(Yicai Global) July 24 -- Chinese car parts maker Lingyun Industrial will put EUR120 million (USD133.8 million) more into its German subsidiary Waldaschaff Automotive, a supplier to Porsche's investment arm and BMW, to spur the unprofitable unit's development of lightweight auto components.
Lingyun will increase Waldaschaff Auto's capital in three phases: EUR50 million within this year and EUR70 million next year as well as in 2021, the Xi'an-based company said in a statement.
Lingyun acquired Waldaschaff Auto in September 2015 for EUR1 (USD1.10) and took over the original shareholders' loans. It invested EUR55 million in the Bavarian firm at the beginning of last year.
The capital increase aims to secure Waldaschaff Auto's normal operation, repayment of loans and new equipment purchases, the statement added. The new energy vehicle battery casing products that the German firm has developed have expanded Lingyun's product portfolio to facilitate the latter's transformation to sell lightweight car parts internationally, it added.
At the end of the first quarter, Waldaschaff Auto had CNY1.5 billion (USD220 million) of total assets while its liabilities rose to CNY1.3 billion. It accrued a net loss of CNY22.8 million (USD3.3 million) on revenue of CNY230 million.
Waldaschaff Auto provides BMW and Porsche Automobil Holding with structural parts, crash management systems, and battery parts for NEVs.
Lingyun's [SHA: 600480] stock price rose 1.5 percent this morning to CNY8.20 (USD1.20).
Editor: Emmi Laine