Under the new round of capital and industry competition, whether it can be listed has become a watershed for the new forces of car making. Following “Wei Xiaoli”, the fourth new car making power company is “riding on the horse” — this time a Zero run car supported by security giant Dahua.
On March 17, Zhejiang lingpao Technology Co., Ltd. submitted a listing application to the Hong Kong stock exchange. The co sponsors of this IPO are China International Capital Corporation Limited(601995) , Citigroup, JPMorgan Chase and CCB international. According to incomplete statistics by the reporter of Securities Daily, so far, zerocar has received investments from Sequoia China, Shanghai Electric Group Company Limited(601727) , Crrc Corporation Limited(601766) , Gefei assets, Jiuzhi investment, Yijing capital, Heda investment, CICC and other well-known financial and industrial investors, with a total amount of at least 10 billion yuan.
As we all know, the sustainable development of new forces of car making requires more funds in order to maintain the R & D and launch of subsequent models and the expansion of market scale. Following the mass production test and monthly sales competition, the midfield battle of listing and financing has begun, and Hong Kong stock IPO has become the common choice of the new forces.
Application for listing in Hong Kong
2022 will continue to generate net losses
Statistics show that Zero run automobile was founded in July 2015, and its CEO Zhu Jiangming is one of the founders of security giant Zhejiang Dahua Technology Co.Ltd(002236) and a technology R & D background. After seeing the wave of electric vehicles, Zhu Jiangming founded zero running cars with the support of Dahua and poured into the tide of new cars.
The application shows that in the past three years, Zero run car has delivered three models, namely intelligent pure electric coupe S01, intelligent pure electric mini car T03 and medium-sized intelligent pure electric suvc11, and plans to launch eight new models at the speed of one to three models per year by the end of 2025. In 2021, Zero run vehicles delivered 43748 electric vehicles in total, with a year-on-year increase of 443.5%.
It can be seen from the delivery data that among all the car types sold at present, zero running T03 is still the main force to support the sales volume. As of December 31, 2021, 46000 vehicles had been delivered, and more than 10000 vehicles had been delivered in a row since the third quarter of last year.
The reporter of Securities Daily found that the main income of zero running vehicles comes from the sales of electric vehicles and parts. From 2019 to 2021, the total revenue of Zero run automobile was 117 million yuan, 631 million yuan and 3.132 billion yuan respectively. Among them, the sales revenue of automobile and parts is about 117 million yuan, 616 million yuan and 3.058 billion yuan.
According to the application, the sales revenue of automobiles and parts increased by 396.7% from 2020 to 2021, mainly due to the significant increase in the sales of T03 and C11 delivered in 2020. However, the sharp rise in revenue did not turn the Zero run car into a loss. The data show that in the past three years, the net loss of zero running vehicles has been expanding, which are 901 million yuan, 1.1 billion yuan and 2.845 billion yuan respectively, and the gross loss is 112 million yuan, 319 million yuan and 1387 million yuan respectively. The application also points out that due to the R & D investment of new models and the expansion of production facilities and sales network, it is expected to continue to have a net loss in 2022.
In terms of R & D, up to now, Zero run automobile has more than 1000 R & D personnel, accounting for 33.9% of the company’s total employees. The R & D expenditure of Zero run automobile in 2019, 2020 and 2021 was 358 million yuan, 289 million yuan and 740 million yuan respectively. Zero run automobile said in its prospectus that the net funds raised from the IPO will be mainly used for R & D, improving production capacity, expanding business and enhancing brand awareness, as well as working capital and general corporate purposes.
car making money has a long way to go
raise funds and exchange time for space
In recent years, new car manufacturers have successfully landed in the capital market and even achieved “dual board” listing, which has been given a high valuation by the market, which not only stimulated the listing desire of other car manufacturers, but also intensified the industry competition.
Gao Yunpeng, director of China Shanxi Guoxin Energy Corporation Limited(600617) automobile industry innovation alliance, told reporters that the logic and timeline of the development of new forces enterprises are different from those of traditional automobile enterprises. Traditional automobile enterprises that transform into new energy vehicles may find it difficult to accept losses and will choose to actively shrink and stop losses. The previous shutdown of Euler black cat is an example. However, for new car manufacturing enterprises, after reaching an agreement with investors, a certain amount of “burning money” is necessary and understandable.
The reporter of securities daily observed that even Weilai, with good sales and reputation, had a net loss of nearly 30 billion yuan from 2018 to the first three quarters of 2021. However, by means of financing and listing, Weilai exchanged funds for time and development space.
Looking back on the development history of new energy vehicles, “Wei Xiaoli” obtained funds and ammunition by virtue of the first batch of listing in the United States, and opened the crazy era of domestic new energy vehicles with the support of national policies. With the re listing of “Wei Xiaoli” in Hong Kong stocks, the story of the first birthday of new forces from 0 to 1 will be turned over, and a new round of enterprise development, market competition and capital competition will be launched.
“At present, the uncertainty in the capital market has increased, especially the China concept shares have been seriously underestimated in the US capital market. For the sake of safety, the new forces have generally taken the action of accelerating the listing in Hong Kong.” Gao Yunpeng believes that the return of Hong Kong stocks can provide investors with more circulation and trading channels.
It is generally believed in the industry that for the new forces such as Nezha, Zero run and Weima who have excellent market performance and intend to list in Hong Kong, they should try to speed up the change of the situation after opening the market in front of a large number of strong players. This will test their R & D ability, product rhythm, brand maintenance and other comprehensive strength.
