Under Hong Kong Stock Exchange rules, when an organization's shareholding in a Hong Kong-listed company drops to less than 5 percent, it can no longer continue to disclose its holdings.
Berkshire Hathaway, managed by legendary US investor Warren Buffett, has further sold off its stake in BYD, bringing it down to a level where it can no longer continue to disclose.
Berkshire reduced its holdings in BYD H-shares on July 16, dropping its stake from 5.06 percent to 4.94 percent, according to a Hong Kong Stock Exchange filing today.
The company reduced its holdings in BYD by 1,395,500 shares at an average price of HK$246.96 in its latest move, cashing out HK$344 million ($44 million).
Under Hong Kong Stock Exchange rules, when an organization's shareholding in a Hong Kong-listed company drops below 5 percent, it can no longer continue to disclose its holdings.
This means that the latest disclosure is likely to be the last time Berkshire discloses its position in BYD on the Hong Kong Stock Exchange.
On September 29, 2008, Berkshire Hathaway Energy, which Berkshire holds a 91.1 percent stake in, spent $230 million to buy 225 million shares of BYD at a price of HK$8 per share.
Berkshire's holdings in BYD had not changed since then until 2022.
On August 24, 2022, Berkshire sold 1.33 million BYD shares traded in Hong Kong, bringing the stake from 20.04 percent to 19.92 percent, the first reduction since Buffett bought BYD shares.
BYD has become the world's largest new energy vehicle (NEV) maker after seeing rapid sales growth over the past two years.
The company sold 1,612,983 NEVs in the first half of 2024, up 28.46 percent year-on-year.
BYD sold 203,404 units overseas in the first half of the year, up 173.80 percent.
($1 = HK$ 7.8078)
JP Morgan expects BYD to reach 6 million global deliveries by 2026
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