Financial Associated Press (Shanghai, editor Zhou Xinyang) news, a new domestic car-making force - Zhejiang Zero Run Technology Co., Ltd. submitted a listing application to the Hong Kong Stock Exchange on March 17.
According to the prospectus, Zero Run is currently the only emerging electric vehicle company in China with global independent research and development capabilities, and it is also the emerging electric vehicle company with the highest degree of vertical integration in China.
Once Zero Run Auto is listed in Hong Kong, it will become another new energy vehicle company listed in Hong Kong after Ideal Automobile (02015.HK), Weilai (09866.HK) and Xiaopeng Automobile (09868.HK), but the annual delivery volume of Zero Run is only about half of "Wei Xiaoli".
The team of lead underwriters of Zero Run consists of CICC, Citi, JPMorgan Chase & Co. and CCB International.
According to the prospectus, the main shareholders of Zero Run Automobile include: Zhu Jiangming, founder and chairman of Zero Run Automobile, Dahua Shares, Guosen Securities, etc., and Hangzhou State-owned Assets also has shares.
According to Tianyan, Zero-Run Auto was established in December 2015 and has had 7 rounds of financing experience so far. Previous rounds of financing have attracted the intervention of a number of PE/VC venture capital, including Sequoia China, CICC Capital, Gopher Assets, etc.
Deliveries are growing the fastest
In the past three years, zero-run cars have delivered three models, and plans to launch eight new models by the end of 2025 at a rate of 1 to 3 models per year.
Zero-run models have been introduced
For the full year of 2021, zero-run vehicles delivered a total of 43,748 electric vehicles, an increase of 443.5% over 2020. According to Frost & Sullivan, zero-running cars are the fastest growing of China's leading emerging electric vehicle companies in terms of deliveries.
However, it is worth mentioning that in the sales ranking of new power car companies in 2021, the top "Wei Xiaoli" has exceeded the order of 90,000, and the annual delivery volume of zero runs is only half of them.
For the purposes of the listing, the prospectus states that the net proceeds will be used primarily for research and development, increasing production capacity, expanding business and enhancing brand awareness, as well as for working capital and general corporate purposes.
Losses are also intensifying
Similar to most new energy vehicle companies, zero-run cars have not been profitable since their establishment and are still in the investment period. According to the prospectus, due to the research and development investment of new models and the expansion of production facilities and sales networks, the prospectus emphasizes that net losses are expected to continue in 2022.
In terms of financial data, from 2019 to 2021, the revenue of zero-running cars was 117 million yuan, 631 million yuan and 3.132 billion yuan, respectively, of which the year-on-year growth rate in 2021 was 396.1% compared with 2020.
However, due to the fact that car manufacturing is a high capital expenditure industry, the annual losses attributable to the company's equity holders in the past three years were 901 million yuan, 1.1 billion yuan and 2.8457 billion yuan, respectively, and the degree of loss continued to increase.