BYD and Daimler each increased their capital by 1 billion yuan to Denza Automobile, and each held 50% of the equity after the completion of the capital increase

Blue Whale Automobile on December 24, BYD issued an announcement that the holding subsidiary BYD Automobile Industry and Daimler intend to increase the capital of Shenzhen Denza New Energy Automobile Co., Ltd. by 1 billion yuan in monetary terms according to the proportion of shareholding. After the completion of the capital increase of the shareholders of both parties, BYD Automobile Industry and Daimler will continue to hold 50% of the equity of Denza New Energy respectively.

The announcement shows that the Denza brand is positioned as a high-end new energy vehicle. The capital increase is mainly used for the daily operating funds of Denza New Energy, which is conducive to promoting the sustainable development of Denza's new energy vehicle business and providing financial support for Denza New Energy to create better and more competitive products. In the future, both shareholders will strategically plan to accelerate the future development of the "Denza" brand in the fast-growing Chinese new energy vehicle market and tap the growth opportunities of the Denza brand.

According to public information, Denza Automobile was founded in 2011 as a joint venture between BYD and Daimler of Germany, and is China's first Sino-foreign joint venture focusing on new energy vehicles, headquartered in Shenzhen. The legal person is Hubertus TROSKA, vice chairman and director of Beijing Benz. Wang Chuanfu, president of BYD, and Lian Yubo, vice president of BYD, both serve as directors of Denza New Energy.

As of November this year, Denza New Energy's total assets were RMB2.11 billion and net assets were RMB340 million, and from January to November 2021, Denza New Energy's operating income was RMB1.15 billion and net profit was RMB -150 million.