Recently, 1958.HK issued a notice saying that BAIC, a subsidiary of the company, has signed an amendment agreement with Hyundai Motor. Accordingly, BAIC and Hyundai Motor agreed to increase the capital of Beijing Hyundai by about 942 million US dollars (about 5.992 billion yuan) according to their proportion of the current registered capital of Beijing Hyundai, and the two sides injected about 471 million US dollars respectively.
The announcement shows that after the capital increase is completed, Beijing Hyundai's registered capital will increase to about 2.979 billion US dollars (about 18.949 billion yuan), while BAIC's shareholding ratio with Hyundai Motor will remain unchanged, accounting for 50 per cent.
Beijing Automobile said that the capital increase will not only enable Beijing Hyundai to respond more effectively to further investment needs in the face of the electrification of China's auto industry, but also continue to strengthen the safety of Beijing Hyundai's capital operation. At the same time, through this capital increase, Beijing Hyundai can comprehensively improve the level of operating capital, and will further increase strategic resource investment in cooperation with shareholders, so as to improve the operating conditions of its own enterprises and continuously enhance China's auto market position. In addition, this capital increase will also provide a strong financial guarantee for Beijing Hyundai's business such as introducing new products, increasing the layout of new energy vehicles, and expanding exports.
Data show that Beijing Hyundai was established on October 18, 2002. it is the first Sino-foreign joint venture project in the field of automobile production approved after China's accession to the WTO. China and South Korea each account for 50%, and the duration of the joint venture is 30 years.
Beijing Hyundai has five factories in China with a total production capacity of 1.65 million vehicles. Among them, after the first factory in Beijing was resold to ideal cars, there are still two factories in Beijing, one in Chongqing and one in Cangzhou.
According to current car plans, Hyundai and Genisse, a luxury brand of Hyundai, plan to sell 1.87 million electric vehicles worldwide by 2030, accounting for 7 per cent of the total. At the same time, on this basis, Hyundai Motor will ensure that the operating profit margin of the relevant departments of electric vehicles will reach more than 10% by 2030.
At the same time, Hyundai plans to invest a total of 95.5 trillion won in electric transformation during the nine-year period from 2022 to 2030.
