China Harmony Auto Announces Strategic Equity Subscription to Boost Expansion

China Harmony Auto Holding Limited ( (HK:3836) ) just unveiled an announcement.

China Harmony Auto Holding Limited has announced a supplemental agreement regarding a proposed subscription and deemed disposal of equity interest in a subsidiary. The subscription, amounting to US$40 million, represents a 9.9999% stake in the enlarged issued share capital of the Target Company, aimed at supporting its phased expansion into new international markets. Despite an increase in net liabilities, the Target Company showed improved operational performance with significant revenue growth and reduced net loss in early 2025. The strategic investment by a subsidiary of BYD Company Limited, a leader in new energy vehicles, provides the Target Company with preferential rights and strengthens its market position, ensuring a stable supply chain and enhancing its competitive edge.

The most recent analyst rating on (HK:3836) stock is a Hold with a HK$0.91 price target. To see the full list of analyst forecasts on China Harmony Auto Holding Limited stock, see the HK:3836 Stock Forecast page.

More about China Harmony Auto Holding Limited

China Harmony Auto Holding Limited operates in the automotive industry, primarily focusing on the distribution and after-sales services of automobiles, particularly those manufactured by BYD Company Limited, including the BYD and DENZA brands. The company has a significant market presence in Hong Kong and overseas, with a substantial portion of its revenue driven by the sales and services of these vehicles, highlighting its strategic positioning in the new energy vehicles market.

Average Trading Volume: 2,047,424

Technical Sentiment Signal: Sell

Current Market Cap: HK$1.39B

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