The B round of financing is nearly 5 billion yuan, and Changan New Energy plans to complete the listing around 2025

On January 24, 2021, Chongqing Changan New Energy Automobile Technology Co., Ltd. (hereinafter referred to as "Changan New Energy") completed its Series B financing.

According to the "Announcement on Related Party Transactions of Associated Enterprises Increasing Capital and Expanding Shares by Public Listing" issued by Changan Automobile, the B-round value-added of Changan New Energy has been invested by 10 units, including Changan Automobile, raising a total of about 4.9773 billion yuan.

"This marks another positive step forward for Changan New Energy on the road of exploring market-oriented development." Wang Jun, president of Changan Automobile and deputy secretary of the party committee, said, "This B round of financing will surely inject new impetus into the future development of Changan New Energy, and comprehensively boost its market competitiveness and medium- and long-term value. ”

Take the lead in mixed reform and financing

According to the data, Changan Automobile registered and established Chongqing Changan New Energy Automobile Technology Co., Ltd. in May 2018, and Changan New Energy was officially established in 2019.

In fact, Changan Automobile entered the field of new energy as early as 2001, and is one of the earliest enterprises in China to enter the field of new energy vehicles, and has experienced three stages of technical research from 2001 to 2008, industrialization promotion from 2009 to 2016, and market-oriented operation from 2018 to the present, and completed the positive development process from prototype vehicles to products.

Changan Automobile believes that the future of the automotive industry lies in new energy, and the new energy departments of traditional car companies must be separated and independent, external financing, and establish a mechanism for benefit sharing in order to maximize resource integration and smoothly achieve transformation. Compared with other traditional car companies, Changan Automobile is the first to spin off its new energy business and develop independently, and it is far ahead of other state-owned enterprises in terms of financing development.

Changan Automobile believes that in order to develop the new energy automobile industry, it is necessary to introduce a new operating system, a new incentive mechanism, and a new marketing method through financing, so as to bring new products, new experiences, and new brands to users. In November 2019, changan new energy completed the first round of financing, introducing four strategic investors, including Changxin Equity Fund, Liangjiang Fund, Southern Industrial Fund, and Nanjing Runke Production and Investment, becoming the first automobile central enterprise in China to realize the reform of mixed ownership.

Since then, Changan New Energy has officially entered a stage of rapid development. From 2019 to 2021, Changan New Energy sold a total of 156,000 vehicles; in 2021, Changan New Energy sales exceeded 100,000 units, an increase of nearly 300% year-on-year.

According to Wang Jun, in April 2021, Changan New Energy opened a B round of financing, originally planned to raise 3 billion yuan, after nearly 200 negotiations, three rounds of screening, identified nine high-quality investors, and finally successfully completed the delisting of investment institutions on December 23, 2021.

For the completion of this financing, Changan Automobile said that this financing not only solves the problem of development resources of Changan New Energy, but also achieves a breakthrough in employee shareholding. Changan New Energy is the first enterprise under Changan Automobile to realize employee shareholding, and employees actively participate in the shareholding plan, with a total of more than 100 million yuan. Through employee shareholding, cooperation with the follow-up investment mechanism and other medium- and long-term incentive mechanisms, it not only solves the contradiction between the company's development and the personal development of employees, but also deeply binds the interests of core employees with the interests of the company, stimulates the vitality of employees, stabilizes the talent team, and lays a solid foundation for the future development of Changan New Energy.

It will go public around 2025

With the implementation of the mainland's "double carbon" strategy and the vigorous rise of the new "4+2" in the automobile industry, China's new energy vehicle market has ushered in explosive growth in 2021, with sales reaching 3.31 million units, an increase of 181% year-on-year, and the penetration rate has increased from 6.4% at the beginning of the year to 21.3%, of which 8 of the top ten brands in terms of sales are Chinese brands. According to the forecast of the Association, in 2022, China's new energy vehicle sales are expected to exceed 6 million, and the annual penetration rate will reach 22%.

"It can be said that China's new energy vehicles are fully entering the stage of marketization, and the new energy automobile industry is gradually becoming an important force supporting the high-quality development of China's automobile industry." Whether it is based on its own development or based on the responsibility of the nation, choosing to invest in such an industry will be the most anticipated and potential for the country, enterprises, and individuals. Wang Jun thought.

Based on its optimism about the new energy market, on October 19, 2017, Changan Automobile released its new energy strategy, the "Shangri-La Plan". It is estimated that by 2025, the cumulative investment in the whole industry chain will exceed 100 billion yuan. Among them, the investment in the research and development of new energy products will exceed 40 billion yuan, the investment in the construction of new energy proprietary platforms will exceed 10 billion yuan, the investment in the field of power batteries will exceed 30 billion yuan, and the investment in sharing, charging facilities and services will reach 20 billion yuan.

In addition, Changan also plans to launch a total of 25 intelligent new energy vehicles by 2025, covering EVs, PHEV and FCVs. Relying on a safety team of more than 200 people, we will create five-star safe new energy products. It is planned to take the lead in realizing L3-L4 intelligent driving assistance functions on new energy vehicles and apply 7 leading intelligent labeling technologies.

"In the process of transformation and reshaping, we have gradually realized that excessive investment and saturation investment in emerging fields such as new energy and intelligence have become inevitable, and it is far from being able to support long-term development by relying only on the company's own resources, and only by innovating the existing resource utilization model can we realize the grand blueprint of the "Shangri-La" plan." Wang Jun said that the success of changan new energy B round financing, internal realization of mechanism system innovation, strengthening the foundation, external realization of complementary resource advantages and integration, strengthen competitiveness, will accelerate the layout of Changan Automobile's "Shangri-La Plan" layout, to achieve the long-term development goals of Changan Automobile.

Wang Jun said that in the face of a new round of development and change in the automobile industry, Changan New Energy will continue to integrate global high-quality resources and achieve high-quality development around the "new automobile + new ecology" strategy and continue to use the "traditional new forces" model. By 2025, the sales of the new pure electric platform products will exceed 1 million, reaching the top two in China; by 2030, it will reach the global leader and build a world-class Chinese new energy vehicle brand.

Capital is one of the indispensable resources for the current competition in the new energy automobile industry, and Changan Automobile said that it supports Changan New Energy to obtain development funds through equity, debt and public listing. In addition, Changan Automobile also said that Changan New Energy plans to complete the public listing around 2025 after completing this round of financing, and Changan Automobile supports Changan New Energy to decide whether to continue to carry out the next round of financing before the IPO according to its development needs.

Responsible Editor: Li Yan'an Editor-in-Chief: Yu Jianping