Sokon introduces new investor to increase registered capital for Jinkang New Energy

Shanghai (Gasgoo)- Chongqing Sokon Industry Group Stock Co.,Ltd (Sokon) plans to introduce a new investor to increase registered capital by RMB960 million for its wholly-owned NEV subsidiary Chongqing Jinkang New Energy Automobile Co., Ltd (Jinkang New Energy), Sokon announced on June 25.

(Photo source: http://www.sokon.com/)

After the transaction, the registered capital of Jinkang New Energy will rise from RMB4 billion to RMB4.96 billion, of which the share held by Sokon will be decreased to 80.645% from 100%, while the other 19.355% belongs to the new investor.

It is worth mentioning that the new investor, Chongqing Jinxin Equity Investment Fund Partnership Enterprise (Limited Partnership) has four shareholders, two of which are actually controlled by Chongqing State-owned Assets Supervision and Administration Commission and Chongqing Liangjiang New Area Administration Commission, two organs managed by local government.

Prior to the latest change, registered capital of Jinkang New Energy had been increased to RMB1 billion from RMB300 million in April 2017, and then further grew to RMB4 billion. The previous two capital increases were powered by Sokon's own funds and the public issuance of convertible corporate bonds. However, Sokon still possessed 100% stake in the subsidiary after the former two adjustments.

Sokon stated that the introduction of shareholders from outside is to optimize the company's capital structure based on its strategy to develop new electric vehicles and won't harm the interests of the company and all shareholders.

It is reported that Jinkang New Energy’s intelligent plant, involving a total investment of RMB2.5 billion, has kicked off trial operation on November 29, 2018. The first production model is set to go on sale in the third quarter of 2019.