Cango Subscribes for Less than 2% of CHJ's Equity
COVID-19 and China
CHJ's Model. PHOTO: Credit to CHJ

According to TMTPOST, after the B round of financing, CHJ completed the B+ round of CNY 1 billion of financing, most of which came from the old shareholders. In addition, CHJ is setting up a VIE structure and plans to introduce U.S. dollars fund in series C financing.

However, CHJ's current response to the news is' uninformed '.

Coincidentally, auto finance services platform Cango released its 2018 earnings report this morning. It was mentioned in the report that, Cango and other investors signed an investment agreement with CHJ in January 2019. Cango is an auto financing service platform and will pay CNY 200 million in cash for a less than 2% stake in CHJ, which can also be judged from the current valuation of CHJ is about CNY 10 billion in the capital market.

As of the end of last year, Cango connected 46,565 registered auto dealers, 12 third-party financial institutions and 40 other industry players, including OEMs, online advertising platforms, insurance companies and insurance brokers, providing auto financing services to 1,065,700 car buyers since its inception.

Cango said that based on the good prospect of new energy vehicles in China in the future, it believes that the investment in CHJ will help the two sides form strategic synergies in the field of new energy vehicle finance and services, and further improve the company's business layout in the Chinese auto market.

CHJ is a smart transportation startup mainly engaged in "small and beautiful smart electric vehicles", providing research and development and services of future smart transportation tools.

On September 8, 2017, CHJ completed the A3 round of financing of CNY 620 million, LEO shares (利欧股份) increased its capital by CNY 100 million with its own capital. After this capital increase, the company will hold 9.9950% of the equity of CHJ. According to CHJ,the purpose of this financing for CHJ is to raise funds for the research and production of SUV and for the second production base.

CHJ's series B financing took place on March 22, 2018, and the amount of series B financing is CNY 3 billion. CHJ has raised a total of CNY 5.755 billion together with previous angel rounds and A round of financing. While announcing the series B financing, CHJ also announced a strategic cooperation with the travel giant DIDI. The two sides will set up a joint venture company to produce intelligent electric vehicles customized for Shared travel scenarios. At the same time, the two sides will also cooperate in intelligent network connection, autonomous driving, intelligent fleet operation and other fields.

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