Changan Auto Terminates Subsidiary Capital Increase, Plans New Market Financing
Changan Auto has terminated the capital increase and share expansion of its wholly-owned subsidiary, originally involving a total of RMB 3 billion from the company, its indirect controlling shareholder China Changan Auto, and controlling shareholder Chenzhi Group. The board approved the termination on July 30, 2026, with one resolution pending shareholder approval. The company plans to launch a new round of market-based financing, with China Changan Auto and Chenzhi Group continuing to participate.
In the original plan, Changan Auto intended to contribute a total of RMB 3 billion together with its indirect controlling shareholder China Changan Auto and its controlling shareholder Chenzhi Group through a non-public agreement to participate in the capital increase.
On July 30, 2026, the company held the 61st meeting of the 9th board of directors, which approved the Resolution on Terminating the Capital Increase and Share Expansion of the Wholly-Owned Subsidiary and the Resolution on Terminating the Capital Increase to the Wholly-Owned Subsidiary. The latter resolution is still subject to shareholder meeting approval. After this adjustment, the company plans to initiate a new round of market-based financing as soon as possible, and the original investors, China Changan Auto and Chenzhi Group, will continue to participate in the new financing.