BYD's stock price has once again brushed a new high, the market value has stood at the trillion mark, and the company's shareholders have made a lot of money, of which BYD's two "nobles" Lu Xiangyang and Xia Zuoquan have made nearly 60,000 times more.
On June 13, Biya's stock price once again hit a record high, rising nearly 3% intraday, and the market value stood at the trillion mark.
For many "Di fans", this is undoubtedly a moment of historical significance, BYD's market value is only one step away from "Ning Wang", and the pattern of "double king division" of the new energy track has begun to take shape.
While investors cheered for BYD, the capital behind it also made a lot of money. Among them, the company's earliest batch of angel investors Lu Xiangyang and Xia Zuoquan made tens of thousands of times more.
BYD's continuous growth has created the huge wealth of these two shareholders, and in turn, the help of Lu Xiangyang and Xia Zuoquan 20 years ago has also achieved today's BYD.
BYD's "nobleman" who made 60,000 times more
In 1994, at the age of 28, Wang Chuanfu gave up his original stable and comfortable job and resolutely decided to resign from the research institute to pursue his "battery dream".
However, Wang Chuanfu, who was born in the cold door, could be described as "poor and white" at that time, and could not get the huge funds needed to establish the company at all, and just when he was at a loss, Wang Chuanfu's cousin and wang Chuanfu's biggest nobleman Lu Xiangyang appeared.
At the beginning of hearing that Wang Chuanfu wanted to resign from the "iron rice bowl" of the research institute to start his own business, Lu Xiangyang was actually opposed, but Wang Chuanfu insisted: "I am a researcher of batteries, and I also have management experience in battery companies. As for the market, you can not trust my judgment, but you should believe in the potential of the battery industry. ”
In the end, Lu Xiangyang decided to use the savings of 2.5 million yuan from his early years to start a business in the sea to help Wang Chuanfu start a business. It should be known that in the mid-1990s, the house price in Shanghai was only 3,000 square meters, and 2.5 million yuan was undoubtedly a huge amount of money at that time.
For Lu Xiangyang at that time, taking out such a huge amount of money to help his cousin start a company was tantamount to a "big gamble", in addition to the blood bondage, it was more of a recognition of Wang Chuanfu's unique vision.
If Lu Xiangyang's original intention of investing was a little out of the consideration of family affection, then for Xia Zuoquan, investing in Wang Chuanfu was completely based on trust.
Unlike Lu Xiangyang, who made his fortune in the industry, Xia Zuoquan began to invest in securities in the early 1990s and earned his first pot of gold.
Perhaps smelling the crisis, Xia Zuoquan chose to retreat from the rapids, withdraw from the secondary market, and invested 10% of the shares with 300,000 yuan, becoming one of the three founders of BYD.
Although 300,000 yuan was not as generous as Lu Xiangyang's hand, it was also a huge amount of money at that time. As for the reason for investing in BYD, Lu Xiangyang once said in an interview, "It is Wang Chuanfu who has something that Xia Zuoquan cannot explain today: a sense of trust." ”
With the full help of the two, in 1995, the future lithium battery and new energy vehicle giant BYD was born. From the perspective of the rearview mirror, lu Xiangyang and Xia Zuoquan's investment is undoubtedly very successful and forward-looking.
At the beginning of the company's establishment, Wang Chuanfu and more than 20 employees in a dilapidated workshop in Shenzhen Liantang constantly groped for the business experience of the battery industry, when three shifts were the norm, many workers lived directly in the workshop after work, and continued to work after waking up.
Under such day-to-day efforts, BYD's development speed is amazing. Wang Chuanfu himself once sighed, "We once thought about being big, but we didn't expect to be so big." ”
The company's performance also ushered in explosive growth, and in 2002 successfully landed on the Hong Kong Stock Exchange, when the market value of BYD equity in the hands of Lv Xiangyang and Xia Zuoquan had exceeded 100 million.
However, the two did not choose to sell at a profit, but firmly held, until 2021, Xia Zuoquan began to reduce his shares in BYD company, which has become an investment myth that people now say "60,000 times in 17 years".
According to BYD's latest shareholder data, Lv Xiangyang is the third largest shareholder, holding 8.22%; its Rongjie Investment Holding Group, holding 5.32%; Xia Zuoquan is the sixth largest shareholder of the company with a shareholding ratio of 2.84%.
Based on BYD's latest stock price of 351.58 yuan per share, the market value of BYD's equity held by Lv Xiangyang and Xia Zuoquan is 135.4 billion yuan and 28.4 billion yuan respectively, which is nearly 58,500 times more than the investment cost of 2.8 million yuan for the two of them.
In the 17 years from 1995 to 2022, BYD's stock price has been volatile. In 2009, BYD's stock price rose more than 10 times; As a result, in 2011, the company's stock price plummeted by 90%.
If you are not optimistic about BYD's future development from the bottom of your heart and recognize Wang Chuanfu, you can't firmly hold it. In the past 17 years, Wang Chuanfu has helped BYD complete its "transformation" through time and again accurate industrial layout, which has become the biggest source of confidence for these two shareholders.
What did "Di Wang" do right?
At the beginning of its establishment, BYD's main business was the production and sales of rechargeable batteries. At that time, the battery market was still the world of Japanese companies, and although BYD occupied a place in the nickel-cadmium battery market with its low cost advantages, it still could not make the company bigger and stronger by virtue of this alone.
After two years of dormancy, in 1997, the company ushered in a turnaround, and a financial storm that swept Southeast Asia broke this pattern. At that time, Japanese battery manufacturers were generally on the verge of loss, but BYD became more and more comfortable in the market with its low-cost advantage.
After a large number of competitors withdrew, the "cake" that did not belong to BYD became within easy reach, and with low prices, BYD harvested nearly 40% of the global nickel-cadmium battery market share in three years, becoming the boss of the nickel-cadmium battery market.
In 1999, BYD developed the industry's leading SC2100P high-current discharge battery, and the output of nickel-cadmium batteries reached 150 million in that year; in 2000, BYD became Motorola's first Chinese lithium-ion battery supplier, becoming the leader in China's mobile phone battery industry at that time.
After reaching the top, Wang Chuanfu did not burn out, on the contrary, he saw that the market space of nickel-cadmium batteries could not continue to support BYD's growth, and began to turn the gun head into automobile manufacturing.
In 2003, BYD acquired Xi'an Qinchuan Automobile Co., Ltd. for 296 million yuan, established BYD Automobile Co., Ltd., and announced that BYD would be the largest electric vehicle enterprise in China.
Wang Chuanfu has publicly said, "When I found out that BYD also had a market opportunity to make cars, I rushed up too slowly, and I wanted to pounce." ”
It should be known that in 2003, in the era when the automobile could not be popularized to every household, Wang Chuanfu had already smelled the business opportunities of new energy vehicles, and the "poisonous spicy" of the vision could be seen.
Not to mention, shortly after Wang Chuanfu chose to focus on the manufacture of complete vehicles, nickel-cadmium batteries began to decline. It can be said that Wang Chuanfu has done a perfect job in the selection of entry and withdrawal time nodes in nickel-cadmium batteries, and the development of the company cannot be so smooth one step or one step earlier.
However, in the era of fuel vehicles at that time, bydir's electric vehicles thrown across the sky could not be understood by investors at the time, and after Wang Chuanfu released his bold words, the company's stock price plummeted from HK$18 to HK$14, and BYD's market value evaporated by nearly HK$2.7 billion in two days.
But it turns out that BYD can indeed build cars, the company in the automotive field to replicate the successful case in the field of batteries, with a high degree of division of labor production methods to counterattack international and domestic joint venture car manufacturers, and refresh the Highest monthly sales record of Chinese brand cars, the record has not been broken.
For a long time to come, BYD's automobile business has also become the main contribution to its revenue, compared with the performance of the company's new energy vehicle business.
Although BYD has laid out new energy vehicles for a long time and won the global new energy vehicle sales champion in 2015-2018. However, for a long time, BYD's car sales force is still fuel vehicles, and from 2018 to 2020, BYD's new energy vehicles account for about 41%-49% of total sales.
However, this situation has been reversed after 2020, according to the company's 2021 financial report data, the proportion of the company's fuel vehicle business fell to 18.5%, and by the first quarter of 2022, the proportion of fuel vehicles was only 1.7%.
It is worth noting that on April 3, BYD officially announced the suspension of fuel vehicle production, becoming the first car company in the world to officially announce the suspension of production of fuel vehicles, which also means that BYD "all in" new energy vehicles.
This is undoubtedly a major change for BYD and a big gamble. However, now it seems that Wang Chuanfu is right again. According to public data, in May, BYD's new energy passenger car sales 114183, an increase of 152.8% year-on-year, hitting a record high while firmly ranking the throne of sales no1.
Along with the rise in sales, the company's stock price has risen by 49.87%, recovering all the declines in the year and setting a record high, and has been crowned by investors as "Di Wang".
However, although BYD has been "crowned king", the company's future is still challenging.
New energy vehicle melee, BYD's "challenge"
Such challenges come from peer competition on the one hand, and from tight supply chains on the other.
Industry insiders said that the current domestic new energy vehicle market, has not yet formed a stable competitive pattern, in addition to Tesla, other car companies still lack core technical advantages, on the whole is still in a state of complete melee.
Not only the familiar "Wei Xiaoli", but also the mavericks who make electric vehicles, and even Apple's super foundry Lixun and Foxconn have joined this scuffle.
And in the course of the melee, there will definitely be latecomers who will join in and try to get past. The transformation of traditional car companies takes some time, and some car companies in the new forces have continued to follow up, coupled with the uncertainty of the technical route, how many companies will develop in the future is still inconclusive.
On the other hand, BYD's comprehensive suspension of fuel vehicles is more like a domino that accelerates the comprehensive transformation of the fuel vehicle industry, and traditional fuel vehicle giants such as Volkswagen and BMW have announced their future new energy vehicle plans.
In the context of multi-party entry, the company not only has to face the positive competition from other car companies on the product side, but also faces other car companies' high salaries and other problems such as grabbing talents, so the company has issued an equity incentive plan with a cost of almost zero on April 23 this year, which will undoubtedly put pressure on the company's cost side.
The company is not only facing the above-mentioned "external troubles", but also the lack of cores, less lithium and other "internal worries" are constantly plaguing the company, which can be seen from the company's financial reports.
According to the company's financial report data, in 2021, BYD's net profit attributable to shareholders of listed companies was 3.045 billion yuan, down 28.08% year-on-year; its net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses fell sharply by 57.53%, only 1.255 billion yuan.
In this regard, industry insiders said that the rising price of lithium battery raw materials led by lithium salts since last year is the main reason for the decline in the company's gross profit.
This article originated from Global Tiger Finance