After encountering obstacles in seeking listing on the Science and Technology Innovation Board, a number of new domestic car-making forces began to choose to "divert" to overseas capital markets such as the Hong Kong Stock Exchange (hereinafter referred to as the "Hong Kong Stock Exchange") to seek listing.
Recently, NIO Motor (NYSE:NIO), which has landed on the New York Stock Exchange in the United States, reported that it may go to Singapore to seek a second listing after the Hong Kong stock listing plan is blocked. In addition, zero-running cars and Nezha automobiles have also been exposed to new progress in overseas listing plans. Zero-Run Auto has formally submitted its application materials for overseas listing to the China Securities Regulatory Commission (hereinafter referred to as the "CSRC"), while Nezha Automobile is said to plan to raise a new round of financing of US$500 million before the Hong Kong stock market is listed.
However, when the reporter of China Business Daily confirmed the relevant information to the above three companies, the other party gave the answers of "no response", "public disclosure of information prevailing" and "no news".
In addition to the above three new car-making forces, car companies such as WM Motor and Huaren Express Holdings Co., Ltd. (hereinafter referred to as "Huaren Express") have also recently been exposed to choose Hong Kong stock IPOs. "Opening up the capital market and expanding the brand effect are the main reasons that attract domestic car companies to seek listing." Li Ru (pseudonym), a senior manager in charge of the listing business of a new domestic car-making force, told reporters.
It is understood that Xiaopeng Automobile (NYSE: XPEV, 09868.HK) and Ideal Automobile (NASDAQ: LI, 02015.HK), which are in the first echelon of the new car-making forces, have successively achieved dual listings of US stocks and Hong Kong stocks. For the current choice of overseas listing locations for new car-making forces, Zhang Xiang, a researcher at the Automotive Industry Innovation Research Center of the North China University of Technology, told this reporter: "The first priority is still the United States, but the U.S. stock market is now saturated, and the amount of funds obtained by new energy vehicle companies in the U.S. stock market may have reached the upper limit." Therefore, when domestic car companies seek to list, they mainly hope to rely on overseas capital markets such as Hong Kong stocks and Singapore, or the domestic science and technology innovation board. ”
NIO or "diverted" the SGX
Recently, according to relevant media reports, NIO plans to seek a secondary listing in Singapore in 2022, and this transaction may raise about 1.9 billion US dollars. At the same time, the report also quoted information provided by relevant people familiar with the matter and pointed out that the reason why WEILAI Automobile was considering a secondary listing in Singapore was because the company's listing plan in Hong Kong has been pending. However, NIO will not abandon its listing plan in Hong Kong at present, and will continue to discuss relevant solutions with Hong Kong regulators.
For the above news, the relevant person in charge of Weilai Automobile told this reporter: "For market rumors, the company does not respond. However, according to the Financial Associated Press, Qin Lihong, co-founder and president of Weilai Automobile, responded to the above news: "We will do our best to promote the capital market plan that protects the interests of investors and the long-term development of the company." ”
"If the information that NIO chose to go public in Singapore is true, then it can be presumed that the company is facing great difficulties in seeking a Hong Kong stock listing." Bai Yiyang, an analyst at CMB International, told reporters that there are not many advantages in listing in Singapore, due to the lack of interconnection mechanism of the Singapore Stock Exchange (hereinafter referred to as the "Singapore Stock Exchange"), so the participation of Chinese investors is not as high as that of the Hong Kong Stock Exchange, at the same time, the valuation and trading preferences of SGX investors for unprofitable companies are not as good as those of the Hong Kong Stock Exchange.
Earlier, Bloomberg quoted information disclosed by relevant sources familiar with the matter as saying that in March 2021, NIO had formally submitted an application for secondary listing to the Hong Kong Stock Exchange, but NIO motor may postpone its Hong Kong stock listing plan to 2022. In response to the reasons for the delay in the listing plan, the report said that in 2021, NIO has received inquiries from the Hong Kong Stock Exchange about its structure, including the user trust fund established by NIO in 2019.
The reporter combed the information previously released by Weilai Automobile and found that in January 2019, Li Bin, the founder and chairman of Weilai Automobile, transferred 50 million shares under his name to establish the Weilai User Trust. Li Bin said at the time: "The establishment of the user trust is to be loyal to the original intention of WEILAI to become a user enterprise. I believe that by allowing NIO car owners to decide how to distribute the economic benefits of these shares, the trust will reflect NIO's core values, thereby benefiting NIO's users, shareholders, employees and partners in the long run. One of NIO's core competencies is a unique user-centric business model that connects the entire NIO community. ”
In this regard, some analysts told reporters: "The establishment of user trusts may be considered as a channel used by Weilai Automobile to transfer wealth, so the regulatory authorities need to further understand this." Bai Yiyang also analyzed to reporters: "For the issue of setting up user trusts, individuals believe that the regulatory authorities should be worried about conflicts of interest. In extreme cases, this model will be similar to the 'MLM model', that is, users become shareholders, and then constantly pull new people to develop offline, obtaining the benefits of the company's revenue and market value expansion. This is an extreme case, but the business logic is the same. ”
Previously, at the "NIO DAY" held at the end of 2021, Li Bin replied to the question of the secondary listing of Weilai Hong Kong stocks: "Of course, we will make the most reasonable capital market arrangements for investors. There are currently no particularly new plans. ”
According to the latest financial report released by NIO, as of the third quarter of 2021, NIO has cash reserves of 47 billion yuan. At the same time, its third-quarter revenue reached 9.81 billion yuan, an increase of 116.6% year-on-year and 16.1% sequentially; net loss of 840 million yuan, narrowing by 20.2% year-on-year. In addition, according to official data, in the whole year of 2021, NIO delivered a total of 91,429 new vehicles, an increase of 109.1% year-on-year.
Zero run to submit a listing application
Coincidentally, the much-watched zero-run car listing plan has also made recent progress.
The reporter inquired on the official website of the Csrc and learned that the CSRC has recently accepted the approval materials of zero-run automobile's "overseas initial public offering of shares (including ordinary shares, preferred shares and other stocks and derivative forms of stocks)". However, the reporter did not inquire about the specific capital market for zero-running cars to choose to list.
For the progress of the company's listing, Zero Run Automobile responded to the reporter's interview and said: "At this stage, the company's external communication is consistent, and the specific information is subject to public disclosure. ”
In fact, zero-run cars have thrown up plans to go public as early as 2020. At that time, Wu Baojun, co-founder and president of Zero Run Automobile, said to the outside world that Zero Run Automobile was interested in listing on the domestic science and technology innovation board. "We need to strengthen the docking with the capital market, Zero Run Plans to submit IPO documents in the second half of next year (2021), and achieve listing on the Science and Technology Innovation Board at the end of 2021 or early 2022, and there will be a round of financing before the IPO."
In July 2021, Zhu Jiangming, founder and chairman of Zero-Run Automobile, revealed to reporters at the company's strategy conference: "It has not yet been determined whether to choose to be listed on the science and technology innovation board or in other capital markets. In October of that year, some media reported that ZeroCar was considering applying for an IPO in Hong Kong, China, and had already made preliminary contacts with consultancies on related matters, and could be listed as early as 2022.
According to the information currently disclosed by the CSRC, Zero Run Automobile has shifted its main energy to seeking overseas listing. It is worth noting that zero-run cars are accelerating the adjustment of the company's governance structure. In December 2021, Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as "Dahua Shares", 002236.SZ), the parent company of Zero-Run Automobile, issued an announcement that Zhu Jiangming applied for resignation as a director of the seventh board of directors and a member of the strategy committee under the board of directors for personal reasons.
According to the information of Tianyancha, Zero Run Automobile was established in December 2015, jointly invested and established by Dahua Co., Ltd. and related persons, and the legal representative Zhu Jiangming was one of the co-founders of Dahua Co., Ltd. For the above personnel changes, Zero Run Auto has previously responded that Zhu Jiangming will focus more on the zero run car business and does not need to do too much interpretation.
In terms of equity structure, the reporter learned through the Tianyancha platform inquiry that at present, Zhu Jiangming directly holds about 11.78% of the shares of zero-running cars; Fu Liquan, chairman of Dahua Shares, directly holds about 15.7% of the shares of zero-running cars; Dahua shares hold about 15.5% of the shares of zero-running cars.
In addition, as of now, Zero Run Auto has carried out 7 rounds of financing, and the disclosed financing amount has exceeded 12 billion yuan. Zero-run car insiders admitted to reporters that the financing rhythm and amount of zero-run cars are relatively restrained in comparison. "Zero-run cars belong to full-stack self-developed enterprises, the core components are self-developed, and because the company's management team itself is from the electronics industry, it has a strong cost control ability in the research and development of core components."
Hong Kong stock listing is a preferred option
As a member of the first echelon of new domestic car-making forces, Weilai Automobile, Xiaopeng Automobile and Ideal Automobile "Three Musketeers" have all been listed on the US stock market.
At the same time, since 2021, some car companies trying to list on the science and technology innovation board have encountered obstacles and finally withdrawn or suspended their IPO plans. In this context, many car companies have begun to choose to turn to the Hong Kong Stock Exchange for listing. In 2021, Xiaopeng Automobile and Ideal Automobile have been listed on the Hong Kong Stock Exchange, realizing the dual listing of US stocks and Hong Kong stocks.
At the same time, in addition to Weilai Automobile, Zero Run Automobile and Nezha Automobile, WM Automobile and Huaren Express have also recently been exposed to choose the Hong Kong Stock Exchange as the first place for overseas IPOs.
For example, according to relevant media reports, Nezha Motors plans to raise US$500 million before listing on the Hong Kong Stock Exchange and is currently working with financing advisers. In this regard, Nezha Automobile replied to this reporter's reporter: "I did not get the news. In November 2021, Nezha Automobile was accused of going public on the Hong Kong Stock Exchange or raising US$1 billion. In October of the same year, Nezha Automobile announced that it had completed the D1 round of financing of 4 billion yuan.
In Bai Yiyang's view, in 2021, after the listing of WM Motors on the Science and Technology Innovation Board was frustrated, the new car-making forces began to seek other listing channels to open financing channels. "Listing in Hong Kong can meet the access conditions of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, and facilitate A-share investors to use the shares of Hong Kong stock investment companies to open up channels for domestic capital docking."
For the advantages of listing in Hong Kong stocks, Bai Yiyang pointed out to reporters that the main reason is that the investor structure of the market is relatively good, and there is an interconnection mechanism, and investors are also more familiar with Chinese companies. In terms of valuations, Hong Kong stock investors are very kind to unprofitable companies. At the same time, there are also more financial instruments in hong Kong's capital market, which can help investors obtain market benefits through various channels.
For the current reasons why the new domestic car-making forces are eager to be listed, Li Ru pointed out to reporters: "Mainly to open up the capital market, the main means of corporate financing at present is to find direct investors, if the listing is successful, the company can directly raise funds by issuing bonds and increasing capital." ”
In addition, Li Ru said that cars belong to bulk consumer goods, and the successful listing of car companies has a very great publicity effect on the brand. "At the same time, listing in the overseas capital market also puts forward higher requirements for the company's operating ability and gross profit margin level, and the development needs to be more standardized and there must be a clearer plan for the future."