On March 11, China Innovation Aviation Technology Co., Ltd. (hereinafter referred to as "China Innovation Airlines") officially submitted an A1 prospectus to the Hong Kong Stock Exchange for listing on the Main Board of Hong Kong, with Huatai International as its sole sponsor.
Previously, some media reported that the proposed IPO of China Innovation Airlines may raise up to US$1.5 billion, which is expected to become the largest IPO in Hong Kong so far in 2022.
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As the head enterprise of power battery, China Innovation Aviation has continued to grow explosively in recent years. By landing on the capital market, China Innovation Airlines will get more "ammunition" in terms of capacity expansion and technological innovation, and seize the opportunity of the rapid development of the global new energy vehicle market.
It is worth mentioning that China's new energy vehicle sales continue to lead the world, and it is inseparable from the strong support of the new energy vehicle industry chain. Especially in the power battery link, the power battery head enterprises represented by China New Energy Navigation are expected to escort China to seize the commanding heights of the global new energy automobile industry through capacity expansion and technological innovation.
According to the data, Zhongxin Airlines is mainly engaged in the design, development, production and sales of power batteries and energy storage systems, and has now become one of the domestic and even global power battery head enterprises. According to the data released by Frost & Sullivan, according to the installed capacity in 2021, Zhongxin Airlines ranks second among China's third-party power battery companies and seventh in the global power battery companies; according to the installed capacity in January 2022, China Innovation Airlines has jumped to the sixth place in the global power battery companies.
According to the prospectus, from 2019 to 2021, the sales volume of china's power batteries increased from 1.62GWh to 9.31GWh, with a compound annual growth rate of 139.7%, which is the only one of the top ten power battery companies in China that has an annual growth rate of more than 100%.
According to financial data, in 2019, 2020 and 2021, the operating income of China Innovation Airlines reached 1.734 billion yuan, 2.825 billion yuan and 6.817 billion yuan respectively, with a compound annual growth rate of 98.28%.
Zhongxin Airlines has supported GAC, Changan, Guangfeng, Guangben, SAIC-GM-Wuling, Geely and other OEMs, and has become the largest supplier of GAC and Changan, the main supporting models are GAC Aian series, Hongguang MINI, Benben E-Star and so on. In addition, China Innovation Airlines has also obtained the fixed point of all models of Xiaopeng Automobile, and the zero-run C11 model is also exclusively supplied by the company.
Under the background of the rapid development of the new energy automobile industry and the continuous increase in the installed capacity of power batteries, China Innovation Airlines has long put the expansion of production on the agenda. According to the prospectus, China Innovation Airlines will build/expand the existing industrial base, add multiple production lines, and continue to upgrade its technology.
At present, among the top five camps of domestic power batteries, China Innovation Airlines is the only company that has not yet been listed. Although several rounds of equity financing have been completed in recent years, considering the development prospects of the new energy automobile industry and the company's globalization strategy and production capacity layout planning, it is reasonable to promote the company's further development through listing.
For the listing of China Innovation Airlines in Hong Kong, industry insiders pointed out that some new energy quality enterprises have been listed in Hong Kong in recent years and achieved good issuance results. As an international financial centre, Hong Kong has a mature capital market system and international institutional investors. As one of the leading enterprises in the power battery, Zhongxin Airlines is in a period of rapid development, which is expected to be fully recognized by domestic and foreign investors, and investors can also fully enjoy the dividends brought by the company's development.
According to the prospectus, the funds raised by China Innovation Airlines in Hong Kong will be used to build and expand a number of industrial base projects for power batteries and energy storage systems; advanced technology research and development to maintain technological leadership; working capital and general corporate purposes.
Since 2015, China's new energy vehicle sales have ranked first in the world for seven consecutive years. The rapid development of the domestic new energy automobile industry has not only become an important starting point for China to promote the strategy of "carbon neutrality and carbon peaking", but also a new highland for China to seize the global industrial competition.
Behind the sudden rise of China's new energy automobile industry, it is inseparable from the strong support of China's new energy automobile industry chain enterprises. Especially in the field of power batteries with the highest value of new energy vehicles, the performance of Chinese companies is particularly prominent. The data shows that in the 2021 global power battery installed ranking, Chinese companies represented by China Innovation Airlines occupy 3 seats in the top seven, with a global market share of 45.1%.
In addition to production capacity, Chinese companies are also leading the world in terms of technology. Taking China Innovation Airlines as an example, the company has made many breakthroughs in material, structural and manufacturing technology innovation, as well as ecological and healthy development innovation. For example, the newly developed minimalist One-Stop Bettery battery has advantages in energy density, safety, economy and other aspects, and has become the focus of attention in the industry.
For example, Zhongchuang Hang has developed ultra-high heat-resistant and stable batteries, self-healing solid electrolyte interface membranes and high-safety electrolytes, and applied them to magazine batteries, making it the industry's first ternary battery to successfully pass the puncture test. Acupuncture test is one of the most stringent tests in the power battery safety performance experiment, at present, only two domestic automobile brands have announced the "qualified" results of the ternary battery acupuncture test, and one of the brands of power batteries is provided by China Innovation Airlines.
The above innovations are highly praised by the market. For example, Xi Zhongmin, deputy general manager of GAC Aean, said that the reason why the company has been recognized by the market is inseparable from the strong support of China Innovation Aviation in technology and supporting supply, "We have jointly developed the industry's first 'magazine battery' system safety technology, which can withstand the most stringent needle prick test, refresh the new height of battery safety, achieve global leadership in EV technology, and currently fully carry mass production on all models of GAC Aegean." ”
Regarding the future strategy, at last year's strategy conference, Liu Jingyu, chairman of China Innovation Airlines, revealed that the company will continue to deepen energy storage technology, focus on investing in energy storage materials, new energy storage systems, and efficient recycling, and continue to exert efforts in the direction of "smart +" and "energy +" to build a comprehensive energy operation system, accelerate the process of clean energy substitution, help drive mode change, and promote low-carbon social development.
Adhering to the enterprise spirit of "beyond business, benefiting mankind" and the corporate vision of "co-creation and win-win", Zhongxin Airlines takes the construction and improvement of a healthy industry ecosystem as its mission, drives the healthy development of the industry with innovative ideas and leading core technologies, and strives unremittingly to lead the new era of energy.
In the face of the broad prospects of the new energy automobile industry, with the help of the capital market, the development of China New Aircraft is expected to run out of "acceleration".
The prospectus shows that the global new energy vehicle market will continue to maintain a high-speed growth trend. From 2021 to 2026, global new energy passenger car sales are expected to grow at a compound annual growth rate of 29.8%, and the global new energy passenger car penetration rate is expected to reach 30.1% in 2026. Among them, China will be the world's largest new energy vehicle market, and the penetration rate of new energy passenger cars is expected to climb from 15.5% in 2021 to 37.7% in 2026.
As the new energy vehicle market continues to grow, the global power battery installed capacity is expected to grow at a compound annual growth rate of 36.4% between 2021 and 2026, and reach 1386.7GWh in 2026. Among them, according to the installed capacity, China is the largest power battery market, and it is expected that the installed capacity of power batteries will reach 762.0GWh in 2026, and the compound annual growth rate from 2021 to 2026 will be 37.6%.