Analysis of the Impact of Changan Automobile's Private Placement on Minority Shareholders' Rights and Interests

Based on the collected public information, this article analyzes the impact of Changan Automobile’s private placement on minority shareholders’ rights and interests.

According to public information, Changan Automobile (000625.SZ) issued an announcement on December 29, 2025, terminating the 2024 private placement of shares to specific targets and planning the 2025 private placement plan [1].

Indicator	Value
Total share capital before issuance	9.914 billion shares
Planned issuance quantity	630 million shares
Total share capital after issuance	10.544 billion shares
Controlling shareholder’s shareholding ratio after issuance	38.95% (up from 35.07%) [1]

• Original shareholders’ stake will be diluted from 100% to approximately 94.02%
• Per share dilution ratio is approximately 5.98%
• Earnings per share (EPS) will be diluted by the same ratio [0]

According to general principles of private placement, the impact of adjusted private placement price on minority shareholders is two-sided:

1. Dilution of net assets per share
   • If the private placement price is lower than the market price, the net asset contribution per share of the new capital is lower than the level held by original shareholders
   • Will pull down the net asset value per share of all shareholders

2. Potential suspicion of interest transfer
   • Price adjustment allows specific targets (usually major shareholders or related parties) to obtain shares at a lower cost
   • Minority shareholders have to hold shares at a higher market price, and their rights and interests are relatively weakened

1. Reduced investment threshold
   • Lower private placement price may attract more funds to participate
   • Conducive to the smooth completion of the private placement, avoiding issuance failure due to excessively high price

2. Guarantee of funds for company development
   • Raised funds to support project development may bring long-term growth
   • Indirectly beneficial to the interests of all shareholders

According to the announcement, China Changan Automobile’s shareholding ratio will increase from 35.07% to 38.95% after issuance, but the company’s control will not change [1]. This means:

• The position of the controlling shareholder is further consolidated
• The voice of minority shareholders is relatively reduced
• In decisions such as related transactions, the influence of minority shareholders may be further weakened

• Pay attention to the final determination of the private placement price, and be alert to cases where the price is significantly lower than the market price
• Pay attention to the use of raised funds and expected returns
• Evaluate the dilution pressure of the private placement on short-term stock prices

• The company’s business operations are normal and will not have a major impact on production and operations [1]
• Raised funds may support the development of strategic projects such as new energy and intelligent driving

Since the private placement plan is still in the planning stage, specific details of price adjustment have not been announced yet. Investors are advised to pay close attention to the company’s subsequent announcements and the discount margin of the private placement price relative to the market price to evaluate the actual impact on their own rights and interests.

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[1] Shanghai Securities News - Chongqing Changan Automobile Co., Ltd. Announcement on Changes in Shareholders’ Rights and Interests Due to Private Placement of A-Shares to Specific Targets (https://paper.cnstock.com/html/2025-12/30/content_2164226.htm)

[2] Changan Automobile Terminated 2024 Private Placement and Planned 2025 Private Placement Announcement (https://www.cfi.net.cn/p20251229004279.html)

[0] Jinling API Market Data