On December 4, the Yangtze River Equity Exchange announced that the capital increase and share expansion projects of Chery Holding Group Co., Ltd. and Chery Automobile Co., Ltd. were successfully concluded. Qingdao Wudaokou New Energy Automobile Industry Fund Enterprise (Limited Partnership) ("Qingdao Wudaokou") became Chery Holdings, a new shareholder of Chery Automobile. In the context of the current state-owned enterprise reform, the success of Chery’s capital increase and share expansion project is a major breakthrough in the “mixed reform” of state-owned enterprises in the automotive industry. It not only provides wings for the “Chery 2025 Strategy”, but also the courage of Anhui Province and Wuhu City. An innovative move to be the first to promote high-quality economic development.
Qingdao Wudaokou was established in August 2019. It is a fund body specially set up to participate in Chery's capital increase and share expansion project. Its registered place is Qingdao Automobile Industry New Town, Jimo District, Qingdao City, Shandong Province. Jimo District, Qingdao City is an important cornerstone of Qingdao Wudaokou investor. The fund manager of Qingdao Wudaokou is Beijing Wudaokou Investment Fund Management Co., Ltd. (referred to as "Beijing Wudaokou").
"After Qingdao Wudaokou became a shareholder of Chery, it continued to promote Chery's establishment of a more market-oriented incentive mechanism, increase the introduction of resources and funds, strengthen capital operations, accelerate the national and global layout, and assist in the'Chery 2025 strategy' by adhering to the principle of'help not add chaos' Landing." Zhou Jianmin, chairman and founding partner of Beijing Wudaokou, said that the reason for participating in Chery's capital increase and share expansion is that he is still optimistic about the substantial growth space of China's auto industry, especially opportunities in new energy vehicles and internationalization. Chery has a very good competitive advantage in technology research and development, global division of labor, and has a good accumulation in new energy, intelligent network connection, and positive system construction. It is believed that this restructuring will further stimulate Chery's potential and enable investors to gain Good return on investment, to achieve better social benefits. Yin Tongyue, Chairman of Chery Holdings and Chery Automobile, said that the success of Chery's capital increase and share expansion project is a milestone for Chery to build a world-class brand. Chery has spent 22 years starting from the original "little thatched house" and growing into a Chinese brand deeply involved in the global value chain. Facing the new round of technological revolution and increasingly fierce competition in the industry, if you do not advance, you will retreat, and if you advance slowly, you will also retreat. Chery must adopt a more in-depth and more thorough spirit of innovation and change, introduce strategic capital, activate institutional mechanisms, and prepare Competition to seize the new track. The Qingdao Wudaokou team understands the automotive industry and has rich industry and customer resources, as well as industry investment and capital operation experience. It can assist Chery in achieving the 2025 strategic blueprint and empower Chery to take off.
According to the announcement, Qingdao Wudaokou's shareholding ratios in Chery Holdings and Chery Automobile are 30.99% and 18.5185%, respectively. The transaction price of the overall listed capital increase is 100 million yuan premium to the overall listed capital increase price. After the capital increase and share expansion transactions are completed, Qingdao Wudaokou’s shareholding ratio in Chery Holdings will reach 51%, and its direct shareholding in Chery Automobile will be 18.5185%, plus 32.4815% indirectly held by Chery Holdings. The total proportion will also reach 51%, Chery Holdings and Chery shares will undergo restructuring. This also means that Chery's reforms are more thorough and conform to the current general trend of deepening the mixed reform of state-owned enterprises. The essential purpose of the "mixed reform" of state-owned enterprises is not to mix ownership, but to better play the role of the market, promote the deep-level reform of enterprise mechanism and governance structure, realize the preservation and appreciation of state-owned assets, and bring vitality and creativity to the sustainable development of enterprises This is also one of the main purposes of Chery’s capital increase and share expansion. After
increases its capital and shares, Chery, which is rooted in Wuhu, will make a fuss about increments while keeping Wuhu's stock intact, further enhancing Chery's strategic vision and structure from Wuhu to a global level, realizing a wider range of strategic resources The configuration makes Wuhu, a modern and intelligent "auto city" more veritable, and makes the "big tree" of Chery more deeply rooted. All shareholders, including Qingdao Wudaokou, will jointly formulate market-oriented incentive mechanisms to promote the rapid development of Chery's business, realize the improvement of Chery's economic and social benefits, and realize the appreciation of state-owned equity in Wuhu and Anhui.
Some insiders believe that Anhui, where Chery was born, is one of the birthplaces of China's reform and opening up. This time Chery's capital increase and share expansion project, whether it is the Anhui Province, Wuhu Municipal Government or the new shareholders, is exploring and advancing with groundbreaking thinking, setting a benchmark for the "mixed reform" of state-owned enterprises in the automobile industry.
All-media reporter: Zhao Dandan
Image courtesy of Chery Holding Group
