AutoBeta(AutoBeta.net)12/18 Report--

According to the data of Sky Eye Inspection, Chery Automobile Co., Ltd., the operating entity of Chery Automobile, has changed. Among them, Qian Zheng, Du Changkang, Zhou Biren, Li Feng and other 29 senior executives collectively withdrew, while 10 new management layers were added, including Zhou Jiannan, Yan Chen, Lin Longhua, Zhang Jinsong, Xia Feng, Zhou Jianmin, Chen Xiang, etc. In addition, the registered capital of Chery Automobile Co., Ltd. increased from about 4.46 billion yuan to 5.47 billion yuan, an increase of 22.73%.

In order to solve the debt and operation problems, Chery introduces new investors by means of capital increase and share expansion, and the new investors will also become Chery's largest shareholder. On December 4, Chery officially announced that Qingdao Wudaokou New Energy Automobile Industry Fund Enterprise (limited partnership) invested 14.449 billion yuan in total, holding 51% equity of Chery Holdings and Chery Automobile respectively, becoming the largest shareholder of Chery Holdings and Chery Automobile.

According to the data, Chery Automobile Co., Ltd. was established in January 1997, with Yin Tongyue as its legal representative. Its business scope includes production and sales of automobile products, production and sales of engines, etc. Before capital increase and share expansion, Anhui Province Credit Guarantee Group Co., Ltd. was its largest shareholder, holding 31.56%; Wuhu City Construction Investment Co., Ltd. was its second largest shareholder, holding 21.73%. After capital increase and share expansion, Qingdao Wudaokou became the largest shareholder, holding 51% equity of Chery Holdings and Chery Automobile, realizing mixed reform of state-owned enterprises.

According to information introduction, Qingdao Wudaokou was established in August 2019. It is the fund main body specially set up to participate in Chery capital increase and share expansion project. Its largest shareholder is Beijing Wudaokou Investment Fund Management Co., Ltd., and its main business scope is investment management, asset management, investment consulting, economic and trade consulting and enterprise management consulting.

According to the capital increase announcement, the funds raised will repay the liabilities and daily operations of the company. According to the data, in the first half of this year, Chery Holdings 'net profit was-156 million yuan, total liabilities 68.51 billion yuan; Chery Automobile's net profit was-1.374 billion yuan, total liabilities 62.294 billion yuan.

It is worth mentioning that although the debt is relatively high, but in recent months Chery car sales have improved. According to the data of the Association, Chery Automobile sold 62142 vehicles in November, up 17.4% year-on-year, and accumulated sales volume from January to November was 527580 vehicles, up 11% year-on-year. Among them, Ruihu 8 is the main sales force of Chery Automobile. The sales volume in November was 13549 vehicles, with a year-on-year growth of 78.6%. The cumulative sales volume from January to November was 102444 vehicles, down 152.7% year-on-year.

After the completion of capital increase and share expansion, Chery Holdings and Chery Automobile will be restructured. With the change of major shareholders and management, the decision-making power of Chery Automobile will also change. Some analysts said that compared with the way bank loans repay debts, the way of capital increase and share expansion will reduce risks and pressures, but the placement of new investors will dilute Chery's management, but this is inevitable.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat