On May 28th, BYD announced that Xia Zuoquan, the major shareholder, planned to reduce the holding of BYD shares by no more than120,000 shares. According to the share price of that day, Xia Zuoquan's return on investment has exceeded 50,000 times.
According to the parent fund weekly, at the end of 1994, Xia Zuoquan, who made his first bucket of gold through the secondary market, came to Shenzhen and was introduced to Wang Chuanfu.
At that time, Wang Chuanfu had accumulated a certain strength in the field of batteries and needed to create his own entity company. From 65438 to 0995, Xia Zuoquan contributed 300,000 yuan to help Wang Chuanfu set up BYD Battery Company.
However, Xia Zuoquan did not participate in the day-to-day operation of BYD. It was not until 200 1 that Xia Zuoquan stepped onto the stage and became the executive director of BYD. By the end of May this year, Xia Zuoquan's shareholding in BYD had reached 3.3 1%.
This means that, according to the latest closing price, all the shares of BYD held by Xia Zuoquan have exceeded 20 billion yuan. 300,000 for 20 billion, Xia Zuoquan's return on investment has surpassed Buffett's.
This time, the reduction of BYD has made Xia Zuoquan a god in the investment circle. Throughout his investment career, Xia Zuoquan is undoubtedly a believer in science and technology investment.
As Xia Zuoquan once said at the annual summit of equity investment in China, science and technology investment is the main way to enjoy the new round of domestic science and technology dividend, and "it is also a key step to make up for the lack of core science and technology in China".
Xia Zuoquan's investment in BYD undoubtedly confirms this point.
According to Investor, in the past 26 years, Xia Zuoquan has not only contributed capital, but also assisted Wang Chuanfu's later enterprises many times, helping BYD seize opportunities again and again and turn the tables against the wind.
200 1 After taking charge of BYD's daily operation, Xia Zuoquan led BYD to start the journey of building cars through repeated acquisitions, and later successfully cut into the new energy car track.
Today, BYD is the number one player in China New Energy Circuit. From the self-developed power battery to the self-developed vehicle chip, BYD's many technological innovations have helped it form a closed-loop business, and at the same time filled the domestic gap.
After Xia Zuoquan's multiple reductions, the industry began to worry that this would have an impact on BYD's daily operations. However, according to BYD's announcement, Xia Zuoquan's reduction plan will not change the company's control and will not affect the company's continuing operation.
According to Xia Zuoquan, the repeated reduction is not to cash out, but to solve the capital problem of Zheng Xuan's investment. In 2003, Xia Zuoquan founded Zheng Xuan Investment Company, focusing on high-tech investment.
In addition to BYD, Zheng Xuan also invested in unicorn enterprises such as intelligent robot developer Ubisoft and Core Energy Semiconductor. Official website shows that the average return on investment of Zheng Xuan exceeds 10 times.
Xia Zuoquan has been advising enterprises to complete the construction of technical barriers before investors enter the market. After all, for today's science and technology enterprises, mastering the core technology is the greatest competitiveness.
Xia Zuoquan said that he would not reduce his shareholding in BYD for three years and was "full of confidence in the company's development prospects". It remains to be seen whether BYD, which stands at a new starting point, can achieve new heights.
Text/Yu