Geely officials have announced that it will become a trend for traditional IPO car companies in the United States to ＂create a second generation＂ listing.
A piece of paperIt opened the curtain of its high-end smart electric brand’s independent IPO.
On December 13th, (00175.HK) announced on the Hong Kong Stock Exchange that Krypton had submitted a draft registration statement for possible initial public offering to the SEC on December 7th, 2022 on a confidential basis.
According to the announcement, the proposed spin-off content currently includes two items, namely, the sale of krypton shares in the United States and the physical way toDistribute American Depositary Shares. On the date of this announcement, the number and amount of American Depositary Shares proposed for sale and sale in the IPO have not been determined.
The day before, it was reported that Krypton sought to raise more than 1 billion US dollars (about 6.9 billion yuan) in the United States, with a valuation of more than 10 billion US dollars (about 69 billion yuan), which was higher than the 9 billion US dollars when it raised funds for the first time last year.
Krypton independent spin-off listing
It is believed that the proposed spin-off is in the overall interests of shareholders, which will enable investors to better evaluate the Group and focus on retaining business, and at the same time provide Krypton with continuous direct and independent access to the equity and debt capital markets when necessary. In view of the industry trend and based on the evaluation of the business and operation of the Group and Krypton, it is suggested that the spin-off will enhance the value of Krypton, enable Krypton to develop independently and fully release its potential, thus benefiting shareholders.
In fact, the news that Krypton will be listed independently has a long history.
Krypton was established in March 2021, and was jointly invested by Geely Automobile and Geely Holding Group. As early as last August, when we completed the $500 million Pre-A round of financing, Yuan Jing, CFO of Extreme Intelligence Technology, said that there is no clear IPO plan at present, but it does not rule out participating in the capital market in various forms in the future.
After more than a year of development, on October 31st this year, Geely Automobile announced that it proposed to split Krypton and list it independently, and the Stock Exchange has confirmed that the company can carry out the proposed spin-off, but the terms of the proposed spin-off (including listing location, sale scale, price range and the company’s shareholders can get Krypton)The guaranteed quota of) has not yet been determined.
As the "second growth curve" of Geely’s electrification, Krypton is becoming the high-end of Geely.As a new force in the market, the sales volume of Geely Automobile increased from 3.5% in the first half of 2021 to 17.9% in the first half of this year.
At present, the main model of extremely krypton is extremely krypton 001. In November this year, extremely krypton delivered 11,000 vehicles. After the first delivery in October, it broke through 10,000 vehicles again, and achieved a month-on-month growth for five consecutive months. In the first 11 months of this year, the cumulative delivery of krypton has reached 66,600 vehicles, and there is almost no suspense in achieving the goal of selling 70,000 vehicles annually.
In addition, in November this year, Extreme Krypton launched its second product, Extreme Krypton 009, aiming at pure electricity.MPV is expected to be delivered in January next year.
An Conghui, CEO of Extreme Smart Technology, said that in the first half of this year, it was extremely gross.It will reach about 5%, and the gross profit level will be further improved on the basis of delivering 50,000 vehicles in the second half of the year.
It is worth mentioning that Krypton is not the first brand listed independently by Geely. In October 2021, Volvo Cars announced that it wasInitial public offering of Stockholm Stock Exchange; In June this year,(Polestar) merged with SPAC (Special Purpose Acquisition Company) Gores Guggenheim and landed in the United States; The application statement for Geely’s Yikatong Technology to use the listing plan of SPAC company CovaAcquisitionCorp in the United States has been announced by the US regulatory authorities. It is expected that the listing of SPAC will be completed by the end of this year, with a valuation of about 3.8 billion US dollars.
It is becoming a trend for traditional car companies to "create the second generation" to go public.
In fact, as a business with huge initial investment and long payback period, car-making has to go through mass production-sales climbing-scale effect highlighting-gross.Turn positive-The long process of becoming a full member-returning to the original position.
Even "Wei Xiaoli", whose sales volume has risen and gross profit margin has turned positive, has not yet achieved profitability under the continuous R&D investment and market layout. Although in the eyes of many people, the new brand born out of traditional car companies is not bad, but the cruel fact is that at present, exceptandIn addition, basically all brands have not yet formed a certain hematopoietic capacity.
Chairman Ceng Qinghong hit the nail on the head-"At present, all new energy automakers are losing money and have no money to earn. This is a consensus."
The cumulative loss of GAC Ai ‘an in 2019-2021 was nearly 2.7 billion yuan; Lantu Automobile, a subsidiary of Dongfeng, has been in a state of loss since its establishment in June last year. By June 30 this year, the accumulated net loss was 1.443 billion yuan, and the average monthly net loss exceeded 100 million yuan.
According to the financial report data released by Geely Automobile, the revenue in 2021 was 2.868 billion yuan, and the net loss in the same period reached 1.01 billion yuan; In the first half of this year, Krypton’s revenue was 8.828 billion yuan, and the net loss during the period was 759 million yuan. Since the establishment of the brand, the accumulated net loss of Krypton is nearly 1.8 billion yuan.
In An Conghui’s view, "smart electric vehicles don’t make money at first, but with the growth of sales and the formation of branding and scale, enterprises can gradually make profits."
Therefore, for the new car-making enterprises that are generally in a state of burning money crazily and have not yet achieved balance of payments or even profits, they are facing the domestic market.The fierce competition in the city needs more funds for production investment, technology research and development, brand building, digital marketing, channel expansion, etc. Financing and listing have become one of the means for many new car manufacturers to get more funds. Since this year, many traditional car companies have released listing plans.
Insiders of GAC Ai ‘an revealed to 21st century business herald that GAC Ai ‘an, which has completed the A round of financing, plans to make an IPO next year and strive to become the first new energy vehicle in science and technology innovation board; Tamia Liu, co-CEO of Zhiji Automobile, has repeatedly publicly stated that the company’s public financing is already under planning, and there will be A-round, B-round and C-round financing plans, as well as very clear listing plans; In addition, it is reported that Feifan Automobile, a subsidiary of SAIC, also has an independent IPO plan.
In November this year, Lantu Automobile completed a round of financing of 5 billion yuan, and the valuation of Lantu Automobile after financing was about 30 billion yuan. Lu Fang, CEO of Lantu Automobile, said that Lantu Automobile will continue to carry out subsequent rounds of financing according to actual development needs and market conditions. At the same time, it will also consider the follow-up IPO plan based on the market and regulatory policies.
It is worth mentioning that if the company, which was established less than two years ago, successfully goes public in the United States, it will become the fastest listed new car-making enterprise. beforeIdeal, Tucki took about four to five years from its establishment to landing in the US stock market, and successfully went public in Hong Kong in September this year.It took nearly seven years.
In the eyes of the industry, the current capital market is becoming more and more rational for intelligent electric tracks. In order to obtain financing, simple storytelling is difficult to maintain, and it needs to be matched with actual products and technologies. "In contrast, the new energy brands hatched by traditional car companies do not have too many historical burdens. They are good at absorbing new management models and focusing on new energy, autonomous driving and other tracks, which has certain appeal to industrial capital."