According to the documents of the Hong Kong Stock Exchange yesterday (March 17), the new car-making force Zero Run Automobile submitted an application for listing on the Hong Kong stock market, and CICC, Citi, JPMorgan Chase and CCB International served as the co-sponsors of the IPO.
Founded in 2015, Zero-Run Cars delivered a total of 43,900 electric vehicles last year, ranking fourth among pure electric vehicle companies in China. Former IPO shareholders Sequoia China, CICC Capital, Dahua, Shanghai Electric, etc.
The annual sales volume exceeded 40,000 units, and three of its models are on sale
In the past three years, zero-run cars have delivered three models, namely the smart pure electric coupe S01, the smart pure electric mini car T03, and the medium-sized smart pure electric SUV C11, which mainly focuses on the high-end mainstream new energy vehicle market in China with a price of between 150,000 yuan and 300,000 yuan. It also plans to launch eight new models by the end of 2025 at a rate of 1 to 3 models per year.
For the whole year of 2021, zero-run vehicles delivered a total of 43,748 electric vehicles, an increase of 443.5% year-on-year. According to Sullivan, according to Sullivan' sales volume in 2021, the company ranks fourth among Pure Electric Vehicle Companies in China.
Zero-run car delivery volume chart
The company's factory in Jinhua City, Zhejiang Province, which produces intelligent electric vehicles and its core systems and electronic components, is a wholly-owned digital artificial intelligence factory with a production line that currently has a production capacity of 200,000 vehicles per year.
At the same time, zero-running cars are also the only emerging electric vehicle companies in China with global independent research and development capabilities to achieve independent research and development, design and production of all core systems and electronic components of intelligent electric vehicles, and have created intelligent power systems (Leapmotor Power), automatic driving systems (Leapmotor Pilot) and intelligent cockpit systems (Leapmotor OS).
In the trillion new energy vehicle market, the mid-to-high-end series is expected to become the mainstream
According to Sullivan statistics, in 2021, new energy vehicles priced in the price range of RMB 150,000-300,000 will account for 39.0% of the total sales volume of China's new energy vehicle market, and will increase from 1.3 million units in 2021 to 5.21 million units in 2026, with a compound annual growth rate of 32.0%, becoming the largest and fastest growing segment in China's new energy vehicle market
In terms of sales in 2021, zero-run vehicles rank fifth among the world's pure electric vehicle companies and fourth among China's pure electric vehicle companies. Its main model, the T03, ranks third among the cars sold by Chinese pure electric vehicle companies to C-end customers in 2021.
In 2021, the operating income exceeded 3.1 billion, an increase of 5 times year-on-year!
From 2019 to 2021, the total revenue of zero-run vehicles was 117 million yuan, 631 million yuan and 3.132 billion yuan, respectively, and the revenue in 2021 increased by 496% year-on-year.
Similar to most new energy vehicle companies, zero-run cars have not been profitable since their establishment and are still in the investment period, and the company's net losses in 2019-2021 are 901 million yuan, 1.1 billion yuan and 2.845 billion yuan, respectively. According to the prospectus, due to the investment in research and development of new models and the expansion of production facilities and sales networks, it is expected that net losses will continue to be generated in 2022.
Up to now, zero-run cars have more than 1,000 R&D personnel, accounting for 33.9% of the company's total employees. ZeroCar's R&D expenditure in 2019, 2020 and 2021 was RMB358 million, RMB289 million and RMB740 million, respectively.
It is worth noting that the company's gross profit margin has improved year by year in the past three years, -95.7%, -50.6% and -44.3% respectively. The prospectus said that it was mainly due to the increase in the delivery of electric vehicles with higher profit margins year by year, as well as the reduction in unit costs due to economies of scale. In the future, costs will continue to be controlled, and gross profit margins may continue to improve.
According to the prospectus, 40% of the IPO will be used to expand the smart electric vehicle category, expand the team and invest in research and development of intelligent technologies such as autonomous driving, and the rest will be used to enhance production capacity and enhance brand awareness.
Risk and Disclaimer: The above content only represents the author's personal position and opinion, does not represent any position of Gloria, and Gloria cannot confirm the authenticity, accuracy and originality of the above content. Investors should consider the risks of investment products in light of their own circumstances before making any investment decision. If necessary, please consult a professional investment advisor. Huasheng does not provide any investment advice and makes no promises or guarantees in this regard.