Chery Holdings' capital increase and share expansion officially started, and Chery grew against the trend

On September 13, Chery Holdings announced that Chery would increase capital and expand shares. Since last year, Chery has been rumored to be planning to raise funds.

The main body of this capital increase and share expansion is "Chery Holdings", not Chery Automobile Co., Ltd. as previously rumored. Chery Automobile Co., Ltd. is a subsidiary of Chery Holdings and the main asset of Chery brand automobiles. The capital increase and share expansion is also involved. As the parent company, Chery Holdings also has many assets such as commercial vehicles, Chery Technology, and Wuhu Shipyard.

The words "capital increase and share expansion" indicate the purpose of this capital operation, which is to increase valuation and introduce capital through share expansion. Judging from the information in this announcement, Chery is not going to sell "Chery", but is starting a major reform at the group level.

On May 29 this year, Chery Automobile Co., Ltd. formally held a staff representative meeting. The company voted in secret on the decision to transfer the equity of Chery Automobile, and finally passed it unanimously. Chery Automobile Co., Ltd. plans to introduce foreign investors in the form of cash injection of no less than 20 billion yuan, and acquire shares in Chery Automobile in the form of capital increase and share expansion. The valuation of Chery Automobile Co., Ltd. is expected to reach 50 billion yuan.

The announcement shows that the main body of financing is Chery Holdings. As for why such a change occurred, Chery did not respond, nor did it confirm Chery's previous financing plan.

While increasing capital and expanding shares, Chery performed well in the market. In August, Chery Holdings' overall sales increased by 30%, and according to Chery's senior management, Chery Holdings' sales are expected to increase by more than 50% in September. In 2018, when the auto market was in a serious decline, Chery achieved a true "comeback".

The capital increase and share expansion is a key part of the major reform being carried out by Yin Tongyue, chairman of Chery Holding Group. Chery will be listed separately in the future and will also make layouts in multiple fields, including new energy, travel, core components, etc.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.