BYD subsidiary BYD Electronic has reached an agreement with Jabil Circuit, a manufacturer of mobile phone components. Accordingly, the conglomerate takes over two production plants in China, in which, among other things, parts for Apple are manufactured.
• BYD subsidiary takes over production from Jabil Circuit
• Plants in Chengdu and Wuxi will continue to operate
• Withdrawal from China
The Chinese conglomerate BYD has made a name for itself in recent years as an e-car manufacturer and Tesla competitor. The Group is also represented in numerous other sectors. The subsidiary BYD Electronic has dedicated itself to the manufacture of components and modules for mobile phones.
BYD Electronic acquires manufacturing business from Jabil Circuit
As the news agency “Bloomberg” now reports, the branch of the company has now taken over the production business of Jabil Circuit. BYD had let the deal cost 15.8 billion yuan, which corresponds to about 2.2 billion US dollars. The acquisition also includes the continued operation of the plants in Chengdu, China and Wuxi, China.
Manufacture of components for Apple
According to Bloomberg, it was contractually agreed that BYD Electronic would continue to produce parts for Jabil’s existing customers. These include the NASDAQ group Apple. The agency writes that the components will be installed in the Cupertino, California-based company’s iPhones and iPads. But the components should also be found in Dell computers.
Withdrawal from the Chinese market – share buybacks planned
However, in the context of geopolitical tensions, the US contract manufacturer seems to be increasingly withdrawing from China. Jabil Circuit is one of the largest pavers in the People’s Republic. Tens of thousands of workers are currently employed in the Chinese provinces of Sichuan, Guangdong and Jiangsu, mainly to manufacture parts for Apple. With the sale to the BYD subsidiary, however, Jabil now hopes to improve the “shareholder-oriented capital framework,” as Bloomberg quoted the company from a statement. Share buybacks should also be made possible by the cash injection.
BYD increases profit significantly
The Chinese electric car manufacturer BYD has given investors a look at its books. The Chinese automaker reported gross profit of 47.673 billion renminbi yuan, or $1.5 billion, in the first half of 2023. The company was thus 134.36 percent above the same period last year. Earnings per share were 3.77 renminbi yuan, up 204.03 percent from the first half of 2022. Revenue was 260.12 billion renminbi yuan.
The Tesla competitor had already announced its delivery figures for the past quarter in July. BYD delivered around 383,000 purely battery-powered cars in the second quarter. The Chinese car manufacturer was able to hand over a total of 703,561 vehicles to customers.
Here’s how BYD and Jabil Circuit stocks are reacting
BYD shareholders took the news well: In Hong Kong, the parent company’s shares ultimately gained 0.72 percent to 225.20 Hong Kong dollars. And Jabil Circuit shares also gained 7.81 percent in trading on the NYSE at times to $111.28.
Editorial office finanzen.net
Selected leveraged products on Apple Inc.
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the desired lever and we will show you suitable open-end products on Apple Inc.
Leverage must be between 2 and 20