On October 26, value investor Duan Yongping posted on the social platform Xueqiu, highlighting a community question about an unnamed new energy vehicle company that arranged external financing for its chip subsidiary and reserved nearly 30% of the unit’s equity for internal incentives.
The question Duan shared said the chip unit had been incubated through long-term investment by the parent company, with historical research and development costs borne by the parent. Following the move, the parent’s ownership in the subsidiary reportedly fell from 100% to “over 70%.” The user asked how to evaluate such a decision and whether leading companies such as Apple would structure core new businesses in a comparable way.
Duan did not identify the company or offer his own assessment in the post, presenting the issue for discussion instead. The post did not provide additional details such as valuation, transaction terms, or the rationale behind the changes.
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