On January 24, Chongqing Chang’an New Energy Vehicle Technology Co., Ltd. (hereinafter referred to as “Chang’an new energy”) completed the signing of round B financing, raising a total of about 4.977.3 billion yuan. With the completion of round B financing, Chang’an new energy also gave a clear date for IPO. Since 2020, driven by new car making forces such as Weilai and Xiaopeng, capital has once again poured into the field of new energy car making. Traditional car companies such as Geely and Dongfeng have also issued IPO signals in order to transform to new energy. If Chang’an new energy can successfully complete the IPO, it will further open up the financing channels of the capital market and “store grain” for its subsequent development. With the continuous injection of capital, how to go next has also become the focus of the industry.
nearly 2 billion yuan over the plan
One week after the announcement of determining the investor was released, the round B financing of Chang’an new energy finally landed.
In April last year, Chang’an new energy officially launched round B financing, which was originally planned to raise 3 billion yuan. After less than a year, the round B financing of Chang’an new energy finally ended with 4.977.3 billion yuan. It is understood that 10 enterprises including Chongqing Changan Automobile Company Limited(000625) have invested in this financing. The relevant person in charge of Chang’an new energy disclosed that after nearly 200 negotiations and three rounds of screening, nine investors were determined. Then, after several rounds of communication, the delisting of investment institutions was finally completed on December 23 last year.
Among them, Chongqing Changan Automobile Company Limited(000625) increased capital by 1.36 billion yuan (giving up the right to increase capital in the same proportion), southern assets by 710 million yuan, BOCOM Boyu No. 1 by 1 billion yuan, Chengyuan fund by 700 million yuan, Wuhu Xinshi Xinhong by 500 million yuan, CICC Keyuan fund by 200 million yuan, southern industry fund by 180 million yuan and southern industrial intelligent travel fund by 110 million yuan, Deqing mixed reform No. 2 fund increased its capital by 100 million yuan. At the same time, the incentive mechanism of employee stock ownership was also introduced. A total of 97 core backbone employees invested 117 million yuan to participate in the round B financing.
In 2011, Chongqing Changan Automobile Company Limited(000625) entered the field of new energy vehicle manufacturing. In 2018, Chang’an new energy was established with a registered capital of more than 200 million yuan. The business scope includes R & D, production, processing, sales and consulting services of new energy vehicles and auto parts; Automobile manufacturing (excluding automobile engine); Auto parts sales and other businesses.
With the completion of round B financing, Changan new energy IPO also has a clear timetable. The relevant person in charge of Chang’an new energy said: “capital is one of the essential resources for the current competition in the new energy vehicle industry, Chongqing Changan Automobile Company Limited(000625) supports Chang’an new energy to obtain development funds through equity, creditor’s rights and public listing. After completing this round of financing, Chang’an new energy plans to complete public listing around 2025, Chongqing Changan Automobile Company Limited(000625) Support Chang’an new energy to decide whether to continue the next round of financing before IPO according to development needs. “
supplementary funds
Behind stepping up financing and clarifying IPO, Chang’an new energy needs a lot of funds to support its market layout and expansion ambitions.
During the 2021 Shanghai auto show, Chongqing Changan Automobile Company Limited(000625) announced the “14th five year plan” and 2030 vision. Among them, the overall goal of Chongqing Changan Automobile Company Limited(000625) during the 14th Five Year Plan period is to transform into an intelligent low-carbon travel technology company, build efficiency and software capability as the core competitiveness, and build a “new car + new ecology” industrial company. According to the overall plan of Chongqing Changan Automobile Company Limited(000625) , more than 20 new intelligent electric vehicles will be launched within five years to meet the full scene needs of new people. It is planned that by 2025, the sales volume of Chang’an brand will reach 3 million, and the proportion of new energy will reach 35%; By 2030, it will become a world-class brand, with sales volume reaching 4.5 million and new energy accounting for 60%.
In the Chongqing Changan Automobile Company Limited(000625) plan, Chang’an new energy has become an important “settler”. To this end, in the future Chongqing Changan Automobile Company Limited(000625) will insist on investing no less than 5% of its revenue in R & D every year. At the same time, Changan new energy will release five models in succession. In addition to the c385 to be delivered this year, Deng Chenghao, general manager of Changan new energy, said: among the five models, the model code c673 is positioned as a cross-border SUV and the model code a158 is positioned as a national boutique scooter. Among them, a158 will be released from March to April this year and delivered from June to July. By 2025, the sales target of Chang’an new energy will be 700000 vehicles.
In fact, according to the new energy strategy released by Chongqing Changan Automobile Company Limited(000625) , it is expected that the sale of traditional fuel vehicles will be completely stopped by 2025 to realize the electrification of products of the whole spectrum. By 2025, it is planned to cover EV, PHEV and FCV, and a total of 25 intelligent new energy vehicles will be launched. It is planned to take the lead in realizing L3-L4 intelligent driving assistance functions on new energy vehicles and apply seven leading intelligent label technologies. This means that as an important starting point of Chongqing Changan Automobile Company Limited(000625) in the field of new energy vehicles, the development of Chang’an new energy in recent years is particularly critical.
Yan Jinghui, a member of the expert committee of China Automobile Circulation Association, said that unlike the simple sales dispute between traditional automobile enterprises, the competition among new energy vehicle enterprises has risen from the competition of enterprises, technologies, products and services to the integration of industrial chain integration ability and ecosystem construction ability. The improvement of the resource integration ability of new energy vehicle enterprises undoubtedly needs a lot of financial support. If Chang’an new energy can successfully complete the IPO, it will further open up the financing channels in the capital market and pave the way for the future layout.
According to the data, the net loss of Chang’an new energy in 2018 was 227 million yuan; The net loss in 2020 was 1.16 billion yuan. In terms of Chongqing Changan Automobile Company Limited(000625) , to develop the new energy vehicle industry well, we need to introduce new operation system, new incentive mechanism and new marketing methods through financing. Therefore, Chang’an new energy must be jointly supported by major shareholders through financing development under the new independent subject, so as to successfully realize the transformation from traditional automobile enterprises to new energy enterprises. Therefore, we need to strengthen financing and take the lead in resources, systems and mechanisms in order to remain invincible in the fierce competition in the future.
