6 billion, China Chang'an increases investment in Changan Automobile

In the current situation where competition in the Chinese automobile market has reached a white - hot stage, capital is particularly important for major automakers.

Changan Automobile has launched a new round of refinancing, and the new central enterprise, China Changan, plans to invest 6 billion yuan in it.

Meanwhile, two new energy vehicle companies under Changan Automobile, Deepal and Avita, are seeking financial support through different means such as capital increase and IPO.

6 - billion - yuan refinancing

Yesterday, Changan Automobile (000625.SZ) disclosed a plan to issue A - shares to specific investors, aiming to refinance 6 billion yuan.

The number of shares planned to be issued this time is 630 million, with an issue price of 9.52 yuan per share. The issuer is China Changan Automobile.

China Changan Automobile is a new central enterprise established through the spin - off of the former China South Industries Group in July this year. It is the 100th central enterprise and the third automobile central enterprise in China. Its business covers the entire automobile industry chain, including automobile vehicles and parts, automobile sales, finance and logistics services, and motorcycles.

According to its official website, the group has 143 subsidiaries and branches, including five listed companies such as Changan Automobile, Jiangling Motors, Dongan Power, Hunan Tianyan, and Changan Minsheng Logistics.

The latest financial data shows that as of the end of September 2025, China Changan Automobile's total assets were 285.345 billion yuan, and its owner's equity was 106.116 billion yuan. From January to September, it achieved an operating income of 143.747 billion yuan and a net profit of 2.835 billion yuan (unaudited).

China Changan is an indirect controlling shareholder of Changan Automobile. Currently, it and its persons acting in concert directly hold a total of 35.07% of the listed company's equity. After the completion of this private placement, the shareholding will increase to 38.95%.

Through the private placement to raise funds, Changan Automobile will invest 4.5 billion yuan and 1.5 billion yuan respectively in two projects: the development of new energy vehicle models and digital - intelligent platforms, and the construction of a global R & D center and the improvement of core capabilities.

Changan Automobile said that the construction of the above two projects will help the company further expand its new energy product portfolio, increase R & D on the Tianshu intelligent cockpit and intelligent driving platform, and enhance its competitiveness in the future new energy vehicle market.

In 2017, Changan Automobile launched its "Third Entrepreneurship", transforming from a traditional automobile company to an intelligent, low - carbon technology company. It is deeply promoting three major plans, namely the new energy "Shangri - La" plan, the intelligent "Beidou Tianshu" plan, and the global "All - embracing" plan, as well as the "New Automobile, New Ecosystem" strategy and the "152" global layout to cope with future global competition.

Whether it is the improvement of technological strength or the reserve of vehicle models, long - term investment is required.

However, in recent years, with the rapid penetration of new energy vehicles in the Chinese automobile market, the number of market participants has increased significantly, leading to continuous price wars and severe involution in the industry, which has directly eroded the profitability of automobile enterprises.

As a leading automaker in China, Changan Automobile has also been inevitably affected.

In 2023, the company's net profit attributable to the parent once exceeded the 10 - billion - yuan mark, but in the following year, it dropped by 35.37% to 7.321 billion yuan. This situation has not improved this year. In the first three quarters, with the company's operating income increasing by 3.58% year - on - year to 114.9 billion yuan, the net profit attributable to the parent decreased by 14.66% year - on - year to 3.055 billion yuan.

At this time, China Changan's full subscription of the private placement shares to further support Changan Automobile not only reflects the major shareholder's confidence in the long - term development of the listed company but also can improve the company's overall financial situation.

This year, Changan Automobile has performed well in the market. From January to November, the cumulative sales volume reached 2.6582 million vehicles, a year - on - year increase of 9.25%. Among them, the sales volume of self - owned brands was 2.2604 million vehicles, a year - on - year increase of 11.48%, and the sales volume of new energy vehicles was 994,900 vehicles, a year - on - year increase of 54.66%.

Subsidiaries are actively seeking funds

Changan Automobile is a state - owned automobile group with strong self - owned brands. It has established a five - brand framework and completed the layout of three intelligent electric brands: Avita, Deepal, and Changan Qiyuan.

10 years ago, during the heyday of fuel vehicles, Changan Automobile achieved strong profitability with its powerful self - owned brand strength. In the process of switching from fuel vehicles to new energy vehicles, the layout of new businesses still requires long - term cultivation and capital investment.

Not long ago, its subsidiary Deepal carried out a capital increase and share expansion, raising a total of 6.122 billion yuan.

Among them, Changan Automobile increased its capital by 3.122 billion yuan, including 2.079 billion yuan of its own funds and intangible assets valued at 1.043 billion yuan. The intangible assets are the relevant patents, proprietary technologies, and software copyrights of Deepal's S05 and G318 models held by Changan Automobile.

In addition, Yufu Group and CMB International Capital invested 2.5 billion yuan and 500 million yuan in cash respectively. After the capital increase, Changan Automobile's shareholding remains unchanged at 50.9959%, and Yufu Group and CMB International Capital hold 12.0934% and 2.4187% respectively.

Yufu Group is a subsidiary of the Chongqing State - owned Assets Supervision and Administration Commission; CMB International Capital is a wholly - owned non - bank financial investment enterprise of China Merchants Bank.

Deepal was established in May 2018, formerly known as Changan New Energy Technology Company. It is the main carrier of Changan Automobile's new energy strategy under the "Shangri - La Plan" and represents the achievements of Changan Automobile's 20 - year accumulation in the new energy vehicle field.

Currently, Deepal has multiple models on sale, such as L06, L07, S07, S09, and G318. In 2024, the brand's cumulative deliveries reached 243,900 vehicles; in the first 11 months of this year, the delivery volume was 302,100 vehicles, completing about 84% of the annual target.

Even though the sales volume has increased significantly, Deepal still continues to lose money. In 2024, the net profit was - 1.572 billion yuan, and it lost another 553 million yuan in the first half of this year. During the same period, the asset - liability ratios were as high as 110.24% and 115.50% respectively.

Meanwhile, Avita, which bears the high - end mission of Changan Automobile, needs stronger financial support and is currently seeking to list on the Hong Kong Stock Exchange.

Behind Avita are three giants: Changan, CATL, and Huawei. It is a new energy vehicle brand jointly supported by the "dream team of car - making".

As the major shareholder, Changan Automobile empowers Avita in R & D, manufacturing, supply chain, and channels. As the world's largest new energy battery supplier, CATL provides the most advanced new energy technology platform for Avita and invests to become the second - largest shareholder. Although Huawei does not hold direct shares, it provides top - notch intelligent vehicle solutions for Avita through the HI model.

Since 2022, Avita has successively launched multiple models such as Avita 11, 12, 07, and 06, but has not achieved a major breakthrough in the market. In 2023 and 2024, the deliveries were 20,000 and 61,600 vehicles respectively. Relevant data shows that in the first 11 months of this year, Avita's cumulative sales volume was about 118,000 vehicles, only completing 53% of the annual target of 220,000 vehicles.

The prospectus shows that from 2022 to 2024 and the first half of 2025, the company's cumulative losses reached 11.3 billion yuan, and it is expected to continue to lose money this year.

This article is from the WeChat official account "Banma Consumption" (ID: banmaxiaofei), author: Fan Jian, published by 36Kr with authorization.