Aotecar parent company injects capital for growth

Aotecar New Energy Technology's (Aotecar) board approved a private placement of up to 499.65 million yuan. Changjiang Industrial Investment Group, the controlling shareholder, will fully subscribe. The funds will be used to supplement working capital or repay bank loans, aiming to optimize the capital structure and strengthen risk resilience. The offering, representing up to 196,712,598 shares, is priced at 2.54 yuan per share. Changjiang Industrial Investment Group, through its subsidiary Hubei Changjiang Industrial Investment Fund Co., Ltd., will provide the capital injection.

The company's previous capital raise in 2021 saw 426.4811 million yuan raised, with a significant portion (222.9251 million yuan, 52.27%) allocated to permanent working capital. Several prior projects, including the "New Energy Vehicle Heat Pump Air Conditioning System Project" and "Annual Output of 600,000 Fourth-Generation Electric Compressors Project," did not meet their expected benefits. However, a reassessment of Aotecar's financial needs revealed a funding gap of 1.5447162 billion yuan for the next three years, justifying the current capital raise.