Changan Auto Establishes AD Synergy Department, Marking Substantive Integration of Avatr and Deepal

First Financial News has exclusively learned that the integration of Changan Automobile's two brands—Deepal and Avatr—has entered a substantive implementation phase.

New Coordination Department Established

Changan Automobile has announced the formation of the AD (Avatr + Deepal) Collaborative Development Department, designated as a first-level department. Under this department, several second-level units have been established, including:

• Planning and Cooperation Department
• Market and Product Department
• Human Resources Shared Center
• Financial Shared Center
• General Affairs Department

These units will undertake corresponding business tasks delegated by Deepal and Avatr.

Shared and Collaborative Centers Proposed

Changan Automobile has also recommended that Avatr establish multiple shared or collaborative centers in areas such as:

• Styling and design
• Product development
• Platform technology

These centers are expected to handle related business delegated by Deepal. Meanwhile, Deepal has been instructed to dissolve several business units and their subordinate organizations.

Strategic Integration Plan

In April of this year, Changan Automobile unveiled an integration plan aimed at promoting comprehensive strategic collaboration between its new luxury brand Avatr and its mid-to-high-end new energy brand Deepal. The goal is to build a mid-to-high-end brand cluster with annual global sales exceeding 1.5 million units, with overseas sales accounting for over 40%.

During a media briefing, Changan Automobile Chairman Zhu Huarong emphasized "two no-changes" and "two shares":

• Two no-changes: Strategy remains unchanged; brand operations remain unchanged.
• Two shares: System capabilities are shared; technology supply chain and other resources are shared.

Impact on Avatr's IPO

The integration of Avatr and Deepal comes at a time when Avatr is preparing for its initial public offering (IPO). The advancement of the integration structure may affect the timeline of Avatr's IPO.

On the evening of June 30, the Hong Kong Stock Exchange website disclosed that Avatr Technology had updated its prospectus and resubmitted its Hong Kong IPO application. Under Hong Kong Stock Exchange rules, the current prospectus will expire at the end of this year. In May, Avatr's first prospectus, submitted in November 2025, had already expired after reaching its six-month validity period.

Company Statements

At a media briefing in August, Chen Zhuo, President of Avatr Technology, told First Financial News and other media that the company's IPO process is progressing steadily in accordance with regulatory requirements, and no further details are available for release at this time.

Earlier, during an April briefing, when asked whether the strategic restructuring with Deepal would affect the company's IPO, Chen Zhuo stated that the Hong Kong listing plan of "Avatr Technology" as a corporate entity would not be impacted.

No Response Received

First Financial News recently sought confirmation from Avatr regarding the establishment of the AD Collaborative Development Department. As of press time, no response had been received.