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In early September this year, Chery's mixed reform was launched again, intending to introduce new investors in the way of capital increase and share expansion, which also made Chery more and more popular in the auto industry.

According to the announcement, the project will end on November 7. so far, two interested parties (private placement) have paid 5 billion yuan in intention funds. they are Tengxing Yangtze River Delta (Haining) equity investment partnership (limited partnership) (hereinafter referred to as "Tengxing Yangtze River Delta") and Qingdao Wudaokou New Energy Automobile Industry Fund (limited partnership) (hereinafter referred to as "Qingdao Wudaokou"). According to Chery insiders, the new investor is likely to be Tengxing Yangtze River Delta.

From the rumored investor is an "unknown" small company, to now the "gossip protagonist" Tengxing Yangtze River Delta has a lot of connection.

Tengxing Yangtze River Delta is a new company that has been established for nearly two months. The registration time is July 22 this year, with a total of 10 shareholders. The largest shareholder is Haining Asset Management Company, with a shareholding ratio of 38.1605%. The second largest shareholder is Yueqing Nanshang Investment Co., Ltd., with a shareholding ratio of 19.5695%. Shanghai Resheng Industrial Co., Ltd., Xinlian Tongda (Beijing) Information Services Co., Ltd., Shanghai Jiaying Liusheng Investment Co., Ltd., and Haining Jianshan New area Development Co., Ltd., respectively hold 9.7847%. In addition, there are some shareholders with smaller shareholdings. Most of the relevant information is vacant.

In response, some auto analysts said, "from this point of view, Chery may have worked out the basic information with investors before, so it registered this new company."

On September 6 this year, Chery signed a contract with Stuttgart, a subsidiary of Deutsche Post, to set up an electric light commercial vehicle joint venture. The two sides plan to invest 500 million euros to develop and produce electric logistics vehicles in China. It is planned to build a factory with an annual production capacity of 100000 vehicles, as well as an electric vehicle research and development center.

Chery insiders revealed that the joint venture between Chery and Deutsche Post is likely to be located in Haining, which is also a condition of the deal.

During this period, the media interviewed the relevant personnel in charge of Haining Asset Management Company, learned that Haining has a local plan to develop new energy vehicles, and is optimistic about the ability and prospects of Chery new energy vehicles.

On September 8 this year, Yin Tongyue, chairman of Chery Automobile, appeared in Haining to meet with relevant local government leaders.

According to Qixinbao information, the suspected controller in the Tengxing Yangtze River Delta is the State-owned assets Supervision and Administration Office of the Haining Municipal people's Government, through Haining Asset Management Company and Haining Jianshan New area Development Co., Ltd., Haining State-owned assets Office actually owns 42.22% of the shares in Tengxing Yangtze River Delta.

In fact, this is not the first time that Haining Asset Management Company has developed a new energy project. In recent years, Haining is looking for a new space for economic development, tapping the new potential of economic development, taking the road of transformation and upgrading, and introducing Haining Automobile New Energy Project of Youth Automobile Group. However, in the end, because the Youth Automobile Group was "in danger", Haining Asset Management Company applied to the court for bankruptcy liquidation of the Youth Automobile Group on the grounds that the Youth Automobile Group Co., Ltd. failed to repay its due debts and clearly lacked the ability to repay.

Chery, in the face of the decline in sales and performance in recent years, led to the group's urgent demand for capital, hoping to find investors quickly. As of June 30, 2019, Chery Holdings had a net profit of-156 million yuan, total assets of 90.4 billion yuan and total liabilities of 68.51 billion yuan, while Chery shares had a net profit of-1.374 billion yuan, total assets of 83.08 billion yuan and total liabilities of 62.294 billion yuan.

No matter for the next stage of development, or to solve the urgent needs of funds, mixed reform is imperative for Chery. "this mixed reform shows that Chery is very determined, and the Wuhu local SASAC has taken a step back to become the second shareholder." analysts believe.

Chery's capital increase announcement shows that the capital will hold 30.99% of the shares, making it the largest shareholder of Chery Holdings.

Judging from the current news, Chery's mixed reform and restart project can also be passed to a large extent, but for Chery, the entry of new investors may make a big change to the management. after all, in the 10 years of rapid growth of the Chinese auto market, Chery has not achieved positive profits and sales are declining. Usually in this case, new investors will not trust the ability of management.

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