BYD Company Limited, HKG:1211, which is backed by Warren Buffett, said it plans to sell up to six billion yuan (US$938.8 million) in bonds to repay loans and boost its coffers.

The announcement comes after BYD reported this week that first-half net profit slumped 89 percent on year to 275.4 million yuan due to stiff competition and the cancellation of government subsidies for car purchases.

The company stocks fell significantly but the bond offering may be a bonus for investors, BYD will replace debt at much lower rates and have cheap cash for continued expansion.

BYD seen explosive growth from 2005 to 2009, the company last year expected to continue the momentum and double its sales to 800,000 units, but eventually wrapped up the year with 520,000 cars delivered.

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.