Changan Auto Lists 10% Stake in Avatr for Transfer at Floor Price of 3.183 Billion Yuan, Seeking Strategic Investor to Support Overseas Expansion
nashnova research
Changan Auto listed a 10% stake in Avatr Technology for sale at a floor price of RMB 3.183 billion, implying a full valuation of roughly RMB 31.8 billion; the proceeds go to Changan — not to Avatr — as the automaker seeks a strategic partner to help the EV brand expand abroad.
What exactly is being sold?
Changan Auto listed 10% of Avatr Technology on the Shanghai United Assets and Equity Exchange at a floor price of RMB 3.183 billion. The disclosure window runs through December 10.
These are existing shares held by Changan. The sale proceeds go to Changan, not Avatr. This means → Avatr's own balance sheet receives nothing from this deal; it is a shareholder-level capital move, not a company-level fundraise.
Prospective buyers must post a RMB 500 million deposit, pay the full price in one lump sum, and commit not to interfere with Avatr's planned IPO.
How does the shareholder lineup change?
After the sale, Changan's direct stake drops from 40.99% to 30.99%, but it remains the largest shareholder.
CATL (宁德时代) currently holds about 9.17%, making it the second-largest direct holder. In plain terms = if a single new buyer takes the entire 10% block, it would leapfrog CATL into the number-two seat.
At the floor price, Avatr's implied full valuation is roughly RMB 31.83 billion — in line with its late-2024 Series C round, with no premium or discount.
Why is Changan selling now?
At Avatr's founding, Changan held 95.38%. Successive funding rounds diluted that to 40.99%, and in the 2024 Series C alone Changan contributed about RMB 4.55 billion to maintain its share. This means → Changan has already committed substantial capital to Avatr; this sale recovers part of that outlay.
Changan said it wants the incoming investor to help Avatr build premium-brand channels and expand overseas, while Changan continues to supply R&D, manufacturing, and supply-chain support.
In April this year Changan proposed that Avatr and its sibling brand Deepal share R&D and supply-chain resources, while keeping both brands distinct. This reflects an internal consolidation drive to cut duplicate spending.
What does Avatr's own P&L look like?
In 2025 Avatr reported revenue of RMB 25.63 billion, up 68.7% year-on-year. Gross margin rose from 6.3% to 9.4%, and the full-year net loss narrowed from RMB 4.02 billion to RMB 3.49 billion.
Yet full-year gross profit of RMB 2.42 billion still fell short of the RMB 3.28 billion spent on sales and marketing. In plain terms = the gross profit from selling cars does not yet cover the cost of marketing them.
R&D spending climbed to RMB 2.09 billion. Combined with marketing costs, Avatr's cash burn rate remains high.
Can sales volume and cash flow hold up?
Avatr delivered 7,056 units in October, down 13.8% from September's 8,183 and nearly 48% below the 13,506 delivered in October last year — a clear sign of volume pressure.
As of late April, Avatr held RMB 6.25 billion in cash and equivalents, down sharply from RMB 19.32 billion at the end of 2024. This means → roughly RMB 13.1 billion drained in under half a year; the prospectus attributes this mainly to paying for an equity stake in Huawei's Yinwang (引望) unit.
Put simply = Avatr's cash is being consumed rapidly. If the Hong Kong IPO cannot raise funds in time, the company's liquidity will come under serious strain.
What are the key questions ahead?
Avatr first filed for a Hong Kong main-board listing in November 2025 and re-filed with updated materials in June this year. Planned use of proceeds: technology R&D, domestic channel operations, and overseas sales networks.
In 2025, overseas revenue accounted for just 5.5% of total sales. Expanding abroad still requires building local sales and service infrastructure from scratch.
After the December 10 disclosure window closes, the buyer's identity and final price will be revealed. This reflects two open questions running in parallel: who takes the stake and at what price, and whether the Hong Kong IPO can close successfully to replenish Avatr's war chest.
市场有风险，内容仅供研究参考，不构成投资建议。