Chery 14 Billion 450 Million To Increase Capital And Expand Shares To Introduce Shandong'S State Owned Wuhu Base, Qingdao Does Not Increase.

After issuing several "gossip" objects and several delayed "official propaganda" time, Chery's "mixed reform" finally came to a close.

In December 4th, the Changjiang property exchange bulletin showed that Chery Holdings Group Limited (hereinafter referred to as Chery Holdings) and Chery automotive Limited by Share Ltd (hereinafter referred to as "Chery automobile") increased capital and expansion projects smoothly, and the new energy automobile industry fund enterprise (limited partnership) of Wudaokou, Qingdao (hereinafter referred to as "Qingdao Wudaokou") became the largest shareholder of Chery holdings and Chery motors.

Specifically, Qingdao Wudaokou invested 7 billion 586 million 370 thousand yuan and 6 billion 863 million 210 thousand yuan in Chery holdings and Chery motor respectively, gaining 30.99% and 18.52% equity interest in two. At the same time, Chery holdings's largest shareholder, Wuhu Construction Investment Co., Ltd. (hereinafter referred to as "Wuhu construction investment", and Wuhu SASAC) has reduced its shareholding ratio from the previous 40.12% to 27.68%.

After the completion of the capital increase, Qingdao Wudaokou will also have the absolute control power of Chery. It is said that Chery's controlling shareholder "Hua Tai Zi Guan" and "Rui Chuang investment" will transfer the 15.78% and 4.23% stake of Chery holding to its new shareholders. After the transfer is completed, Wudaokou, Qingdao will hold a 51% stake in Chery holdings. On the basis of Chery's direct shareholding of 18.52%, plus the indirect shareholding of 32.48% through Chery holdings, the total proportion will also reach 51%, so that the Chery holding and Chery cars will be restructured.

It can be seen that Chery's action to increase capital and expand shares is very large, and its new shareholder status has always attracted much attention. A PE investor told the twenty-first Century economic news reporter that although "definitely can not afford to fail", but I have been watching Chery's "mixed change" progress, mainly to understand who can take down, and how will it affect Chery's strategic trend.

It is reported that Wudaokou, Qingdao was founded in August 2019, is the main body of the fund to participate in Chery's capital increase and expansion project. Its registered location is located in Qingdao automobile industry new town of Jimo District, Qingdao City, Shandong province. The fund manager is Beijing Wudaokou Investment Fund Management Co., Ltd. (hereinafter referred to as Beijing Wudaokou).

Wudaokou, Qingdao, has invested at least 14 billion 450 million yuan in Chery's "mixed reform". Where the funds come from is unclear. However, public information shows that Shandong state owned Shandong high-speed group will be a limited partner of Qingdao Wudaokou. Chery also said Qingdao Jimo area is an important cornerstone investor for Qingdao Wudaokou.

How will the relationship between the new shareholders and the original management be handled after Wudaokou's entry into Qingdao? Will Chery change in terms of its strategic positioning and organizational structure? These problems are the focus of the industry.

Shandong's state-owned assets take part in Chery's "mixed change"

"Big dishes are government acts." On the afternoon of December 4th, a person close to the Qingdao municipal government told reporters on twenty-first Century economic report that Qingdao Wudaokou should make a government guidance fund.

Although the main shareholder of Qingdao Wudaokou in the industrial and commercial system is Beijing Wudaokou, a bulletin disclosed by 600350.SH, a listed company in early November this year, shows that the important role behind Qingdao Wudaokou will be Shandong high speed group.

The above announcement shows that the overall scale of the Qingdao Wudaokou fund is 2 billion 20 million yuan, of which 2 billion yuan comes from two companies of Shandong high speed group. In addition, Wang Juan, a natural person, invested 1 million yuan as a limited partner, while Beijing Wudaokou paid 19 million yuan as a general partner to participate in the management of partnership affairs.

During the early negotiations, government funds gave great support. The information provided by Chery shows that Jimo District of Qingdao is the cornerstone investor of Qingdao Wudaokou.

In fact, the registered place of Wudaokou in Qingdao is located in the Qingdao auto industry new town of Jimo District, Qingdao, and this lead in Chery's "mixed change" is also regarded as a key step for Qingdao to further develop the automobile industry.

Qingdao has already had a certain base of automobile industry. The people told reporters that at present, the automobile and the FAW Volkswagen and other vehicle and supporting enterprises have already been assembled in the automobile city, and motor city has also been hoping to further introduce more high-end vehicle projects.

Zhou Jianmin, founder and partner of Wudaokou, Beijing, said that the reason for Chery's capital increase and share expansion is still optimistic about the substantial growth of China's auto industry, especially in new energy vehicles and internationalization.

Wudaokou, Beijing, is the fund manager of Qingdao Wudaokou. It was founded by the famous alumni of the school of economics and management of Tsinghua University and the Wudaokou Finance School of Tsinghua University. Its main business is PE investment, merger and reorganization, etc. the fund has a management scale of 2 billion yuan, and has led many listed companies to acquire M & a funds, equity investment funds and government PPP funds.

Zhou Jianmin is one of the core figures of Chery's "mixed change". He is also an alumni of Shandong University, another key Mr. Jiao Shu Ge (also known as Jiao Zhen), who works in Wudaokou, Qingdao. It is worth mentioning that Jiao Zhen is a native of Shandong, and also has a deep connection with Chery. This time, Qingdao Wudaokou's stake in Chery is his leading role.

According to public information, Jiao Zhen is the founder and President of CDH investment. As early as 2009, he joined the Huarong Asset Management Co., Ltd. and Rong de Asset Management Co., Ltd. to buy Chery motor at the price of 2 billion 900 million yuan. At present, Ding Hui also holds 2.61% and 0.74% shares of Chery through the Tianjin CDH equity investment phase I fund and Tianjin CDH Yuan Bo equity investment fund.

A person close to Chery told reporters on twenty-first Century economic report that the core logic of the new shareholders' participation in Chery's capital increase and share expansion is the development space of China's auto independent brand. On the one hand, the Chinese market is still very large, and on the other hand, its own brand is more aware of the Chinese market.

"Wuhu does not move, increments in Qingdao"

Chery's "mixed change" has a long history. In September last year, Chery announced the announcement of its capital increase and share expansion on the property exchange, but failed to introduce new shareholders.

From the first small house built up from scratch, Chery has grown into a sizeable automobile group in the past 22 years. Why do we open up equity at this time? Those close to Chery told the twenty-first Century economic news reporter that, in order to raise funds more conveniently, the two is to activate the institutional mechanism to the maximum extent.

After the Qingdao Wudaokou shares Chery, Chery will continue to promote Chery's establishment of a more market-oriented incentive mechanism, increase the introduction of resources, strengthen capital operation, speed up the layout of the whole country, and help Chery's 2025 strategy fall. Zhou Jianmin also said.

Despite its good performance in its own brand, Chery's operation has not been ideal because of overseas market development and huge investment in research and development. The announcement shows that as of the first half of this year, Chery holdings and Chery motor lost 156 million yuan and 1 billion 374 million yuan respectively.

Chery has formulated the "2025 strategy" plan to cope with the transformation of the automotive industry, which includes the dual main business layout of "automobile + modern service", and also includes the expansion of new energy vehicles, intelligent interconnection, sharing trips, overseas markets, and so on. "Planning has, is lack of funds." Those close to Chery said that Chery had not been listed for years, mainly borrowing money from banks, and the cost of capital remained high.

According to his disclosure, after the stock market in Wudaokou, Qingdao, not only short-term capital problems can be solved, but also in the medium to long term, it will bring more financial resources and market resources and land in the capital market faster. "Jiao Zhen is very familiar with the automotive industry, has many resources of listed companies, and is also very experienced in the capital market."

It should be noted that Qingdao Wudaokou will hold 51% stake in Chery and occupy an absolute controlling position. This is a great breakthrough for Chery, a state-owned enterprise in Wuhu. The people close to Chery said that the controlling power was released to further marketization and completely solve the constraints of institutional mechanisms.

However, although Wuhu construction investment is no longer the largest shareholder of Chery, it continues to have the right to vote, namely, one vote veto.

It is understood that after the announcement of the shares, the relevant industrial and commercial registration will be completed within 1 months. The follow-up work arrangements will continue to be negotiated by relevant parties in accordance with Chery's overall capital increase and share expansion plan and the signed capital increase and share expansion agreement. It is reported that Chery management has not yet changed, but the future will be adjusted according to the situation.

The outside world is most concerned about the whereabouts of Yin Tongyue, founder and chairman of Chery. According to the twenty-first Century economic report reporter, Yin Tong Yue will continue to serve as chairman of the board.

In addition, will Chery build its production base to the new town of Qingdao's automobile industry in the future? It is reported that Chery will be located in a vehicle factory in Jimo district. Those close to Chery told reporters that construction projects will be carried out according to the plan. If the market grows, the new capacity will be put into Qingdao, but it needs to be clear that the Wuhu base will not be affected at present, that is to say, Qingdao only makes incremental.