3 6 Ke·2025-06-13 12:24Core Viewpoint - The discussion around BYD's "Di Chain" has intensified, particularly in light of concerns regarding the company's high debt levels and payment terms, which have drawn comparisons to the troubled Evergrande Group [2][22]. Group 1: Debt and Payment Terms - BYD's debt ratio is reported to be 70% with total liabilities reaching 584.66 billion [2]. - BYD's average turnover days are 127, comparable to Geely, and lower than other competitors like SAIC and Great Wall [2]. - Following public scrutiny, multiple car manufacturers, including BYD, committed to a payment term of no more than 60 days, highlighting regulatory concerns about extended payment periods harming the automotive industry [2][26]. Group 2: Di Chain Overview - "Di Chain" is an electronic debt certificate provided by BYD to its suppliers, functioning similarly to a promissory note but lacking the legal protections of traditional commercial bills [3][5]. - Suppliers can hold Di Chain until maturity for cash or use it as a debt instrument for financing [3][5]. Group 3: Financial Implications - Di Chain serves as a supply chain financial tool that can help alleviate cash flow issues for small and medium-sized enterprises (SMEs) while generating revenue for banks [5][6]. - Some banks offer financing against Di Chain, providing a 50% discount rate and charging a 3% annual interest rate for loans secured by Di Chain [6]. Group 4: Supplier Challenges - Suppliers face pressure to accept Di Chain, especially smaller ones with less negotiating power, leading to extended payment timelines [7][9]. - The payment cycle can exceed 6 months, significantly impacting suppliers' cash flow and operational capabilities [9][11]. - Di Chain can create a cascading effect where risks are transferred down the supply chain, further entrenching smaller suppliers in a cycle of dependency [11][12]. Group 5: Regulatory and Market Context - The scale of Di Chain issuance is substantial, with reports indicating over 400 billion in cumulative issuance, raising concerns about liquidity and potential risks if suppliers demand cash simultaneously [22][24]. - Compared to other automotive companies, BYD's issuance volume is significantly higher, which could pose systemic risks [22][23]. - The automotive industry is facing a common challenge regarding supply chain financing, necessitating regulatory oversight to ensure sustainable growth [25][26].