Qijing Auto, a subsidiary of GAC Group, has completed a capital increase of more than RMB 1 billion, introducing battery manufacturer CATL and a Bosch-affiliated investment platform as strategic shareholders to fortify its automotive supply chain. The deal provides a significant capital infusion and deepens the technical and strategic ties between the automaker and two of its critical suppliers.
According to mainland media reports, the capital increase also included several state-owned and central state-owned enterprise capital entities. Following the transaction, the combined stake of the original shareholders, GAC GROUP (02238.HK) and its EV arm GAC Aion, was diluted from 100% to approximately 70%. Despite the dilution, the parent group retains a controlling interest in Qijing Auto, which is now jointly held by the original shareholders, the new external investors, and an employee shareholding platform.
The primary objective of this funding round is to enhance industrial synergy and strengthen supply chain capabilities. By bringing CATL, the world's largest EV battery manufacturer, and Bosch, a leading global automotive supplier, directly into its ownership structure, Qijing Auto is locking in critical partnerships. This move is designed to create a more integrated and resilient supply chain, securing access to key components and fostering closer collaboration on research and development for future vehicle platforms.
This transaction highlights a growing trend among Chinese automakers to vertically integrate or form tight-knit alliances with key technology suppliers. For GAC Group, the deal not only strengthens a key subsidiary but also solidifies its relationships with CATL and Bosch, which could lead to preferential supply terms and joint innovation. The investment is expected to bolster Qijing Auto's production capabilities and increase competitive pressure on other players in the smart vehicle and auto parts sectors who lack such deep integration with their supply chain partners.
This article is for informational purposes only and does not constitute investment advice.
