Shanghai (Gasgoo)- On June 14, Jiangsu Changshu Automotive Trim Group Co., LTD. (referred to as "CAIP") released a statement, articulating a strategic move to enhance the capital strength of its wholly-owned subsidiary, Changchun City Changchun Automotive Interior Parts Co., Ltd. (referred to as "Changchun Changchun").
According to the announcement, CAIP plans to boost Changchun Changchun's registered capital by an impressive 150 million yuan, using its own funds. Following this capital injection, Changchun Changchun's registered capital will rise from 45 million yuan to a 195 million yuan, with CAIP retaining complete ownership.
Photo credit: CAIP
Moreover, the announcement revealed a subsequent plan to bolster the capital strength of its second-tier wholly-owned company, Shenyang Changchun Automotive Parts Co., Ltd (referred to as "Shenyang Changchun"). This initiative aims to support Shenyang Changchun's growth and continuation of BMW project orders. It is anticipated that Changchun Changchun will increase Shenyang Changchun's registered capital by another 150 million yuan, again using its own funds.
Established on January 17, 2011, and registered with the Shenyang Municipal Administration for Industry and Commerce, Shenyang Changchun is wholly owned by Changchun Changchun, making it a second-tier subsidiary of CAIP.
Upon completion of this capital enhancement, Shenyang Changchun's registered capital will see a surge from 52 million yuan to 202 million yuan, with Changchun Changchun still maintaining total ownership.
CAIP said it believes that upon completion, the substantial boost in the capital strength of Changchun Changchun and Shenyang Changchun will facilitate broader operational expansion and investment development. Ultimately, these moves will contribute to larger investment returns, marking a promising prospect for the CAIP's future.
CAIP was established in 1996, and was listed in Shanghai Stock Exchange in 2017. It has established joint ventures with Peguform (Germany), Antolin (Spain), Greiner (Austria), Magna (Canada), and the WAY Group of Germany, endeavoring to become a core supplier of the more valuable products for whole automobile enterprises, to provide clients with integrated services “from project engineering development and design to mold design and manufacturing, equipment automatic solutions, product testing and verification as well as cost optimization solutions”, according to the introduction posted on the company’s official website.
