On 13 September, Chery Holdings' Economic Observer Network learned that Chery will increase its capital and expand its shares. Since last year Chery intends to raise money. So is this the financing mentioned in the rumor last year? Chery Holdings officially confirmed this fact to the Economic Observer. The reporter noted, however, that this funding is very different from previous rumors.
First of all, the most important capital increase and the expansion of the share of "Chery Holdings", instead of Chery shares, about which rumors circulated earlier. "Chery is a subsidiary of Chery Holdings and Chery Automobile's main asset is Chery Holdings, the parent company also owns many assets, such as commercial vehicles, Chery Technology and Wuhu Shipyard, and secondly, the words" capital increase and share capital " The purpose of this capital transaction is to increase the appreciation by the expansion of shares and introduce capital.Calling this announcement, Chery does not try to sell "Chery", but an important reform that began at group level.
According to previous reports, on May 29 this year, Chery Co., Ltd. officially a workers' congress, in response to the decision of Chery Automobile's share transfer, the company voted by secret ballot and finally voted the vote. Chery intends to introduce foreign investors with an injection of no less than 20 billion yuan to invest in Chery Automobile in the form of capital increases and expansion of shares. Chery's appreciation is expected to reach 50 billion yuan. The announcement shows that Chery Holdings is the most important form of financing. Regarding the reason why such a change took place, Chery did not respond and did not confirm Chery's earlier financing plan.
Simultaneously with the capital increase and expansion of shares, Chery performed well at market level. In August, the total sales volume of Chery Holdings increased by 30%, and according to Chery's high-level forecast, Chery's growth in September is expected to exceed 50%. Since 2013 Chery has not harvested such brilliant transcriptions for a long time. In the worst case, Chery did not even release the sale for a while. Surprisingly, in the 2018, when the car market sharply declined, Chery achieved a real counterattack & # 39;
"Most companies are declining, but our turnover is picking up, and this trend is clear from March." A senior Chery executive told Economic Watch. In March this year, the total group sales of Chery increased by 13.7%, and since then growth has increased to 32.7% in August. In contrast, in August of this year, the Chinese passenger car market experienced negative growth, with sales down 4.55% year-on-year. In August, Chinese cars sold for their own account a total of 684,100 units, a decrease of 11.06% on an annual basis, accounting for 38.2% of total car sales, 2.8 percentage points lower than in 41% in the same period last year, the lowest point in the past three years.
Chery's above-mentioned internal executives said that this is the positive effect of Chery's reform. When the car market fell, this time "taking the cross off" was a company without quality. "2018 must be a turning point." The executive told reporters. The Economic Observer Online reporter has also learned from Chery's internal high-level that the capital increase and the expansion of equities is an important part of the major reforms initiated by Yin Tongyue, chairman of Chery Holdings Group. In Yin Tongyue's plan, Chery will implement spin-off and listing in the future, and at the same time it will be deployed in various areas, including new energy, travel and core components.