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In the face of the sudden impact of COVID-19, it must have a great impact on all kinds of industries. As a new energy vehicle company, BYD Automobile is particularly difficult in the declining new energy vehicle market, so that there is some "negative" news.

Recently, a picture of BYD's internal "announcement of the results of the review of matters related to the Shenzhen housing provident fund affected by the epidemic" (hereinafter referred to as "publicity") was circulated on the Internet.

According to the content, due to the continuing impact of the COVID-19 epidemic, BYD will decide to suspend its contribution to the Shenzhen housing provident fund from April 2020 to June 2020 (units and individuals will stop paying), and restore the proportion of deposit according to the policy from July 2020.

If you stop paying employees' housing provident fund from April to March, it will undoubtedly have a certain impact on some employees who are under pressure on loans. after all, BYD is "in" Shenzhen, where house prices are higher. However, it is worth noting that it is also mentioned in the picture that BYD is also implemented in accordance with the relevant policies of the Shenzhen Municipal Government on the payment of housing provident funds affected by the epidemic.

According to Article 3 of the "measures taken by Shenzhen to deal with the pneumonia epidemic infected by novel coronavirus to support enterprises to tide over the difficulties together", the relevant enterprises may postpone the payment of social insurance premiums in accordance with the law. If the employer is unable to pay the enterprise social security fee on time due to the impact of the epidemic, it may be postponed to pay the fee within 3 months after the end of the epidemic, and no late fee shall be charged during the period.

And Article 4, can reduce the proportion of enterprise housing provident fund deposit. For enterprises affected by the epidemic and having difficulties in depositing the housing provident fund, they may apply according to law to reduce the deposit proportion of the housing provident fund to at least 3%, within a period of no more than 12 months, or to apply for hold-over payment of the housing provident fund for a period of no more than 12 months.

At the same time, the above situation has also been confirmed by BYD and said that the suspension of monthly provident fund, the company will be paid in the follow-up, there is no impact on employees.

In fact, before the impact of the epidemic, BYD cars began to be affected by the decline of subsidies in the new energy market last year, and sales continued to decline. BYD's new energy vehicles still rose 95 per cent year-on-year in the first half of 2019, but sales have fallen sharply since the decline in government subsidies in July, resulting in full-year sales of 223000 new energy vehicles, down 7.4 per cent from a year earlier.

According to the 2019 financial report, BYD's annual revenue was 127.739 billion yuan, down 1.78% from the same period last year; the net profit belonging to shareholders of listed companies was 1.612 billion yuan, down 42.03% from the same period last year, and BYD's profit margin for the whole year was only 1.32%.

With the impact of the outbreak this year, the impact of the new energy market and BYD has intensified, so that cumulative sales in the first quarter were only 61273, down 47.9% from the same period last year, including 22192 new energy vehicles, down 69.7% from the same period last year.

At the same time, according to BYD's performance forecast for the first quarter, the profit range for the first quarter was 50 million yuan to 150 million yuan, compared with last year's profit of 749.73 million yuan, a year-on-year decrease of 79.99%. 93.33%, which means that BYD's first-quarter profit may drop by nearly 90%.

Of course, in the face of the impact of the epidemic since the Spring Festival, BYD quickly joined the sale of "anti-epidemic equipment". Began to switch to the production of masks and disinfectants, and sold to the outside world, in order to alleviate the current shortage of masks. According to recent foreign media reports, BYD has won nearly 1 billion US dollars in mask orders from California.

But in any case, BYD, as a pillar of the auto industry, in the face of the current difficulties, the conversion of materials such as masks can only play a supplementary role. BYD is not only the representative enterprise of domestic new energy vehicle manufacturing, but also one of the major enterprises in Shenzhen, so it has undoubtedly become one of the main support objects of the government.

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