Shanghai (Gasgoo)- Chinese automaker Foton Motor agreed to increase capital of Beijing Borgward Automotive Co.,Ltd (hereinafter referred to as Borgward) with an additional investment of RMB 4.409 billion, Foton Motor announced on June 27. The final investment value should be subject to the appraisement by the State-owned Assets Supervision and Administration Commission of the State Council.
After the capital increase, Borgward's aggregate registered capital will be up to RMB 7.40952 billion from RMB 3 billion.
The announcement said that Foton Motor will still hold 100% stake in Borgward after the capital increase completes. Meanwhile, it doesn't constitute any affiliated transaction or material asset reorganization in accordance with the Administrative Measures for the Material Asset Reorganizations of Listed Companies issued by the China Securities Regulatory Commission. The approval from the company's general meeting of shareholders is not needed either.
According to relevant data, by the end of 2017, Borgward possessed total assets worth of RMB 5.039 billion and net assets of RMB 1.135 billion. In 2017, the company achieved annual sales revenue of RMB 5.096 billion with a net profit loss of RMB 274 million. By the end of March 31, 2018, Borgward saw its total assets up to RMB 6.653 billion and net assets reaching to RMB 2.147 billion. In the first quarter this year, the automaker obtained quarterly sales revenue of RMB 640 million, while suffering a loss of RMB 128 million in net profit.
Assisted by the investment from its Chinese parent company Foton Motor, Borgward's first mass-produced 4WD electric SUV, dubbed the Borgward BXi7, hit China's market on May 9. Currently, the Stuttgart-based subsidiary has set up R&D centers in China, the U.S. and Germany to carry forward its development in EV, intelligent connectivity and autonomous driving areas.
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