BYD AGM Weighs $7 Billion Share Dilution as Pentagon Ban and Record Exports Create a Split Screen

BYD seeks to issue up to 20% new shares and raise 50B RMB in debt as exports surge 80% but domestic sales fall 24% and stock sits near 52-week low.

Shareholders in BYD gathered in Shenzhen today for a high-stakes annual meeting that will determine whether the Chinese electric-vehicle giant can raise billions in fresh capital while simultaneously fending off a Pentagon blacklist and a deepening domestic sales crisis. The gathering comes as the stock hovers just 2.79% above its 52-week low of €9.51.

The Pentagon added BYD to its list of Chinese military companies on Monday, effectively barring the group from US defense contracts. The Chinese embassy in Washington dismissed the move as a pretext for protectionism, arguing that security concerns are being used as a trade barrier. The listing compounds a brutal year for the stock: since touching a high of €44.99 on June 9, 2025, the H-shares have collapsed roughly 78%, and the 14-day relative strength index currently sits at a bearish 36.3, with the price 11.6% below its 200-day moving average.

Yet beneath the share-price carnage, BYD’s international business is firing on all cylinders. May exports hit a record 160,644 vehicles, an 80% surge year-on-year, pushing overseas sales to 42% of total volume. The company is simultaneously rolling out its first plug-in hybrid for India — the Sealion 6, which combines a Blade battery with a combustion engine for a combined range of about 1,000 kilometres — and preparing to launch the Datang luxury SUV on June 17, followed by a new flagship sedan, likely named the “Great Han”.

The domestic picture, however, is starkly different. May home-market deliveries fell 24% from a year earlier to 222,809 units, even as China’s overall electric-vehicle market expanded 12% to 1.36 million vehicles. BYD is losing domestic market share at a time when it needs scale to offset a 55.4% plunge in first-quarter net profit. Total sales for the first five months of the year came to 1.405 million units, more than 20% below the same period in 2024. Export growth has not yet closed the gap.

Those headwinds set the stage for today’s shareholder votes. The board is seeking authority to issue up to 20% of the current H-share float — roughly 737 million new shares — and to raise as much as 50 billion renminbi through debt instruments, including corporate bonds, short-term notes and convertible bonds. An additional guarantee framework of up to 150 billion renminbi would back subsidiaries and affiliates. For existing holders, the combined effect is a potential dilution of 20% or more and a significant expansion of balance-sheet leverage.

To soften the blow, the AGM is also expected to approve a final dividend of 0.358 renminbi per share, worth about 3.26 billion renminbi in total. The ex-dividend date is set for the same day as the meeting — June 11 — with the book closing between June 15 and 18 and payment scheduled by the end of July. Non-resident corporate investors will face a 10% withholding tax; retail investors under the Southbound Stock Connect programme will be taxed at 20%, while foreign individual holders are temporarily exempt.

The agenda pits two opposing narratives against each other: a vigorous export boom that is geographically reshaping BYD’s sales base, and capital-raising moves that test investor patience. With the stock trading at €9.77 and the next technical support at €9.51, the outcome of today’s vote — and the company’s strategy for navigating the Pentagon ban without losing access to its biggest export market — will determine whether the bears tighten their grip or a recovery takes hold.