chairman Wang Chuanfu doubled the amount of his proposed buyback of the company's shares in the A-share market to RMB 400 million from RMB 200 million and will be used to reduce registered capital.

BYD (OTCMKTS: BYDDF) chairman and president Wang Chuanfu doubled the amount of his proposed buyback of the company's shares traded on China's A-share market, after an initial offer late last year failed to stem a slump in the stock price.

BYD (SHE: 002594) received a new letter from Wang on February 22, in which he proposed that the company increase the amount of its share buyback to RMB 400 million ($55.6 million) from RMB 200 million previously and use it to reduce registered capital, according to the company's exchange announcement today.

Wang proposed on December 6, 2023 that BYD buyback shares traded in Shenzhen for a total amount of RMB 200 million, and that the repurchased shares would be used for an employee share ownership plan, a share incentive plan, or to reduce registered capital, according to a previous announcement.

BYD hasn't announced any progress on the share buyback since Wang's initial proposal was announced.

BYD's shares have fallen 7 percent since December 6 last year, while the Shanghai Composite Index has gained about 1 percent and the Shenzhen Composite Index has fallen 4 percent over the same period.

Wang's latest proposal is based on his confidence in the prospects of the new energy industry and the company's future development, as well as his recognition of the company's value, according to BYD's announcement today.

This is aimed at better safeguarding the interests of all shareholders of the company, enhancing investor confidence, and stabilizing and enhancing the company's value, BYD said.

Wang's proposed share repurchase method is to be carried out by centralized bidding transactions, and the upper limit of the price of the repurchased shares is not higher than 150 percent of the average trading price of the company's shares in the 30 trading days before the board of directors adopts the repurchase plan.

The source of funds for this repurchase will be the company's own funds, and the repurchase period will be within 12 months from the date of the company's shareholders' general meeting considering and approving the share repurchase program.

BYD saw strong sales growth in 2023, selling 3,024,417 NEVs for the year, up 62.3 percent year-on-year.

However, its Shenzhen-traded shares fell 23 percent for the full year 2023, amid China's macroeconomic challenges. The Shanghai Composite Index fell 3.7 percent while the Shenzhen Composite Index lost 13.5 percent in 2023.

In January, BYD sold 201,493 NEVs, up 33.14 percent year-on-year but down 40.92 percent from December, as seasonal factors impacted nearly all major Chinese automakers.

($1 = RMB 7.1959)

BYD chairman proposes RMB 200 million in share buybacks