Evergrande Auto's first financing is announced, with Tencent Holdings and Yunfeng Fund among the investors.

Early this morning, Evergrande Auto announced that it had introduced investments from companies such as Tencent, Sequoia Capital, Yunfeng Fund, and Didi Chuxing in a “replace old with new” manner on September 15th, raising approximately HKD 4 billion (approximately RMB 3.5 billion).

Evergrande Auto issued 177 million shares for sale at a price of HKD 22.65 per share, with the total amount raised from the sale expected to be nearly HKD 4 billion. According to the announcement, the funds raised will be mainly used for Evergrande Auto’s general business purposes, with no specific information provided as of yet.

Investors in Evergrande Auto’s financing include Yunfeng Fund, Sequoia Capital, and other funds, as well as Tencent and Didi Chuxing, among other internet giants. Currently, Tencent has become NIO’s second-largest shareholder and Tesla’s fifth-largest shareholder. Alibaba and Sequoia Capital are both XPeng Motors’ second-largest shareholder and an important strategic investor, while Didi Chuxing dominates in the field of mobility. Now, all sides have unanimously invested in Evergrande Auto, which also raises high expectations for “Hengchi” among outsiders.

On August 3, Evergrande launched the first six models of “Hengchi” in Shanghai and Guangzhou simultaneously, covering all levels from A to D and various passenger car models such as sedans, coupes, SUVs, and MPVs.

On August 26, Evergrande Group renamed its listed subsidiary “Evergrande Health” to “Evergrande Auto”.

Developing new energy vehicles has become a key business for Evergrande Group. Previously, Evergrande had claimed that it would strive to become the world’s largest and strongest new energy vehicle group within three to five years.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.