Changshu Automotive Trim Plans to Establish Smart Cockpit Subsidiary in Spain With Total Investment of 24 Million Euros

On August 2nd, Jiangsu Changshu Automotive Trim Group Co., Ltd. (hereinafter referred to as "Changshu Automotive Trim") announced that, based on its strategic planning and the development needs of its overseas business, the company intends to establish a wholly-owned subsidiary in the Zaragoza region of Spain through Changshu Automotive Trim (Luxembourg) Co., Ltd. (hereinafter referred to as "Luxembourg Company"), a wholly-owned subsidiary of its wholly-owned subsidiary Changshu Automotive Trim (Hong Kong) Co., Ltd. The tentative name of the subsidiary is "Changshu Automotive Trim (Spain) Intelligent Cockpit Co., Ltd." (hereinafter referred to as "Spain Company").

Image source: Screenshot of the company announcement

The new company is a limited liability company with a total investment of 24 million euros, funded by Changshu Automotive Trim using its own funds. Upon completion of this investment, the Luxembourg company will directly hold 100% equity of the Spanish company, and Changshu Automotive Trim will be the ultimate shareholder with 100% equity penetration in the Spanish company.

The business scope of the new company includes the production, sales, and trade of automotive intelligent cockpits, components, molds and inspection tools, and automation equipment (the specific business scope is subject to registration with the local competent authorities).

Changshu Automotive Trim Co., Ltd. stated that this foreign investment is based on the needs of the company's overseas business development and strategic planning. It aims to better serve the company's international clients, continuously expand new business in overseas markets, and enhance the company's comprehensive competitiveness in the European market. This aligns with the company's long-term strategic development plan and is in the interests of the company and all its shareholders. The newly established Spanish company will be a wholly-owned subsidiary of the company and will be included in the consolidated financial statements of the listed company. Upon completion of this foreign investment, there will be no new related-party transactions or competition within the same industry for the listed company.

It is worth noting that this outbound investment matter is still subject to overseas investment filing, and there is uncertainty regarding whether it can obtain approval from the relevant authorities and the time required to complete the filing.

Changshu Automotive Trim also mentioned that there are significant differences between overseas and domestic laws and regulations, industry policies, business environments, and other aspects. The new company may face risk factors arising from various aspects such as the international environment, industry policies, market competition, operations management, finance, technology, environmental protection, and organizational implementation. The future development and profitability of the overseas company are subject to uncertainty.