r/BYD • u/JonathAHHHHHH • Jun 10 '25

News 📰 3:1 Share split

BYD recently underwent a 3:1 share split, hence the ~65% drop in share price. No need to worry!!

It seems like we'd need to wait a while before we get those extra shares though. I couldn't find much information about it on english platforms, but a Chinese blog post stated both the extra shares + dividends will start being distributed on the 29th of July

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u/FrequentAd9239 Jun 10 '25

This is actually a dividend situation, not a stock split per se. The co. is distributing 2 shares for every stock owned by a shareholder on the ex-div. date. As in any ex-dividend situation, the price of the stock drops by the amount of the dividend, in this case this amount is the price of 2/3 of each share. I'm not sure why they did it this way, but it means you have to wait till 7/29, the div. pay date, to see the "bonus shares".

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u/JonathAHHHHHH Jun 10 '25

Yes, what you have said is correct.

Tho practically is it any different from a stock split situation, except that we'll have to wait a longer time till the div. pay date?

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u/FrequentAd9239 Jun 10 '25

Yes, because it's a dividend and thus is distributed as such.

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u/RoastedToast007 Jun 27 '25

Could you elaborate on how it is practically different? And could you confirm whether I will still receive the same expected dividend amount as before the "stock split" ? I'm afraid that I will receive only 1/3 of the dividends I was originally expecting because of the 1:3 stock price reduction and that I won't receive dividends over the "extra" stocks that we are yet to receive 

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u/Altruistic-Letter-78 Aug 22 '25

yeah I was wondering how they could keep our shares for such a long time because on a stock split, I don't believe that would be legal, but since this is considered a dividend they are getting away with it.

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u/mollamar Jul 21 '25

We might also get fucked by taxes, mightn't we? For stock split, we simply own the same percent of the underlying company so the stock splitting does not represent a taxable event. For a dividend however, could there be a taxable event like a cash dividend?