[Autohome News] On August 14th, Hengda Automobile (0708.HK) announced that it received the first strategic investment of 500 million US dollars from NWTN Group, a listed company held by the UAE sovereign fund, and 600 million RMB transition funds will be received one after another 5 working days after the announcement. All the war investment funds will be used for Hengda Automobile’s Tianjin factory to ensure the normal production of (|) and the continuous mass production of Hengchi 6 and 7. It is worth noting that NWTN Group will also assist Hengda Automobile to explore overseas markets and achieve the annual export of 30,000-50,000 Hengchi vehicles to the Middle East market.
It is worth mentioning that China Hengda, Mr. Xu, Hengda New Energy Vehicles and the subscribers have entered into a new energy vehicle share purchase agreement, according to which Hengda New Energy Vehicles has conditionally agreed to allot and issue, and the subscribers have conditionally agreed to subscribe for the subscription shares, resulting in the subscribers holding about 27.50% of the total issued share capital of Hengda New Energy Vehicles as a result of the issuance of new energy vehicle shares after the completion of the debt-for-equity swap and the subscription of new energy vehicle shares. The total consideration is HK $3,889,723,903 (equivalent to approximately US $500 million), which means that the subscription price per subscription share is HK $0.6297.
Assuming that the new energy vehicle debt-to-equity swap is completed and immediately following the completion of the new energy vehicle share subscription, Hengda Group’s shareholding ratio in Hengda New Energy Vehicle will be diluted to approximately 46.86%, and Hengda New Energy Vehicle will no longer be a non-wholly-owned subsidiary of Hengda Company, and its financial results will no longer be integrated into the results of Hengda Group.
Analysts said that after the completion of the real estate business divestiture, Hengda Automobile has become a pure new energy automobile company. This time, NWTN Group injected 500 million US dollars into Hengda Automobile for the first time, and I believe there will be more capital injections in the future. (Compiler/Autohome Zhouyi)