Changan New Energy will increase its capital by nearly 5 billion yuan or the last financing before IPO.

On the evening of January 18, Changan Automobile announced that Changan New Energy, an associate of the company, had publicly listed on the Shanghai United property Exchange to increase its capital and shares to introduce investors, and the investor had been identified.

According to the announcement, Changan New Energy raised a total of about 4.977 billion yuan, and it is proposed to increase the registered capital by about 126 million yuan, that is, from 202 million yuan to about 328 million yuan. Among the top five capital increase parties, Changan Automobile plans to increase capital by 1.36 billion yuan (giving up the right to increase capital by the same proportion), Boyu No. 1 of Bank of Communications plans to increase capital by 1 billion yuan, Southern assets plans to increase capital by 710 million yuan, Chengyuan Fund plans to increase capital by 700 million yuan, and Wuhu Xinshi Xinhong plans to increase capital by 500 million yuan.

After the completion of this capital increase, the shareholding proportion of Changan Automobile has been diluted from 48.95% to 40.66%, Boyu No. 1 of Bank of Communications holds 7.71%, Southern assets holds 5.47%, Chengyuan Fund holds 5.40%, Wuhu Xinshi Xinhong holds 3.85%, Southern Industrial Fund holds 1.80% to 2.50%, CICC Keyuan Fund holds 1.54%, employee shareholding platform holds 0.90%. The Southern Industrial Intelligent Travel Fund holds 0.85% of the shares, while the German Rocket mixed Reform II Fund holds 0.77%.

In addition, Chongqing Changxin, Nanjing Runke and Liangjiang Cheng, which participated in the A round of capital increase, did not participate in this round of capital increase, and their share ratios were diluted from 17.97% to 11.08%, from 17.97% to 11.08%, and from 13.30% to 8.20%, respectively.

In December 2019, Changan New Energy introduced Nanjing Runke, Chongqing Changxin, Liangjiang Chengwei and Southern assets through round A financing, raising a total of about 2.84 billion yuan, increasing its registered capital from 99 million yuan to about 202 million yuan. At the same time, Changan Automobile's equity share was diluted from 100% to 48.95%, thus Changan New Energy achieved the goal of equity diversification.

According to the previous capital increase announcement, the funds raised in this round will be mainly used for R & D investment in pure electric platforms and new cars, new marketing system and channel construction promotion investment, three power field and intelligent R & D investment, smart driving and intelligent ecological construction investment, and including but not limited to supplementary operating funds and debt repayment.

Financial data show that by the end of September 2021, Changan New Energy had total assets of 6.358 billion yuan and net assets of 540 million yuan; operating income of 3.454 billion yuan and net profit of-1.595 billion yuan in the first three quarters of 2021.

In the face of the new situation of continuous improvement in the penetration of new energy vehicles and the influx of market competitors, Changan Automobile said that this round of financing will help to enhance the development capacity of new energy in Changan and establish a more market-oriented operation mechanism. At the same time, through this round of financing, the implementation of core employee stock ownership will help to enhance the vitality of Changan new energy development and help to create a leading digital electric vehicle leader in the industry.

As an important part of Changan Automobile's "third Innovation and Entrepreneurship Plan", Changan Automobile sold 76466 new energy vehicles in 2021, of which Changan Mercedes-Benz EV sold 76381. According to the plan, Changan New Energy will launch more than 20 new pure electric models within five years, and the sales of Changan brand new energy vehicles will exceed 1 million in 2025.

It should be pointed out that this capital increase is regarded as the landing of Chang'an New Energy B round financing. On October 30, 2021, Changan Automobile announced that Changan New Energy plans to introduce a number of investors through public listing to increase capital and shares, and the total amount of funds to be raised will not exceed 5 billion yuan. At that time, a Changan automobile insider revealed: "this is the B round financing of Changan New Energy." And this round B financing or Changan New Energy IPO before the last financing.

Previously, Changan New Energy said in a tender announcement, "plans to select securities companies as the company's financial advisers, responsible for studying and promoting the implementation of plans related to joint-stock reform, round B financing and IPO listing." According to the plan, Changan New Energy is initially scheduled to launch overseas IPO listing or stock exchange of listed companies to absorb and merge after the business of the target company matures in 2023. Changan New Energy plans to be listed in Science and Technology Innovation Board, Changan Automobile executives revealed at the shareholders' meeting in May 2021.