Founder Motor plans to raise an additional capital of 1 billion yuan, and the controlling shareholder participates in the subscription

On the evening of January 25, Founder Motor disclosed the 2022 non-public issuance of A-share shares, the total amount of funds raised in the proposed non-public issuance of shares should not exceed 1 billion yuan, and the net amount of funds raised after deducting the issuance fee was intended to be used for the "annual output of 1.8 million sets of new energy vehicle drive motor project" and "Lishui Fangde Intelligent Drive Application Technology Research Institute Expansion Project", as well as supplementary working capital. Among them, the Company's controlling shareholder, Excellence Automobile Co., Ltd., intends to subscribe in cash at the same price as other subscription targets, and the proposed subscription amount is not less than 100 million yuan (including the principal amount) and not more than 300 million yuan (including the principal amount).

Founder Motor believes that as one of the leading enterprises in the field of new energy passenger car drive motors, this fixed increase is conducive to the company's continuous increase in technology research and development investment, focusing on promoting the research and development of energy-saving and new energy vehicles with market-advanced integrated technology products, and carrying out technical transformation of product manufacturing automation equipment to enhance the comprehensive market competitiveness of the company's products.

According to data from the China Association of Automobile Manufacturers, sales of new energy vehicles in China reached 3.521 million units in 2021, an increase of 157.5% over 2020. The sales volume of new energy vehicles has increased beyond expectations, driving the acceleration of the growth of the new energy vehicle drive motor market. According to EVTank, China's new energy vehicle drive motor shipments will exceed 10 million units in 2025. In addition to the growth of downstream new energy vehicle production and sales exceeding expectations, the proportion of dual-motor four-wheel drive models has gradually increased, which will further expand the demand for drive motors.

Founder Motor is mainly engaged in the research and development, production and sales of micro motors, new energy vehicle drive motors, automotive electronics (engine controllers) and home appliance intelligent controllers. According to the statistics of the First Electric Research Institute, thanks to the hot sales of Hongguang MINIEV, Xiaopeng P7 and other models, founder motor supporting motors will reach 230,000 units in 2021, second only to BYD, Tesla and other self-supplied drive motor OEMs.

Founder Motor recently announced that it expects its net profit in 2021 to be 18 million yuan to 27 million yuan, achieving a year-on-year turnaround. The company said that this is mainly due to the rapid development of the domestic new energy vehicle market, the company's new energy vehicle drive motor production and sales increased significantly year-on-year, of which the new energy vehicle drive motor business increased by more than 250% year-on-year.