AIWAYS Auto’s purchase of Jiangling Holdings Co., Ltd. (hereinafter referred to as “Jiangling Holdings”) has been completed. On July 26, the legal representative of Jiangling Holdings Co., Ltd. Has been changed, the legal representative of Jiangling Holdings was no longer Zhang Baolin, the president of Changan Automobile Co., Ltd., but was replaced by Xu Jun, the co-president of AIWAYS Auto, this also means that AIWAYS Auto officially completed the capital increase of Jiangling Holdings and obtained manufacture qualification.
On June 4, Changan Auto announced that Jiangling Holdings Co., Ltd., a joint venture company of Changan Auto, plans to introduce strategic investors to increase capital. The capital increase and share expansion will be carried out in cash. AIWAYS Auto plans to increase its capital by 1.747 billion yuan, of which 1 billion yuan is included in the registered capital, 747 million yuan is included in the capital reserve, AIWAYS Auto had also paid a deposit of 300 million yuan. After the completion of this capital increase, the registered capital of Jiangling Holdings will increase from 1 billion yuan to 2 billion yuan, AIWAYS Auto will hold 50% of the shares of Jiangling Holdings, Changan Automobile and Jiangling Motors Group Co., Ltd. will hold the equity share of Jiangling Holdings. Diluted from 50% to 25%.
Editor’s Pick: AIWAYS Auto to Acquire 50% Share of Jiangling Holdings
However, it is worth mentioning that Jiangling Holdings, which is acquireed by AIWAYS Auto, is not the original Jiangxi Jiangling Holdings Co., Ltd., the original Jiangling Holdings was the one Changan Automobile Co., Ltd. and Jiangling Motors Group Co., Ltd. jointly invested in a 50:50 joint venture in October 2004, the original Jiangling Holdings has two vehicle manufacturers, one is Landwind(Lufeng) Motor, which holds 100% of the shares, the other one is Jiangling Motors, and holds 41.03% of the shares.
In April of this year, the original Jiangling Holdings was divided into three separate companies, Jiangling Investment and Jiangling Holdings (new). Jiangling Motors is owned by Jiangling Investment, and Lufeng Motor is owned by Jiangling Holdings (new), which is the company now belongs to AIWAYS. In other words, AIWAYS holds the Landwind through the capital increase.
Landwind is qualified for the production of cars, SUVs and MPVs, this is a good partner for AIWAYS Auto cars which has upcoming mass production products but not qualified. For Landwind, the purchase is also a sign of its transformation and upgrading. As the SUV market has entered the integration period, the fuel vehicle market has entered an inflection point, the Chinese market layout has turned to intelligent, new energy vehicles, the subsequent development of Jiangling Holdings in the SUV market will hard to increase if it does not transform, the entry of AIWAYS will probably boost the development vitality and operational efficiency of Landwind to a certain extent, and transform into new energy and intelligence.