Summary of Key Points
Xinhao Optoelectronics plans to acquire 100% of the equity in Yadi New Energy for no more than 950 million yuan (Yadi is a car-hailing platform jointly established by Didi and BYD in 2015). Initially, Yadi served as a cooperative platform that met the respective needs of both parties: BYD used it to sell cars, and Didi utilized it for compliant transportation services. However, both BYD and Didi have now developed new strategies. With BYD's sales volumes soaring, it no longer relies on Yadi for car sales and has established its own mobility brand. Didi, on the other hand, has abandoned its car-making efforts and focused entirely on autonomous driving, making Yadi's capital-intensive model a liability. Xinhao Optoelectronics, which is struggling in its main business of consumer electronics glass and has failed in its transition to photovoltaics, hopes to secure car glass orders by acquiring Yadi. However, the market is skeptical about the risks of this cross-industry move, leading to a significant drop in the company's stock price.
Detailed Analysis
1. Yadi: From a Valued Partner to a Disposed-of Asset in 10 Years
In 2015, with the rise of new energy policies, car-hailing became the ideal application for electric vehicles. BYD needed a stable customer base to absorb its production capacity, and Didi needed a compliant fleet for subsidy-based services. The two companies collaborated to establish Yadi (initially named Didi). Initially, Yadi exclusively used BYD vehicles (e5 and Qin EV models), and later they jointly developed the D1 car-hailing vehicle. The fleet size reached 40,000 units, and Yadi's revenue soared from 183 million yuan to 939 million yuan in 2018, representing a win-win situation for both parties.
However, the situation has changed: BYD now sells 4.6 million vehicles annually and no longer relies on Yadi for car sales. Didi, with its focus on autonomous driving, finds Yadi's 15,000 vehicles to be a burden. Yadi has transformed from a valuable partner into an asset that both companies wish to get rid of.
2. BYD: Shifting from Car Sales to Self-Operated Mobility Services
BYD previously relied on Yadi to sell cars, but with annual sales of 4.6 million vehicles, any mobility platform is eager to purchase its vehicles, eliminating the need for its own car-hailing operations. Moreover, BYD's core strength lies in manufacturing, and entering the mobility services sector is not its forte. More importantly, BYD has launched the "Linghui Automobile" sub-brand, which specializes in car-hailing and taxi services, directly targeting rental companies and platforms, thus making Yadi obsolete.
3. Didi: Moving from Capital-Intensive Transportation to Autonomous Driving
Didi collaborated with BYD on Yadi for both compliance transportation and a secret car-making project (codenamed "Da Vinci"). In 2023, Didi sold its car-making efforts to Xpeng and fully committed to autonomous driving. It has raised over 10 billion yuan in funding and is collaborating with GAC Aion to develop L4-level autonomous taxis, having obtained testing licenses in Beijing and Guangzhou, with plans for mass production by 2027. Autonomous driving is a low-capital-intensive model that does not require maintaining a large number of drivers and vehicles, making Yadi's capital-intensive operations incompatible with Didi's future strategy.
4. Xinhao Optoelectronics' Rescue Strategy: Acquiring Yadi to Secure BYD Orders
Xinhao Optoelectronics, formerly in the mobile phone glass industry (with clients like vivo and OPPO), faced losses in 2024 and failed in its transition to photovoltaics. It has now set its sights on the automotive glass market, where BYD is a major customer. The company's strategy is to acquire Yadi (BYD was once a shareholder) to gain more car glass orders. Xinhao even stated at a performance meeting its intention to "increase investment in automotive glass development," aiming to transition from mobile phone screens to automotive displays. However, it acknowledges the lack of experience in car-hailing operations, making this a risky cross-industry move.
5. Why the Market Disapproves of the Deal?
The market's skepticism is based on several factors:
- Lack of Cross-Industry Experience: Car-hailing is a capital-intensive business that involves managing vehicles, drivers, and operations, which Xinhao Optoelectronics is unacquainted with, as it specializes in glass manufacturing.
- Yadi's Weak Performance: Yadi's revenue and profit growth have slowed down (revenue of 547 million yuan and net profit of 192 million yuan in 2025, compared to rapid growth in 2018).
- Uncertainty about Business Cooperation with BYD: Even if Xinhao acquires Yadi, there is no guarantee of securing BYD orders, given BYD's existing supply chain.
Investors see this as a high-risk gamble, leading to a sharp decline in the company's stock price.
Conclusion
This acquisition is Xinhao Optoelectronics' attempt at self-rescue, but the numerous challenges associated with cross-industry integration have dampened market enthusiasm. The fate of Yadi reflects the broader strategic shifts of BYD and Didi: as the industry evolves, the cooperative platforms established in the past are becoming obsolete.