On the evening of December 24, BYD (002594. SZ) announced that its holding subsidiary, BYD Automotive Industry Co., Ltd. (hereinafter referred to as "BYD Automotive Industry") and Daimler Greater China Investment Co., Ltd. (hereinafter referred to as "Daimler"), respectively, will increase the capital of Shenzhen Denza New Energy Automobile Co., Ltd. (hereinafter referred to as "Denza New Energy" or "the Associated Person") by RMB 1 billion in monetary terms (hereinafter referred to as "the Capital Increase") in proportion to their 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.
It is worth mentioning that red star capital bureau learned from BYD today that BYD and Daimler signed an equity transfer agreement on adjusting depressive new energy structure, and intend to complete the equity transfer of both parties in Denza.
Upon completion of the transfer, BYD and Daimler will hold 90% and 10% of Denza's shares, respectively. The matter is subject to the approval of the relevant regulatory authorities and is scheduled to be completed by mid-2022. BYD will give Denza greater support in operations to promote its future success. At the same time, Daimler will continue to support depressive development as a shareholder.
According to the data of Tianyancha APP, Shenzhen Denza New Energy Automobile Co., Ltd. was registered on February 16, 2011. BYD and Daimler each hold 50% stakes. After the establishment of the company, the shareholders have injected capital into it many times. The most recent was in January this year, and its registered capital increased from 5.06 billion yuan to 5.76 billion yuan. Total investment increased from RMB6.56 billion to RMB7.16 billion.
As of December 31, 2020, Denza New Energy's total assets were RMB2.39 billion and net assets were RMB490 million; its main revenue from January to December 2020 was RMB1.13 billion and its net profit was -RMB420 million (data audited); as of November 30, 2021, 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 -1.5 billions (data unaudited).
According to the official website of Denza, there are currently two models of Denza X plug-in hybrid and pure electric on sale. Red Star Capital Bureau has learned that the Denza brand will launch new models in the Chinese market in 2022.
BYD said that the "Denza" brand positions high-end new energy vehicles. 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.
Red Star News reporter Wu Danruo
Edited by Yang Cheng
(Download Red Star News, there are prizes for the newspaper!) ）
![After four capital increases, Daimler transferred 40% of Denza's equity to BYD[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)