Changan Automobile NEV subsidiary to bring in new investors for Mission Shangri-La

Shanghai (Gasgoo)- Changan Automobile announced on October 19 that its wholly-owned subsidiary Chongqing Changan New Energy Vehicle Technology Co., Ltd. (Changan NEV Technology) plans to bring in no less than 3 new strategy investors to accelerate the deployment of the Mission Shangri-La new energy strategy.

According to the announcement, the transaction will be put on the public market and achieved by means of enlarging the shares by increasing capital in cash. After the capital increase, the equity held by new investors should account for no less than 51% of the company's total registered capital, thus Changan Automobile's equity proportion will be no more than 49%.

Changan Automobile said the new investors, whose main businesses should closely associate with the Changan NEV Technology's shareholders, is required to cooperate with the Changan's NEV subsidiary in strategic resources. Some well-known investment companies or large industry funds with rich investment and operation experience are also allowed to join the transaction.

On October 19, 2017, Changan Automobile announced its Mission Shangri-La new energy strategy that includes four strategic actions--One Hundred Billion Action, R&D by Ten Thousand People, Partner Program and Absolute Comfortable Experience. Based on the NEV strategy, the automaker aims to complete three NEV platforms 2020 and entirely stop the sales of fossil fuel-powered vehicles and electrify the whole product lineup by 2025.

Founded in May, 2018, Changan NEV Technology works on the R&D, production, processing, sales as well as consultation services of NEV vehicles and auto parts. Changan Automobile claimed on August that the board of directors decided to transfer its NEV-related businesses to Changan NEV Technology.