By Li Guozheng | Edited by Yang Lu | Produced by Bangning Studio (gbngzs)

"As a listed company, Changan Automobile is obligated to announce any change in its shareholder's name, which explains yesterday's announcement," an insider explained on June 24, emphasizing that "it's not about renaming Changan Automobile, nor is it the name of a new central enterprise."

The "name change" she mentioned pertains to Changan Automobile's controlling shareholder, while the "new central enterprise" refers to its indirect controlling shareholder.

On the evening of June 23 this year, Changan Automobile announced that it had received notification from its controlling shareholder, China Changan Automobile Group Co., Ltd. (hereinafter referred to as "Changan Group"), that its name had been changed to "Chenzhi Automobile Technology Group Co., Ltd." (hereinafter referred to as "Chenzhi Group"), with all relevant industrial and commercial registration formalities completed and a new business license obtained.

Regarding the indirect controlling shareholder, Changan Automobile announced on June 5 that it had received notification from China South Industries Group Corporation (hereinafter referred to as "CSGC") that, with the approval of the State Council, CSGC would undergo a split, resulting in a change in the company's indirect controlling shareholder to a central enterprise focused solely on the automobile business, though the actual controller remains unchanged.

Since February this year, the direction of Changan Automobile has been a focal point of social attention, with numerous rumors circulating over the past five months. Despite two major announcements of changes within this month, the ultimate ownership of Changan Automobile – who it is and what it does – remains shrouded in mystery.

● Puzzle 1: The indirect controlling shareholder remains unclear.

The National Enterprise Credit Information Publicity System, established under the leadership of the State Administration for Market Regulation, is the most authoritative source for confirming a company's basic information, including its name, shareholders, and capital contributions.

With a delay of about one day in updates, Bangning Studio logged into the system on June 25 and found that Changan Group's name had indeed been changed to "Chenzhi Automobile Technology Group Co., Ltd.," now serving as Changan Automobile's controlling shareholder.

The shareholders of Chenzhi Group are the indirect controlling shareholders of Changan Automobile.

According to the June 5 announcement, Changan Automobile's indirect controlling shareholder would change to a central enterprise focused solely on the automobile business.

However, as of June 25, the national publicity system indicated that the shareholder of Chenzhi Group – i.e., Changan Automobile's indirect controlling shareholder – was still CSGC and had not been changed to a "central enterprise focused solely on the automobile business."

This suggests that the ultimate ownership of Changan Automobile, or the identity of its indirect controlling shareholder, remains a mystery at present.

Another question arises: why was the name of the direct controlling shareholder changed this time, rather than the indirect controlling shareholder, as announced?

Bangning Studio believes there must be a connection between the renaming of Changan Group to Chenzhi Group and the upcoming new central automobile enterprise. For instance, the original name "China Changan Automobile Group Co., Ltd." might be reserved for the new central enterprise.

Otherwise, what is the significance of changing Changan Group's name at this juncture?

Additionally, Bangning Studio noticed that Chenzhi Group has yet to publish its 2024 corporate annual report on the National Enterprise Credit Information Publicity System, which is due within 5 days, by June 30.

According to relevant national regulations, failure to publish an annual report on time will result in a company being listed as operating abnormally and subject to joint disciplinary action by relevant departments. Even if subsequently reported and removed, it will still leave a negative credit record.

● Puzzle 2: Whether the renaming to "Chenzhi" paves the way for future developments.

The renaming of Changan Automobile's controlling shareholder involves two notable changes: the adoption of the name "Chenzhi" and the addition of the word "Technology".

Regarding the name, some believe that "Chenzhi" derives from the pinyin (or English) of Changan.

However, it's not that straightforward.

After querying the National Enterprise Credit Information Publicity System, Bangning Studio found that "Chenzhi" was not chosen arbitrarily but had precedents, suggesting that this name was selected to facilitate subsequent actions.

Chenzhi Group's registration and change of registration authority are handled by the Beijing Municipal Market Supervision Bureau. The publicity system shows no special significance for enterprises named "Chenzhi" in the Beijing area.

The anomaly lies in Chongqing.

According to the National Enterprise Credit Information Publicity System, on November 25, 2022, the original Changan Group registered and established Chenzhi Technology Co., Ltd. in Bishan District, Chongqing, with a registered capital of 260 million yuan, which was increased to 360 million yuan on January 16, 2024.

Although the original Changan Group subsequently registered related subsidiaries with the name "Chenzhi" in Chongqing, based on the timeline, the renamed Chenzhi Group's "Chenzhi" likely originates from Chenzhi Technology Co., Ltd.

Furthermore, Chenzhi Technology Co., Ltd. in Chongqing, in addition to contributing the new name to its parent company in Beijing, may also influence Chenzhi Group's operations and even that of the new central enterprise.

One reason is that Chenzhi Technology Co., Ltd. has recently undergone significant changes. On May 28 this year, the company expanded its share capital and increased its shareholders from one to three. The original Changan Group, now Chenzhi Group, holds a 65% stake. The two new shareholders are Guangzhou Automobile Parts Co., Ltd., which subscribed for a capital contribution of approximately 166 million yuan, holding a 30% stake, and Chongqing Changan Automobile Co., Ltd. (commonly known as Changan Automobile), which subscribed for a capital contribution of 27.692308 million yuan, holding a 5% stake.

Chenzhi Technology Co., Ltd.'s primary business includes engineering and technology research and experimental development, automotive parts research and development, and accessories manufacturing. Previously, on March 28, 2024, the original Changan Group transferred all the equity of its two wholly-owned subsidiaries, Chenzhi (Chengdu) Intelligent Suspension Co., Ltd. and Chenzhi (Chongqing) Brake System Co., Ltd., to this company, making Chenzhi Technology Co., Ltd. the parent of two subsidiaries.

"Chenzhi Technology is performing well and is quite renowned among the subsidiaries of the original Changan Group. It enjoys a high reputation in their circle," the aforementioned insider told Bangning Studio.

She believes that: "Changan Group's renaming to Chenzhi Automobile Technology Group might be because the name 'Chenzhi' already has a certain level of fame, and they didn't want to waste it, so they directly adopted it for the group's new name."

This indirectly explains why Guangzhou Automobile Group's subsidiary, Guangzhou Automobile Parts Co., Ltd., joined Chenzhi Technology Co., Ltd., a subsidiary of the original Changan Group, and holds a 30% stake.

So, why was the word "Technology" added to Chenzhi Group's new name?

"China Changan Automobile Group Co., Ltd. was renamed Chenzhi Automobile Technology Group Co., Ltd. to attract more automakers like FAW, BAIC, GAC, Huawei, Xiaomi, JAC, etc., and include new energy powertrains, chassis, electronic controls, etc. Therefore, the word 'Changan' was no longer used to avoid objections from other automakers. In the future, it may even consider an independent listing," speculated some media personnel.

However, these are merely interpretations by outsiders.

What strategy is Chenzhi Group and the new central enterprise pursuing? What is the deeper meaning behind Guangzhou Automobile Parts Co., Ltd.'s involvement, the group's renaming to Chenzhi, and the addition of the word "Technology" to its name?

Perhaps, only when Changan Automobile's indirect controlling shareholder – the new central enterprise – lifts the veil of mystery will the accurate answers to these questions emerge.