Beijing (ZXZC)- On January 24th, the previously reported B round financing of Changan New Energy was declared official. The investment round helped the new energy subsidiary of Changan Auto raise RMB4.9773 billion.

Photo credit: Changan Auto

In April 2021, Changan New Energy initiated its B financing round, expecting to raise RMB3 billion. After elaborate negotiations, nine investors were decided for this round. The final settlement exceeded Changan New Energy’s initially expectation amount by roughly RMB 2 billion. After the deal, Changan Auto’s stake in the company was down to 40.66%, still its primary shareholder.

Actually, as early as December 2019, Changan New Energy successfully raised RMB2.84 billion in it’s Series A investment round, and increased its registered capital from RMB99 million to RMB202 million. After the A round, Changan Auto’s stake in the company was diluted from 100% to 48.95%. This investment round also helped Changan New Energy became the first state-owned auto company to complete mix-ownership reformation. 

Moreover, Changan Auto is also the first state-owned auto company that spun off its new energy business in China. According to the president of Changan Auto, Wang Jun, the B round of investment will shine a new light on Changan New Energy’s development, enhancing its competitiveness and value within the industry. 

The company positioned itself as a “world-class mainstream EV brand”, aiming to sell at least 700,000 vehicles annually by 2025. From 2019 to 2021, Changan New Energy sold 156,000 vehicles accumulatively. In 2021 alone, the compmay sold over 100,000 vehicles, soaring nearly 300% year on year.

The company plans to introduce eleven new products in the following three years, including coupes, SUVs, MPVs, and other innovative forms. Additionally, Changan New Energy’s new battery-electric C385 will start mass production and delivery next year.

Notably, Changan Auto made it clear that after the B financing round, Changan New Energy plans to file for an IPO around 2025, with consideration of another financing round if necessary.