BYD’s Supply Chain Financing Masks Ballooning Debt, GMT Says
- Chinese EV maker’s net debt may be closer to $44 billion: GMT
- Suppliers have had their own accounts queried by exchanges
BYD Co. took an average 275 days to pay suppliers in 2023.
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BYD Co.’s reliance on financing from working capital has masked surging debt levels at the Chinese electric vehicle giant, according to calculations from Hong Kong-based GMT Research.
While it’s common for fast-growing firms to use debt to fuel expansion, BYD appears “addicted” to supply chain financing, GMT, an accounting consultancy that previously raised the alarm about China Evergrande Group, said.