Harmony Auto secures $40m investment from BYD subsidiary for global expansion

China Harmony Auto Holding Limited ("Harmony Auto") announced a supplemental update on a proposed subscription of $40,000,000, representing 9.9999% of the enlarged issued share capital of a Target Company. This investment aims to fund a phased expansion of the Target Group's retail network and entry into new international markets across Asia Pacific, Europe, the Middle East, and Africa. Despite a net liability increase for the Target Company from RMB202.0 million (December 31, 2024) to RMB264.3 million (April 30, 2025), its operational performance significantly improved in 2025.

The Target Company's revenue surged from RMB1,788.4 million in 2024 to RMB2,135.9 million in the first four months of 2025, with net losses narrowing from RMB194.9 million to RMB48.6 million over the same periods, indicating enhanced efficiency. The subscriber, an indirect wholly-owned subsidiary of BYD Company Limited, receives preferential treatments, including affirmative voting rights on reserved matters and dividend entitlements of 20-60% of distributable profits, to secure the strategic partnership.

This partnership is crucial for Harmony Auto, as over 95% of its Hong Kong and overseas segment revenue, which grew approximately fivefold year-on-year to constitute 40.5% of total revenue, is derived from sales and services of BYD and DENZA cars. The company believes this collaboration will secure a stable supply chain, enhance market credibility, and solidify its competitive position in the new energy vehicle market.