logo
China's Chery, BYD may have to repay subsidies after audit finds irregularities

China's Chery, BYD may have to repay subsidies after audit finds irregularities

Yahoo3 days ago
SHANGHAI/BEIJING (Reuters) -China's Chery and BYD improperly claimed a combined $53 million in government subsidies for eco-friendly vehicles sold in the five years to 2020, accounting for nearly 60% of improper claims, an industry ministry audit found.
The audit documents did not lay out any penalties or mention reimbursement, but the government has previously said automakers will have to repay subsidies for vehicles found not to have met mileage requirements.
The audit found 21,725 vehicles should not have received subsidies that totalled 864.9 million yuan ($121 million), documents published by the Ministry of Industry and Information Technology last month showed.
Chery had 7,663 vehicles disqualified while BYD had 4,973.
The ministry, Chery and BYD did not reply to requests for comment.
Repaying subsidies has the potential to exacerbate pain for China's automakers as the industry grapples with excess capacity and the fallout from a prolonged and fierce price war that has hit profitability and set dealers and suppliers at odds with manufacturers.
China's top leaders have pledged to increase regulation of pricing and support the orderly phasing out of outdated production capacity, state media reported this month.
China provided generous subsidies for new energy vehicles between 2009 and 2022 to promote the adoption of electric, plug-in hybrid, and fuel cell vehicles.
That worked and sales of such vehicles began surpassing gasoline-powered car sales on a monthly basis since March.
The ministry report collated audits by local governments, which are now doing more audits for 2021 and 2022.
($1 = 7.1766 Chinese yuan)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

D-Wave Quantum (QBTS) Loses 11.8% as 2 Tech Giants Could Threaten its Competitive Edge
D-Wave Quantum (QBTS) Loses 11.8% as 2 Tech Giants Could Threaten its Competitive Edge

Yahoo

time20 minutes ago

  • Yahoo

D-Wave Quantum (QBTS) Loses 11.8% as 2 Tech Giants Could Threaten its Competitive Edge

D-Wave Quantum Inc. (NYSE:QBTS) is one of the D-Wave dropped its share prices by 11.8 percent week-on-week as investors unloaded positions over fears that the aggressive expansion moves of two technology giants into the quantum computing industry could threaten its competitive edge. This is after the International Business Machines (IBM) recently announced its Starling quantum computer, which it expects to perform 20,000x better than today's quantum computers and is targeted to be fully operational by 2029. Meanwhile, Google developed in December last year its state-of-the-art quantum chip called Willow, which could reduce errors exponentially and perform a standard benchmark computation in under five minutes that would take one of today's fastest supercomputers 10 septillion years. A modern computer datacenter, running an advanced quantum computer system. In contrast, D-Wave Quantum Inc. (NYSE:QBTS) unveiled its Advantage2, which is able to solve problems beyond the capabilities of a classical GPU-based supercomputer through optimization, materials simulation, and artificial intelligence (AI). According to Forbes contributor Peter Cohan, while D-Wave Quantum Inc.'s (NYSE:QBTS) niche use cases are growing, its ability to scale may fall short as IBM and Google push deeper into enterprise markets. While we acknowledge the potential of QBTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Velan Inc (VLNSF) Q1 2026 Earnings Call Highlights: Strong Sales Growth and Strategic Dividends ...
Velan Inc (VLNSF) Q1 2026 Earnings Call Highlights: Strong Sales Growth and Strategic Dividends ...

Yahoo

time31 minutes ago

  • Yahoo

Velan Inc (VLNSF) Q1 2026 Earnings Call Highlights: Strong Sales Growth and Strategic Dividends ...

Release Date: July 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Velan Inc (VLNSF) reported an 18.6% year-over-year increase in sales, reaching $72.2 million, driven by higher shipments from Italian operations and increased business volumes in China, India, and Germany. The company achieved a gross profit margin increase of 100 basis points to 28.6%, reflecting a favorable product mix and lower material costs. Velan Inc (VLNSF) has a strong cash position, exceeding $59 million, the highest level in five years, providing a financial cushion for strategic growth and shareholder returns. The board approved a significant increase in the quarterly dividend from 3 Canadian cents to 10 Canadian cents per share, indicating confidence in future financial performance. The order backlog grew by 4.1% to $286.1 million, with a high margin profile benefiting from large long-term contracts in the nuclear and defense sectors. Bookings declined to $78.2 million from $83 million a year ago, attributed to lower year-over-year bookings in Germany and North America. The company recorded restructuring expenses of $5.4 million, including $6.1 million in transaction-related costs. Cash flow from operating activities was negative, with $15.5 million used in the first quarter, primarily due to unfavorable changes in non-working capital items. North American sales remained relatively stable, with lower shipments to the defense industry offset by stronger MRO activity. The regional revenue split shifted away from Europe following the sale of French assets, potentially impacting future sales distribution. Warning! GuruFocus has detected 4 Warning Signs with VLNSF. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Q: Is the recent uptick in MRO activity mostly in North America, or is it expected to grow in other regions as well? A: (Jim Moaback, CEO) Most of the MRO activity increase was in North America during the quarter. However, we are starting to see growth in Europe and the Middle East, partly due to our joint venture in Saudi Arabia, which is helping secure more work in that region. Q: Customer deposits seem to fluctuate more than bookings. Is this due to the sales mix or industry-specific factors? A: (Rishi Sharma, CFO) The fluctuations are more industry-specific. Long-term contracts in nuclear and defense sectors typically have more substantial advances compared to standard projects or MRO activities. Q: Could the slower bookings in North America be attributed to recent turmoil such as tariffs or the trade war? A: (Jim Moaback, CEO) Yes, the ongoing tariff situation in the U.S. is affecting customer decisions, causing some delays in projects and MRO activities. However, there is also a shift towards sourcing products from North America instead of China due to tariff concerns. Q: Is the special committee, which was involved in the French asset sale, still active? A: (Jim Moaback, CEO) The special committee, composed of independent directors, is still operational. Their role is to evaluate strategic options for the company and advise the board, ensuring the best outcomes for stakeholders. Q: How does being a preferred supplier for GH SMR BWRX 300 projects work, especially with local supplier preferences in places like the UK? A: (Jim Moaback, CEO) While we are a preferred supplier, each contract is subject to bidding and qualification. Our proprietary technology gives us an advantage, but we still need to compete for each project. We maintain relationships with major global suppliers, including Rolls-Royce, to hedge our bets in the nuclear sector. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.

Xi Wants to End China's Price Wars. But How?
Xi Wants to End China's Price Wars. But How?

Bloomberg

time39 minutes ago

  • Bloomberg

Xi Wants to End China's Price Wars. But How?

Inside China, price wars are far more dangerous than US tariffs. As President Xi Jinping starts to address the country's ultra-competitive business culture, the trillion-dollar question is how — and whether he can succeed. Race-to-the-bottom mentality is everywhere. The world's biggest EV maker BYD Co. slashed prices by as much as 34% in May, exacerbating a decline in auto prices that began in late 2022. A turf war in the food-delivery market has e-commerce giants Alibaba Group Holding Ltd. and Inc. offering splashy discounts to take on sector leader Meituan. Hong Kong's stock market, where these blue chips are listed, has lost momentum as a result.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store