Aotecar Energy secures funding for strategic growth initiatives

Aotecar New Energy Technology is undertaking a private placement, with its controlling shareholder, Hubei Changjiang No. 1 Industrial Investment Partnership (Limited Partnership), subscribing to all issued shares for CNY 590 million. This capital injection, approved by the board of directors and shareholders, aims to optimize the company’s capital structure, enhance its risk resilience, and provide funds for operational needs and debt repayment.

The offering price is CNY 2.54 per share. The total number of shares issued will not exceed 232,283,464, which is less than 30% of the company's total share capital before the issuance. Hubei Changjiang Industrial Group Co., Ltd. and its subsidiary will remain the largest shareholder with 23.04% of the shares after the placement. The shares are subject to an 18-month lock-up period.

This initiative is set to improve Aotecar’s financial health, with total assets and net assets expected to increase, while the asset-liability ratio decreases. The company’s core business focuses on automotive thermal management systems and components, including compressors, air conditioning systems, and energy storage battery thermal management products. This strategic financing is intended to strengthen research and development, expand production capacity, and support global market expansion. The company has obtained 20 new domestic patents and one international patent, further solidifying its technological advantage in the industry.