the US dollar since the US presidential election in November. BYD's foray into Europe underpins its confidence in export outlook and cost advantage, even after the European Union voted in October to impose an additional tariff of 17 to 35.3 per cent on Chinese EVs following an anti-subsidy investigation. BYD's cars are subject to a 17 per cent levy in the bloc. Pure EVs assembled in China cost 35 per cent less than those built in other markets, Stephen Dyer, Greater China co-leader and head of the Asia automotive practice at global consultancy AlixPartners, said last year. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved. Sign in to access your portfolio
