AutoBeta(AutoBeta.net)09/06 Report--

Chery plans to introduce a mixed reform project of new investors by increasing capital and shares, and the new capital has finally surfaced. It is reported that Tengxing Yangtze River Delta (Haining) equity investment partnership (limited partnership) (hereinafter referred to as "Tengxing Yangtze River Delta") has reached an agreement with Chery holding Group Co., Ltd. (hereinafter referred to as "Chery Holdings") and Chery Automobile Co., Ltd. (hereinafter referred to as "Chery shares"), and paid a deposit of 4.7 billion yuan, which is expected to become the largest shareholder of Chery Automobile.

If the transaction is completed, Tengxing Yangtze River Delta will become the largest shareholder of Chery Holdings, with a shareholding ratio of 30.99%. Through Chery Holdings, it will acquire a total of 28.555% of Chery shares, and will become the largest shareholder of both Chery Holdings and Chery shares.

Qixinbao information shows that Tengxing Yangtze River Delta only registered on July 22 this year, a total of 10 shareholders.

Chery Automobile Co., Ltd., a state-owned holding enterprise engaged in automobile production, was registered on January 8, 1997, with a registered capital of 4.1 billion yuan, headquartered in Wuhu City, Anhui Province. The largest shareholder is Wuhu Construction Investment Co., Ltd., after the completion of capital increase and share expansion, the proportion of shares held by Wuhu Construction Investment will drop from the current 40.1084% to 27.68%.

This is also the second time that Chery has launched a capital increase and share expansion project. Previously, due to various reasons, the project did not carry out perfectly, leaving a lot of regret in the hearts of the "Qirui people". Compared with the previous round, due to the impact of the downward environment of the car market, the price requirements have been lowered. Down from 16.2 billion to 14.3 billion.

On September 2, Chery Automobile Co., Ltd. and Chery holding Group Co., Ltd. issued a pre-announcement of capital increase and share expansion. The two sides will introduce the same investor. The same investor will subscribe for 1.921192892 billion yuan of new registered capital of Chery Holdings and 1.012931633 billion new shares of Chery shares with cash contributions, with a total actual contribution of 14.35 billion yuan.

The purpose of this round of fund-raising will continue to be to repay debts as well as existing business, new business development and day-to-day operations.

As of June 30, 2019, Chery Holdings has total assets of 90.4175179 billion yuan and liabilities of 68.5082975 billion yuan, while Chery shares have total assets of 83.0821771 billion yuan and liabilities of 622,293,6623 million yuan.

At present, the announcement does not disclose data such as short-term current liabilities payable, and Chery does not disclose 2018 annual financial data on platforms such as China Monetary Network.

For most of the year since 2008, Chery's main business has been losing money and barely made a positive profit through government subsidies. According to the latest half-yearly report, Chery sold a total of 325000 cars from January to June, of which 285000 were self-branded models, an increase of 8.5% over the same period last year.

Some people in the industry believe that although Chery introduces new investors, Chery will still take the lead in the company.

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