BYD ELECTRONIC (00285.HK): Unit Subscribes CMB Wealth Products; Aggregated Deals Form a Discloseable Transaction

NewTimeSpace News: On 23 October 2026, BYD Electronic (International) Company Limited (the "Company") announced that BYD Precision, a wholly-owned subsidiary of the Company, subscribed for various short-term wealth management products offered by CMB Wealth Management on 31 March 2026, 24 April 2026 and 25 June 2026 for treasury management purposes, so as to utilise the Group's idle cash more efficiently.

The announcement disclosed that the products comprise: two tranches of CMB Wealth Management fixed-income pure bond products with a minimum holding period of seven days subscribed on 31 March 2026, each with a performance benchmark of 1.44% to 2.24% and a principal of RMB 1 billion, with expected maturity dates of 24 April 2026 and 8 May 2026; a fixed-income pure bond product with a minimum holding period of 14 days subscribed on 24 April 2026, with a performance benchmark of 1.20% to 2.20%, a principal of RMB 2 billion and an expected maturity date of 26 May 2026; two fixed-income pure bond daily-open products subscribed on the same day, each with a performance benchmark of 1.30% to 1.70%, a principal of RMB 1 billion and expected maturity dates of 24 June 2026 and 22 May 2026; and three products subscribed on 25 June 2026 with an aggregate principal of RMB 3,494,699,436, comprising a fixed-income pure bond product with a minimum holding period of seven days (performance benchmark 1.47% to 2.17%, expected maturity 21 August 2026), a fixed-income pure bond product with a minimum holding period of 30 days (benchmark: demand deposit rate x 10% plus seven-day deposit rate x 65% plus ChinaBond New Composite Index (0-1 year) x 25%, expected maturity 24 August 2026) and a fixed-income pure bond product with a minimum holding period of seven days (benchmark: demand deposit rate x 5% plus seven-day deposit rate x 95%, expected maturity 21 August 2026).

The Company stated that the investment portfolios of all the above products comprise fixed-income instruments covering money market instruments, standardised debt instruments and other fixed-income financial assets, and that all are non-principal-protected floating-return products with relatively low risk (R2). Under the Listing Rules, when calculated individually, the percentage ratios for the products subscribed by the Group on 24 April 2026 and 25 June 2026 exceed 5% but none exceeds 25%; in addition, as the products subscribed on 31 March 2026 and 24 April 2026 were offered by the same financial institution (namely CMB Wealth Management) and had overlapping holding periods, they must be aggregated under Rules 14.22 and 14.23, and when aggregated with other wealth management products purchased from the same financial institution and still held by the Group at the relevant time, the highest applicable percentage ratio for the 24 April 2026 subscription exceeds 5% while all aggregated ratios do not exceed 25%, so the subscriptions constitute a discloseable transaction of the Company subject to the reporting and announcement requirements under Chapter 14 but exempt from the shareholders' approval requirement.

The Company stated that, as at 31 December 2025, the Group's cash and cash equivalents were approximately RMB 13.6 billion; as at 30 June 2026, cash and cash equivalents were approximately RMB 5.5 billion, while cash reserves (comprising cash and cash equivalents, monetary funds and financial assets held for trading, including funds used to subscribe for the wealth management products) were approximately RMB 13.9 billion. CMB Wealth Management is a bank wealth management subsidiary wholly owned by China Merchants Bank Co., Ltd. (listed on the Shanghai Stock Exchange, stock code 600015), and it and its ultimate beneficial owners are independent third parties of the Company. The board considers that the products are short-term in nature (with minimum terms ranging from 1 day to about 14 days), carry a relatively low risk rating (R2, low to medium risk), invest mainly in PRC fixed-income instruments and have performance benchmarks of about 1.2% to 2.24%, consistent with prevailing market interest rates, and that the subscriptions for treasury management purposes were made in the ordinary and usual course of the Group's business and are in the interests of the Company and its shareholders as a whole. The announcement also stated that the Company has issued an internal memorandum to all relevant departments and subsidiaries clarifying that subscription for wealth management products may constitute a discloseable transaction under the Listing Rules and requires prior approval and compliance review, and will enhance its existing internal control and compliance review procedures, including through an annual treasury plan.