BYD’s Dividend Arrives Amid a 28% Rally — But Turkey and Residual Values Cast a Shadow
Published on 07/30/2026 at 16:21 | Redaktion boerse-global.de
BYD shareholders are set to receive a cash payout on Friday, with the Chinese electric-vehicle and battery giant distributing its final dividend for the 2025 financial year. The HK$0.41141-per-share payment — equivalent to RMB 0.358 after conversion — lands in the middle of a powerful recovery that has lifted the stock by 28.36% over the past 30 trading sessions. The shares changed hands at €10.47 on Thursday, up 1.14% from the prior close.
The dividend, approved at the company’s annual general meeting in June, carries a distinct tax treatment depending on the investor’s domicile. Foreign institutional holders of H-shares face a 10% Chinese corporate withholding tax, while mainland investors using the Southbound Stock Connect channel must pay 20% income tax. Private foreign investors, however, remain exempt from Chinese income tax on this particular distribution — a quirk that produces markedly different net yields across investor groups.
A Rally Fueled by Operational Milestones
The recent surge in BYD’s share price has been underpinned by a stream of positive operating news. The company is working through bulging order books following the launch of its ultrafast-charging technology and a wave of new models, prompting an aggressive expansion of production capacity. In July, BYD rolled out its 17-millionth new-energy vehicle — a global record for any automaker, according to the company. First-half 2026 sales exceeded 1.8 million units, with more than 780,000 of those delivered outside China.
The financials for 2025 underscore the scale of the operation: revenue of RMB 804 billion, net profit of RMB 32.6 billion, and research-and-development spending of RMB 63.4 billion. Overseas sales surged 145% last year to over one million vehicles, and BYD now operates in 121 countries. The company also secured a place in the Fortune Global 500 for the fifth consecutive year, ranking 91st.
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Europe’s Breakneck Growth and Its Hidden Costs
Nowhere has BYD’s expansion been more dramatic than in Europe. EV sales there jumped roughly 270% in 2025 and another 156% year-on-year in the first quarter of 2026. In Germany, the company’s share of retail sales climbed from 12.4% in 2025 to 32.5% between January and April 2026. Unlike legacy automakers, BYD finances its vehicles through European banks and leasing partners rather than a captive finance arm.
But the European push comes with warning lights flashing. Industry analyst Matthias Schmidt notes that of the 30,472 BYD vehicles registered in Germany since December 2022, only 18,536 are still on the road — a gap that suggests some registrations may have been made for balance-sheet purposes. Stefan Bratzel of the Center of Automotive Management cautions that BYD is gaining market share at the expense of margin, and that residual values remain the central risk for financiers. In the UK, by contrast, BYD has crossed the 100,000-registration mark just three years after its March 2023 launch, with 37,995 new registrations in the first half of 2026 alone and a dealer network that has mushroomed from five to 143 locations.
Turkey Troubles and a Home-Field Regulatory Win
The Turkish market tells a very different story. A World Trade Organization panel recently ruled that Ankara’s additional 40% import tariff on Chinese EVs — introduced in June 2024 and later replaced with a 30% surcharge or a minimum of $8,500 per vehicle — violated trade rules. BYD’s planned billion-dollar investment in a Manisa plant with 150,000 units of annual capacity remains frozen, and Turkey suspended its incentive commitments to the company in January 2026. The result: first-half 2026 sales in Turkey collapsed 73.3% to 6,809 vehicles, down from 25,501 in the same period last year.
Back in China, BYD scored a regulatory victory on Tuesday when it received safety-management certification for the country’s upcoming mandatory L2 driver-assistance standard, GB 47955-2026, which takes effect in January 2027. The company says its God’s Eye system exceeds the standard’s minimum requirements. BYD was among the automakers — including Xiaomi, Tesla, and NIO — that helped draft the regulation. L2 penetration among new cars in China already stands at 70% in 2026.
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A Malaysian Refresh and a Still-Distant Peak
On the product front, BYD’s Malaysian unit teased a camouflaged version of the Sealion 7 electric SUV on social media ahead of an official unveiling scheduled for July 30 — the same day as the dividend payout. The refreshed model is expected to feature a larger 91.3-kWh LFP blade battery, the same unit used in European versions, offering a WLTP-rated range of 502 kilometres. The relaunch is part of a broader effort to defend BYD’s Southeast Asian market position against intensifying competition.
Despite the recent rally, the stock remains well below its highs. At €10.47, it trades nearly 24% below the summer 2025 peak of €13.74 and roughly 23% lower than a year ago. For investors, the picture is increasingly two-sided: operational momentum — record production, full order books, and rapid European growth — provides ample justification for the recent run-up. But the Turkish tariff dispute, questions about German registration practices, and the ongoing debate over residual values serve as reminders that BYD’s global expansion is not without political and financial friction.
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