Denza Automobile is a joint venture jointly established by Bydir, a leading enterprise in China's new energy vehicles, and Daimler, Germany, a luxury car manufacturing giant in the world, founded in 2010, which is also the first joint venture car enterprise in China to account for 50:50 equity, which also breaks the play of joint venture car companies being controlled by foreign parties, at the beginning of the establishment, Mercedes-Benz and BYD want to make up for their shortcomings through joint ventures, BYD provides new energy vehicle technology, Daimler leads product design, BYD learns enterprise management from Daimler, Daimler can also use Denza to balance carbon credits, but the development of the Denza brand behind the two mountains is not good, and sales have been sluggish since its establishment, as of December 31, 2020, Denza New Energy's total assets were 2.39 billion yuan and net assets were 490 million yuan; the main revenue from January to December 2020 was 1.13 billion yuan, and the net profit was -420 million yuan.
According to byd bydir's announcement on December 24, BYD Automotive Industry Co., Ltd. (hereinafter referred to as "BYD Automotive Industry") and Daimler Greater China Investment Co., Ltd. (hereinafter referred to as "Daimler") intend to increase the capital of Denza New Energy by 1 billion yuan in monetary terms according to the proportion of shareholding, and BYD Automobile Industry and Daimler will continue to hold 50% of the equity of Denza New Energy respectively. Previously, BYD and Daimler have carried out several rounds of capital increases for the Denza brand.
At the same time, on the day of the announcement, BYD and Daimler jointly announced that the two sides signed an equity transfer agreement to complete the equity transfer of the two parties in Denza. Daimler said that after the signing of the agreement, Mercedes-Benz's stake in Denza will be reduced to 10%, and BYD will also acquire 40% of mercedes-Benz's shares, after which BYD will own 90% of the denza brand. The agreement involving the restructuring of the Denza brand, the redividing of the two parties' shareholding in the Denza brand, and the adjustment of the sales channels of the models.
In recent years, BYD has continuously launched a number of high-quality new energy models, and the denza brand jointly invested by the two sides has only one Denza X model on sale [currently sold in the Mercedes-Benz channel], and the Denza brand returns to BYD after the equity adjustment, as for after-sales and channels, Daimler also confirmed that "it will also return to BYD management." However, the two sides will continue to promote the business development of the Denza brand, because Daimler and BYD have gained valuable experience in China's high-end new energy vehicle market.
Denza's future development will be led by BYD, as BYD said before, electric is the first half, intelligent is the second half, it can be seen that DENZA will get more advantageous resources and core technologies after BYD holdings, Denza will increase the competitiveness of intelligence, but also increase BYD's weight in the high-end electric vehicle market, the return of the Denza brand will also greatly enhance the STRENGTH of the BYD brand and the competitiveness of the model, it is reported that Denza will also launch more new models in 2022, which will also end the Denza brand 1+ The dilemma of 1 not more than 2...