(Yicai) Feb. 21 -- Chinese home appliance giant Haier Group will invest USD1.8 billion to acquire a majority stake in Autohome, China’s largest online automobile sales and information service platform, from Ping An Insurance Group. The move aims to enhance the scope and quality of services offered through Haier’s automotive service platform.

Cartech has reached an agreement with Yun Chen Capital, a subsidiary of Ping An, to acquire 200.9 million shares, which is equivalent to a 41.9 percent stake, in Autohome, according to announcements issued separately by Qingdao-based Haier and Autohome yesterday.

After the deal is completed, Yun Chen’s holdings will be diluted to 5 percent of total shares, or around 23.9 million shares, the two parties said.

Haier set up Cartech, which is engaged in car customizations, used car trading, and smart charging services, in 2021 to expand into the digital economy sector.

After this transaction, Cartech and Autohome will link arms in areas such as user experience, smart hardware and new retail for automobiles, which will help enhance Autohome's services, Haier said.

Ping An will continue to deepen its tie-up with Autohome in after-sales services and offline marketing to support the Beijing-based company's future development, Haier added. The Shenzhen-based firm paid USD1.6 billion in 2016 to purchase a 47.4 percent stake in the company from Australian telecommunications giant Telstra, becoming its largest shareholder.

Autohome’s net profit plunged 14 percent last year from the year before to CNY1.6 billion (USD221.9 million), according to its financial report released yesterday. Net revenue dipped 2 percent to CNY7 billion (USD964.4 million).

Autohome appointed a new executive director and chief executive officer, Yang Song, yesterday, following the resignation of Wu Tao, said the firm, which was founded in 2005 and went public on the New York Stock Exchange in 2013.

Yang has over 20 years of experience in the automotive industry in both China and the US. He joined Autohome in October 2021 as senior vice president, overseeing multiple business areas, including new retail and used cars.

Autohome’s share price [NYSE: ATHM] climbed 0.2 percent to USD30.18 yesterday, while its Hong Kong-listed stock [HKG: 2518] closed down 3.3 percent to HKD58.00 (USD7.46) today.

Editor: Kim Taylor