On the evening of March 17, the official website of the Hong Kong Stock Exchange disclosed that Zhejiang Zero Running Technology Co., Ltd., the company behind Zero Run, has submitted a listing application, with CICC, Citi, JPMorgan Chase and CCB International as joint sponsors.
At the end of January, Zero Run Technology submitted the approval materials for overseas listing to the CSRC, and at that time it was reported that Zero Run, which was originally scheduled to be listed on the Science and Technology Innovation Board, would be diverted to the Hong Kong Stock Exchange. If successfully listed, Zero Run will become the fourth new car-making force to land on the Hong Kong Stock Exchange.
The zero-run car was founded in 2015 and is the same as the ideal car. In the past three years, Zero-Run Cars has delivered a total of three cars to users, namely S01, T03 and C11, and the delivery volume has increased month by month, reaching 8,085 units in January this year, and the gap with "Wei Xiaoli" has gradually narrowed.
Supported by higher sales, the revenue of zero-running cars has also gradually increased. According to the prospectus, from 2019 to 2021, the revenue of zero running was 117 million, 631 million and 3.132 billion yuan, respectively, and the growth rate was significantly expanded.
Continuing the style of other new car-making forces, zero-run R&D investment has been on the rise, from 358 million yuan to 740 million yuan in three years. A good sign is that R&D investment as a percentage of total revenue has declined, to just 23.6% in 2021.
However, in addition to R&D investment, zero run also needs to continue to invest in expanding marketing, service network and improving production capacity, so far it has not achieved profitability, the net loss in the past three years is 900 million, 1.1 billion and 2.8 billion yuan, respectively, a total of about 4.7 billion yuan, for 2022, zero run is expected to continue to lose money.
For the post-market product planning, Zero Run is full of ambitions, planning to launch 1-3 cars per year, and finally launching 8 new models by the end of 2025, so the frequent launch of new products, there are both opportunities and huge risks.
More models is equivalent to more revenue sources, but from the analysis of Wei Xiaoli's product matrix, the delivery volume mainly relies on its explosive models, such as Xiaopeng P7 and Ideal ONE. Car sea tactics are more suitable for traditional car companies with richer accumulation and higher brand recognition, for new force car companies, the intensive launch of too many models may not stimulate the potential of explosive models, but will lead to high costs and profits are far away.
In addition to the product matrix, in the prospectus, Zero Run also repeatedly emphasized its own autonomous driving technology.
Zhu Jiangming, the founder of Zero Run, is a technical school like Musk, one of the founders of Dahua Shares, a leading enterprise in the security industry, and has accumulated more in artificial intelligence and intelligent transportation technology. Therefore, when Zero Run was established, it was injected with technology and self-developed genes.
In July last year, Zero Run released the 2.0 strategy, and Zhu Jiangming announced several "small goals" of this new strategy, typical of which are self-driving technology surpassing Tesla within three years, reaching 800,000 vehicles in 2025 and adhering to the core technology of global self-research.
Many new domestic car-making forces regard Tesla as a transcendent object, but it is not common to give such a clear timetable, so zero runs were once deeply questioned.
According to the prospectus, the latest Leapmotor Pilot 3.0 autonomous driving system can provide 360-degree visual perception and 22 autonomous driving functions, according to the authoritative organization Frost & Sullivan, it is currently the most comprehensive self-driving system in the electric vehicle range of the same price range.
Although this can show the achievements of zero-run self-developed technology, but the technology must ultimately be implemented in sales, zero-run cumulative delivery in 2021 is only 43,000 vehicles, to achieve the annual sales target of 800,000 need to double nearly 20 times, which is not easy.
Listing to seek "blood transfusion" is only the first step, zero running on the road to achieve their "small goals", but also need to cross many obstacles.
Produced by ZAKER News
Text / Bao Xingwa
Editor / Zeng Xiantian