Changan auto boosts R&D with 9.1 bn yuan investment in subsidiaries

Chongqing Changan Automobile (Changan Auto) is undertaking a strategic capital increase and share expansion for two of its subsidiaries, Chongqing Changan Technology Co., Ltd. (Changan Technology) and Deepal Automobile Technology Co., Ltd. (Deepal Auto). Changan Auto, along with its indirect controlling shareholder, China Changan Automobile Group Co., Ltd., and controlling shareholder, Chengzhi Automobile Technology Group Co., Ltd., will inject a total of 3 billion yuan into Changan Technology. Following this, Changan Auto will hold 75% of Changan Technology.

Separately, Deepal Auto plans to raise approximately 6.122 billion yuan through a public listing and private agreement. Changan Auto will participate in the private agreement portion, contributing up to 3.122 billion yuan, comprising intangible assets and cash. After this transaction, Changan Auto will maintain its 50.9959% equity stake in Deepal Auto, which will remain a controlled subsidiary. These capital increases aim to enhance R&D, accelerate technological iteration, and strengthen market competitiveness for both subsidiaries.