Changan Automobile is divesting 10% of its stake in Avatr Technology (Chongqing) Co., Ltd., listing the shares for transfer on the Shanghai United Assets and Equity Exchange. The proposed transaction is valued at approximately 3.1828 billion yuan (around $470 million USD), with the listing period set to conclude on December 10th.
Following this sale, Changan Automobile will continue to be the largest shareholder in Avatr. The current shareholder structure indicates Changan Auto holds 40.994%, followed by Contemporary Amperex Technology Co., Ltd. (CATL) with 9.1742%, and various investment funds and entities holding the remaining stakes.
Avatr, a joint venture focused on electric vehicles, has been making strides in its development. In June of this year, the company submitted its listing application to the Hong Kong Stock Exchange, with CITIC Securities and CICC acting as joint sponsors. This move signals Avatr’s ambition for further growth and expansion in the competitive EV market.
Avatr’s Financial Performance and Projections
Recent disclosures from Avatr’s prospectus paint a picture of rapid revenue growth and expanding gross profit. For the full year 2025, Avatr projects total revenue to reach 25.631 billion yuan, marking a significant year-on-year increase of 68.7%. The company’s gross profit, which turned positive in 2024, is expected to expand to 2.417 billion yuan in 2025, with a gross profit margin rising to 9.4%. Furthermore, Avatr anticipates a positive operating cash flow of 2.315 billion yuan in 2025.
Despite the positive revenue and gross profit outlook, Avatr has been operating at a loss. The company reported net losses of 3.693 billion yuan in 2023, 4.018 billion yuan in 2024, and a projected loss of 3.489 billion yuan for 2025.
Strategic Investments and International Expansion
Avatr has also been active in strategic investments. In 2025, the company invested 11.5 billion yuan to acquire a 10% stake in YinWong, an associated company. This investment is expected to contribute 182 million yuan in profit share from the associated company in 2025.
The company is also focusing on international expansion. In 2025, Avatr’s overseas revenue is projected to be 1.398 billion yuan, accounting for 5.5% of its total revenue. The average selling price in overseas markets exceeds 300,000 yuan, indicating a focus on premium segments in its international push.
The divestment by Changan Automobile comes at a pivotal time for Avatr as it seeks to strengthen its financial position and potentially fund its expansion plans, including its initial public offering.
