Changan New Energy increased its capital and shares to obtain nearly 5 billion yuan of financing and sought listing on the Science and Technology Innovation Board

Yangtze River Business Daily reporter Li Qiguang

After experiencing the termination of the capital increase in 2019, Changan New Energy finalized a new round of financing.

On the evening of January 18, Changan Automobile (000625.SZ) issued an announcement that the company's joint venture Changan New Energy increased its capital and shares in the Shanghai United Property Rights Exchange to introduce investors by public listing, and the investors have been identified.

The capital increase raised a total of about 4.977 billion yuan, Changan Automobile intends to increase the capital of 1.36 billion yuan, after the completion of the capital increase, the company's shareholding ratio was diluted from 48.95% to 40.66%.

Changan Automobile said that through this round of capital increase and share expansion, the implementation of core employee shareholding is conducive to enhancing the vitality of Changan New Energy development and helping to build an industry-leading leader in digital electric vehicles.

Earlier, Changan Automobile executives revealed at the shareholders' meeting that Changan New Energy plans to list on the Science and Technology Innovation Board.

Changan Automobile's shareholding diluted to 40.66%

On the evening of January 18, Changan Automobile issued an announcement that Chongqing Changan New Energy Automobile Technology Co., Ltd. (hereinafter referred to as "Changan New Energy"), an associate of the company, has increased its capital and expanded its shares in the Shanghai United Property Rights Exchange to introduce investors, and investors have been identified.

After the completion of the capital increase, Changan Automobile's shareholding ratio was diluted from 48.95% to 40.66%, still the largest shareholder, and Changan New Energy is still an associate of the company, and continues to use the equity method for accounting. The transaction is expected to increase the company's capital reserve by about 657 million yuan and has no impact on the company's profit or loss.

Changan New Energy, formerly a wholly-owned subsidiary of Changan Automobile, introduced Nanjing Runke, Chongqing Changxin, Liangjiang Chengwei and Nanfang Investment through the A round of financing in December 2019, raising a total of about 2.84 billion yuan, increasing its registered capital from 99 million yuan to about 202 million yuan, completing the mixed reform target of equity diversification.

In this round of capital increase, Changan New Energy intends to increase the registered capital of about 126 million yuan, that is, from 202 million yuan to about 328 million yuan.

thereinto Changan Automobile intends to increase its capital by 1.36 billion yuan (giving up the right to increase capital in the same proportion), Southern Industrial Asset Management Co., Ltd. intends to increase its capital by 710 million yuan, BOCOM Boyu No. 1 (Suzhou) Debt-to-Equity Swap Investment Fund (Limited Partnership) intends to increase its capital by 1 billion yuan, Chongqing Chengyuan Private Equity Investment Fund Partnership (Limited Partnership) intends to increase its capital by 700 million yuan, Wuhu Xinshi Xinhong Equity Investment Partnership (Limited Partnership) intends to increase its capital by 500 million yuan, Chongqing Zhongjin Keyuan Private Equity Investment Fund Partnership (Limited Partnership) intends to increase its capital by 200 million yuan, and Chongqing Southern Industrial Equity Investment Fund Partnership (Limited Partnership) intends to increase its capital by 180 million yuan Chongqing Xindong Weilai No. 4 Enterprise Management Consulting Partnership (Limited Partnership) intends to increase its capital by 117 million yuan, Southern Industrial Intelligent Travel Investment (Tianjin) Partnership (Limited Partnership) intends to increase its capital by 110 million yuan, and Zhuhai Deqing Mixed Reform No. 2 Equity Investment Partnership (Limited Partnership) intends to increase its capital by 100 million yuan.

After the completion of the capital increase, Changan Automobile holds 40.66% of the shares, Southern Assets holds 5.47%, Boyu No. 1 of boyu no. 1 holds 7.71%, Chengyuan Fund holds 5.40%, Wuhu Xinshi Xinhong holds 3.85%, the shareholding ratio of Southern Industrial Fund increases from 1.80% to 2.50%, CICC Keyuan Fund holds 1.54%, employee shareholding platform holds 0.90%, Southern Industrial Intelligent Travel Fund holds 0.85%, and Deqing Mixed Reform No. 2 Fund holds 0.77%.

At the same time, Chongqing Changxin Equity Investment Fund Partnership (Limited Partnership) did not participate in the capital increase, and the shareholding ratio was diluted from 17.97% to 11.08%; Nanjing Runke Industrial Investment Co., Ltd. did not participate in the capital increase, and the shareholding ratio was diluted from 17.97% to 11.08%; Chongqing Liangjiang New Area Undertaken equity Investment Fund Partnership (Limited Partnership) did not participate in the capital increase, and the shareholding ratio was diluted from 13.30% to 8.20%.

As Nanfang Assets is a wholly-owned subsidiary of China North Industries Equipment Group Co., Ltd., the actual controller of Changan Automobile, the transaction constitutes a related party transaction.

Changan New Energy's value-added rate reached 384.24%

In fact, the new energy business is an important part of Changan Automobile's "Third Innovation and Entrepreneurship Plan".

After the release of the new energy strategy "Shangri-La Plan" in 2017, Changan Automobile integrated new energy business resources and established Chongqing Changan New Energy Automobile Technology Co., Ltd. in 2018 to provide organizational and human resources guarantee for the development of Changan Automobile in the field of new energy.

In October 2018, Changan New Energy was publicly listed on the Shanghai United Assets and Equity Exchange to increase its capital.

In June 2019, Changan Automobile applied to suspend the termination of the capital increase due to "disagreements with investors".

After the release of the 2021 new energy strategy "Shangri-La Plan", Changan Automobile integrated the new energy business resources, established Changan New Energy in 2021, and renamed the high-end brand Changan Weilai to Avita Technology in August of the same year.

On November 5, 2021, Avita Technology officially announced the successful completion of the first round of strategic financing, with Changan Automobile holding 39.02%, NINGDE Times Consortium holding 28.99%, Chongqing Liangjiang Fund Consortium holding 20.88%, Southern Asset Consortium holding 9.97%, and Shanghai Weilai Automobile Co., Ltd. holding 1.14%.

At present, Changan New Energy is still in a loss. According to the data, from 2020 to the first three quarters of 2021, the company achieved operating income of 2.272 billion yuan and 3.454 billion yuan, and net profit of -1.227 billion yuan and -1.595 billion yuan, respectively.

As of the end of September 2021, Changan New Energy had total assets of 6.358 billion yuan and net assets of 540 million yuan.

According to the relevant appraisal report, the book value of all shareholders' equity under the caliber of Changan New Energy's parent company is about 1.651 billion yuan, and the appraisal value of all shareholders' equity is about 7.995 billion yuan, with an appreciation amount of 6.344 billion yuan and an appreciation rate of 384.24%.

Changan Automobile believes that with the acceleration of the transformation and upgrading of the automotive industry and the automobile consumer market to intelligent new energy vehicles, market competitors have poured in, market competition has become increasingly fierce, and the penetration rate of new energy vehicles has continued to increase, which is an important direction for the future automobile market. Under the new pattern, the company must accelerate the diversified financing development of Changan New Energy and accelerate the establishment of a market-oriented competition mechanism, and the sustained and efficient development of Changan New Energy will have a positive impact on the company's business development, which is in line with the long-term strategic goal of Changan Passenger Vehicle Transformation to New Energy.

Changan Automobile also said that through this round of capital increase and share expansion, it is conducive to enhancing Changan's new energy development capabilities and establishing a more market-oriented operating mechanism. At the same time, through this round of financing, the implementation of core employee shareholding is conducive to enhancing the vitality of Changan New Energy development and helping to build an industry-leading leader in digital electric vehicles.

It is understood that Changan New Energy's IPO plan is initially scheduled to be launched in 2023 after the business of the target company matures, and then it will start overseas IPO listing, or the listed company will exchange shares to absorb mergers. In May 2021, Changan Automobile executives revealed at the shareholders' meeting that Changan New Energy plans to list on the Science and Technology Innovation Board.

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