BYD Banks on 1,500 kW Chargers and Record Exports as Domestic Sales Plunge 24% Ahead of Shareholder Meeting

BYD posted a record 160,000 exports in May (+80% YoY) while domestic sales fell 24% for the 13th month. AGM proposes 150B RMB guarantees for global expansion and a Sinopec charging partnership.

The numbers coming out of BYD are telling two starkly different stories. Overseas, the Shenzhen-based automaker just posted its highest-ever monthly export tally, with more than 160,000 vehicles shipped in May — a surge of 80 percent year-on-year. At home, the picture is grimmer: domestic sales fell 24 percent, marking the thirteenth consecutive monthly decline. This schism forms the backdrop to Tuesday’s annual general meeting in Shenzhen, where shareholders face decisions that will shape the company’s trajectory through what CEO Wang Chuanfu has described as a brutal “knockout phase” in the Chinese market.

Ahead of the AGM, the board has proposed a final dividend of 0.358 renminbi per share, with the ex-dividend date set for June 11. More consequential, however, is a plan to secure guarantees of up to 150 billion renminbi for the company’s global subsidiaries. The move is designed to unlock credit lines across BYD’s expanding international network, giving management the financial flexibility to sustain its aggressive overseas push even as the domestic front bleeds.

That push got a further boost this week with a strategic infrastructure deal. On June 3, BYD and state-owned oil giant Sinopec signed a framework agreement to roll out ultra-fast charging stations across Sinopec’s sprawling network of roughly 30,000 fuel stations. BYD currently operates 6,100 of its “Flash Charging” stations and aims to hit 20,000 by year-end. The charging piles will deliver up to 1,500 kW per connector — claimed to be the highest power output for a single-plug series unit in the world. Beyond hardware, the partnership also envisions integrating customer loyalty systems and supply chains.

For all the noise around exports and infrastructure, the stock has shown little enthusiasm. BYD shares closed at €9.84 in Frankfurt on Friday, down 2.5 percent on the day and nearly 10 percent below their 50-day moving average. The stock is hovering close to its 52-week low, having shed roughly 79 percent from its peak. The gap to the year’s trough is a wafer-thin 3.5 percent. Analysts, however, remain overwhelmingly bullish: the consensus rating is “Strong Buy,” with a Hong Kong price target averaging around 124 Hong Kong dollars, implying substantial upside from current levels.

The disconnect between market sentiment and analyst optimism reflects deeper financial strains. In the first quarter, BYD’s net profit collapsed 55 percent as revenue shrank nearly 12 percent. The relentless price war in China has compressed margins on each vehicle sold, and new software upgrades have failed to reignite demand in the budget segments. For the full year, management still targets up to 5.5 million vehicle sales, but having delivered only 1.41 million in the first five months, the pace must accelerate dramatically.

The export channel provides the clearest path toward that target. The overseas segment now accounts for 42 percent of total sales, a share that has doubled as domestic demand stalled. May’s total sales of roughly 383,000 vehicles marked the first year-on-year increase in nine months, albeit a meager 0.3 percent gain — a lifeline thrown entirely by foreign markets.

Wang Chuanfu’s “knockout phase” warning underscores the stakes. At Tuesday’s meeting, he must convince shareholders that the export machine can outrun the domestic price war, that the Sinopec charging deal is a long-term moat rather than a distraction, and that the 150 billion renminbi guarantee package is a sign of strength, not desperation. The next milestones are already on the calendar: the charging network expansion by year-end, and the push to hit 5.5 million units in a market that shows no sign of letting up.