On January 24, Changan New Energy held a signing ceremony for the B round of financing with the theme of "Working Together to Create Brilliant" in Chongqing, the base camp. At this point, the B round of financing work started by Changan New Energy in 2021 was declared a complete success after a year, and finally raised 4.9773 billion yuan, exceeding the planned financing of nearly 2 billion yuan.
As we all know, the current epidemic has not receded, the chip shortage, only less than three years of establishment of Changan New Energy can still achieve such a growth rate, and the capital market for a long time optimistic, what does this mean?
The B round of super-raised funds is nearly 2 billion yuan
First, let's look at the scale of the B round of financing.
Changan New Energy's B round of financing work was officially launched in April 2021, originally planned to raise 3 billion yuan, after nearly 200 negotiations, three rounds of screening, identified nine high-quality investors, and then after several rounds of communication, and finally successfully completed the delisting of investment institutions on December 23, 2021.
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. According to reports, in the process of this capital increase and share expansion, Changan New Energy set strict screening requirements and standards for the selection of investors, and finally obtained the result of over-raising funds of nearly 2 billion yuan, indicating that the development of Changan New Energy has been fully recognized by investors and is full of confidence in future development.
After the completion of the capital increase, Changan Automobile's shareholding ratio was diluted from 48.95% to 40.66%. Changan Automobile said that the landing of Changan New Energy's B round of financing has not only injected new impetus into Changan New Energy's opening of a new round of industrial competition, but also opened a new starting point for Changan Automobile's transformation and upgrading, and will also become another great practice of building a "high-end automobile industry cluster in western China".
It is true that the landing of Changan New Energy's B round of financing is an important moment for Changan New Energy.
With the rapid transformation of the automotive industry to the direction of new energy, the market penetration rate of new energy vehicles has also continued to increase, and new energy has become an important development direction of the future automobile market. Competitors in the market are pouring in, and at the same time, the competition in the market is becoming more and more intense. Under the new war situation, Changan Automobile must accelerate the diversified financing development of Changan New Energy, which will have a positive impact on the company's development and operation.
You know, this 5 billion is not easy to come by, which is the second round of financing of Changan New Energy after nearly two years.
Changan New Energy, which was established in May 2018, planned its first capital increase in August of that year, but in June 2019, Changan Automobile announced that it would temporarily terminate the capital increase due to disagreements with investors.
Moreover, in October last year, Changan Automobile also issued an announcement that it planned to introduce a number of investors for Changan New Energy, and the total amount of funds to be raised was not more than 5 billion yuan.
This B round of financing means that it is the last financing before the IPO of Changan New Energy. Frankly speaking, even if Changan New Energy will not carry out an IPO, I believe that the volume of Changan Group will be enough to revitalize this new energy branch.
At the same time, it is more important that through diversified financing and share expansion, the development ability of Changan New Energy can be enhanced, and the core employee holding is also equivalent to giving the enterprise a shot in the arm, which is conducive to building an industry-leading new energy vehicle brand.
Deeply cultivating the new energy industry for more than 20 years, Changan New Energy has delivered excellent results
Since its establishment in 2019, Changan New Energy has made gratifying achievements in product development, core technology mastery, marketing capability improvement, and talent training. From 2019 to 2021, the cumulative sales volume was 156,000 vehicles; in 2021, Changan New Energy sales exceeded 100,000 units, an increase of nearly 300% year-on-year, and the growth rate ranked first in the industry.
At the product level, we developed four series of vehicle products, including the Ben EV and the Yidong EV460. In 2021, Changan New Energy Benben EV ranked third in the micro-electric market; Changan Yidong EV ranked first in the compact pure electric segment in the J.D.Power 2021 China New Energy Vehicle Product Attractiveness Index Study (NEV-APEAL) with its hard-core product strength. The first product, C385, based on EPA1's new electric vehicle-specific platform, has rolled off the production line in December, and it is also expected that this product, which will receive high attention after its debut, will achieve excellent performance after its listing in 2022.
In terms of core technology mastery, guided by the "Shangri-La Plan", Changan New Energy has mastered more than 200 breakthrough innovative technologies since the A round of financing. During the 14th Five-Year Plan period, it is planned to break through 500 more innovative technologies and add 3,000 patents. Independently developed and built EPA0, EPA1 and EPA2 three industry-leading new dedicated electric vehicle platforms; independently master the development capabilities of the "three electricity" system, launched 0 fire battery, Changan new generation of super-collector electric drive, intelligent vehicle domain controller "Chang'an Smart Core", etc., of which the domestic leading super-collector electric drive system can achieve a weight reduction of 10%, power density increase of 37%, efficiency increase of 5%; independently master the vehicle integration capabilities, fully grasp the platform integration development, modular design, reliability verification, etc., of which the domestic leading super-collector electric drive system can achieve a 10% reduction in weight, a 37% increase in power density, and a 5% increase in efficiency; independently master the integration capabilities of the whole vehicle, fully grasp the platform integration development, modular design, reliability verification, Key technologies such as body, chassis, interior and exterior trim, and electrical appliance development.
Facing the future, Changan New Energy has also planned a new goal, which will be positioned as "the world's first-line mainstream electric vehicle brand" and strive for sales of 700,000 vehicles in 2025 as the goal, accelerating the construction of One of China's top two new energy vehicle brands. Will quickly launch C385, C673 and other products, with high quality, high intelligence level and customer-centric service concept, with a single series of annual sales of 150,000-200,000 vehicles as the goal, detonating the new energy market! It will rely on the core capabilities of Changan Automobile's "core core map cloud net sky" to achieve the domestic leading software definition capability of new energy vehicles, further make the core technical capabilities of Sandian explicit and structured, lay out the forward-looking technology of the industry, and create Changan new energy black technology; through data-driven, in accordance with the "online APP + official experience center + direct store" way to carry out marketing channel construction, accelerate the construction of online and offline direct connection, rapid response and continuous iteration of the marketing system.
According to its strategy, Changan Automobile will adhere to no less than 5% of its annual revenue into the field of research and development, create a new "6337" technical capability; will make every effort to build an intelligent automotive super digital platform for users with full scenario services - SDA architecture; will quickly launch 5 pure electric products, and is committed to becoming a "leader in the era of digital electric vehicle popularization"; will work with partners to implement low-carbon, digital transformation and upgrading, and build "a cloud in the sky, a network in the air, a platform in the middle, and a full scene on the ground" of a whole new business model.
Within five years, more than 20 new intelligent electric vehicles will be launched to meet the full-scenario needs of new people, and it is planned that by 2025, The sales volume of the Changan brand will reach 3 million vehicles, of which new energy will account for 35%; by 2030, to become a world-class brand, sales will reach 4.5 million, new energy will account for 60%, and overseas sales will account for 30%.
Kanche said: The next 3-5 years are likely to become a watershed in the new energy automobile industry, and market competition will enter the cruel "Spring and Autumn Warring States Era". In the face of the big waves and sand, sufficient financial security and strong technical strength will become the key factors for winning the victory. With the successful B round of financing, the capital structure of Chang'an New Energy was further optimized, and more capital "ammunition" was reserved for subsequent development.