比亞迪股份有限公司 Byd Company Limited
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THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular. This circular, for which the directors (“Directors”) of BYD Company Limited (the “Company”) collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief, the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement in this circular misleading. All opinions expressed in this circular have been arrived at after due and careful consideration and are founded on bases and assumptions that are fair and reasonable. If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your licensed securities dealer, other licensed corporation, bank manager, solicitor, professional accountant or other professional adviser. If you have sold or otherwise transferred all your shares in the Company, you should at once hand this circular and the accompanying form of proxy and the reply slip to the purchaser(s) or transferee(s) or to the bank, licensed securities dealer, licensed corporation, or other agent through whom the sale or transfer was effected for transmission to the purchaser(s) or transferee(s). 比亞迪股份有限公司 BYD COMPANY LIMITED (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 1211) Website: http://www.byd.com PROPOSED INCREASE OF SHAREHOLDERS’ DEPOSITS LIMIT; AND NOTICE OF EXTRAORDINARY GENERAL MEETING A notice convening the extraordinary general meeting (the “EGM”) of the Company to be held on Thursday, 10 December 2020 at 10:00 a.m. at the Company’s Conference Room, No. 3009, BYD Road, Pingshan District, Shenzhen, the People’s Republic of China, is set out in pages EGM-1 to EGM-2 of this circular. A proxy form (the “Proxy Form”) containing the proposed resolutions is enclosed herewith. The Proxy Form is also published on the website of the Hong Kong Stock Exchange (www.hkex.com.hk). Whether or not you are able to attend the EGM, you are requested to complete the accompanying Proxy Form in accordance with the instructions printed thereon and return it as soon as possible and in any event not less than 24 hours before the time appointed for the holding of the EGM (i.e. not later than 10:00 a.m. on Wednesday, 9 December 2020) or any adjournment thereof. Completion and return of the Proxy Form will not preclude you from attending and voting in person at the EGM or any adjourned EGM should you so wish. 20 November 2020 CONTENTS Page Definitions ...................................................... 1 Letter from the Board ............................................ 3 1. Introduction ............................................. 3 2. Proposed Increase of Shareholders’ Deposits Limit ................ 4 3. TheEGM................................................ 5 4. Recommendations ......................................... 6 Notice of Extraordinary General Meeting ............................. EGM-1 –i– DEFINITIONS In this circular, the following words and expressions shall, unless the context otherwise requires, have the following respective meanings: “A Share(s)” ordinary domestic share(s) with a nominal value of RMB1.00 each in the share capital of the Company which are listed on the Shenzhen Stock Exchange and traded in RMB; “Articles of Association” the articles of association of the Company, as amended from time to time; “Board” the board of Directors of the Company; “BYD Auto Finance” BYD Auto Finance Company Limited (比亞迪汽車金融 有限公司), a company incorporated in the PRC with limited liability; “China” or “PRC” the People’s Republic of China, excluding, for the purpose of this circular only, Hong Kong, Macau Special Administrative Region, and Taiwan; “Company” BYD Company Limited, a joint stock company incorporated in the PRC with limited liability; “Director(s)” the director(s) of the Company; “EGM” the extraordinary general meeting of the Company which is scheduled to be held at the Conference Room, No. 3009, BYD Road, Pingshan District, Shenzhen, the PRC on Thursday, 10 December 2020 at 10:00 a.m.; “EGM Notice” notice convening the EGM as set out on pages EGM-1 to EGM-2 of this circular; “Group” the Company and its subsidiaries from time to time; “H Share(s)” ordinary overseas listed foreign invested share(s) with a nominal value of RMB1.00 each in the share capital of the Company which are listed on the Hong Kong Stock Exchange and traded in Hong Kong Dollar; “Hong Kong” the Hong Kong Special Administrative Region of the PRC; –1– DEFINITIONS “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited; “Listing Rules” the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange; “RMB” Renminbi, the lawful currency of the PRC; “SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong); “Share(s)” A Share(s) and H Share(s); “Shareholder(s)” registered holder(s) of the Shares; “Shenzhen Listing Rules” the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange; and “Shenzhen Stock Exchange” the Shenzhen Stock Exchange. –2– LETTER FROM THE BOARD 比亞迪股份有限公司 BYD COMPANY LIMITED (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 1211) Website: http://www.byd.com Board of Directors: Registered Office: Executive Director LEGAL ADDRESS Mr. Wang Chuan-fu No. 1 Yan’an Road Kuichong Sub-district Non-executive Directors Dapeng New District Mr. Lv Xiang-yang Shenzhen Mr. Xia Zuo-quan Guangdong Province The PRC Independent non-executive Directors Mr. Cai Hong-ping PRINCIPAL PLACE OF BUSINESS Mr. Zhang Min IN HONG KONG Mr. Jiang Yan-bo Unit 1712, 17th Floor Tower 2 Grand Central Plaza No. 138 Shatin Rural Committee Road New Territories Hong Kong 20 November 2020 To the Shareholders Dear Sir or Madam, PROPOSED INCREASE OF SHAREHOLDERS’ DEPOSITS LIMIT; AND NOTICE OF EXTRAORDINARY GENERAL MEETING 1. INTRODUCTION The purpose of this circular is to provide you with the information in connection with a resolution to be proposed at the EGM to enable you to make a decision on whether to vote for or against the relevant resolution at the EGM, and to give you the notice of the EGM. –3– LETTER FROM THE BOARD 2. PROPOSED INCREASE OF SHAREHOLDERS’ DEPOSITS LIMIT BYD Auto Finance, a company incorporated in the PRC which is owned as to 80% by the Company and 20% by the Bank of Xi’an Co., Ltd. (西安銀行股份有限公司), is mainly engaged in the provision of auto loans to customers who purchase any series of vehicles under the BYD brand. Since the commencement of operation in 2015, it accomplished a rapid and steady growth on business operation and made a profit in the first year. The shareholders’ deposits placed by the Company with BYD Auto Finance will not only be beneficial to BYD Auto Finance for supporting its business development, but also be in favour of the Company for receiving a higher rate of return on its own funds than investing as bank deposits for the same period. It also enables the Company to provide better financial support services to customers through BYD Auto Finance for their purchase of vehicles, which has a positive impact on the expansion of the Company’s business scale. Therefore, the Company intends to increase the limit for its shareholders’ deposits with BYD Auto Finance from RMB2.0 billion to RMB4.0 billion. The principal terms of the shareholders’ deposits are set out as follows: Parties : (1) The Company (2) BYD Auto Finance Revised deposit limit : RMB4.0 billion Term : From the date of approval at the EGM to 31 July 2023 the (“Maturity Date”) Interest rate : Based on the benchmark interest rate published by the People’s Bank of China for deposits with financial institutions in the PRC plus an upward margin (which is determined by both parties based on comprehensive factors such as market interest rates, finance costs and market rate of return) Payment of principal and return : The principal and the return of the investment will be paid on the Maturity Date Restriction on withdrawal : No early withdrawal is allowed within three months from the deposit date. Deferred withdrawal interest rate and early withdrawal interest rate apply based on the interest rate announced by the People’s Bank of China on the actual withdrawal date. –4– LETTER FROM THE BOARD As Ms. Zhou Ya-lin, the Chief Financial Officer of the Company, is also the chairperson of BYD Auto Finance, BYD Auto Finance is therefore a connected person of the Company under section (3) of Rule 10.1.3 of the Shenzhen Listing Rules. As the proposed limit of shareholders’ deposits accounts for more than 5% of the Company’s most recent audited net assets, the proposed increase of the shareholders’ deposits limit is subject to Shareholders’ approval at the EGM according to the Articles of Association and the Shenzhen Listing Rules. The Company will comply with relevant requirements under the Listing Rules upon execution of the relevant deposit agreement(s) if such deposits constitute transactions which are subject to disclosure under the Listing Rules. The Board (including the independent non-executive directors of the Company) considers that the shareholders’ deposits placed by the Company with BYD Auto Finance will not harm the interests of the Company and the Shareholders.