Suddenly, SVOLT terminated its listing | Electromotive force

Honeycomb Energy's dream of going public is difficult to come true after all.

On December 22, the Shanghai Stock Exchange disclosed that the listing application status of SVOLT Energy Technology Co., Ltd. (hereinafter referred to as SVOLT Energy) changed to "terminated", which also means that the grand listing plan launched by SVOLT Energy from the end of last year ultimately failed.

Why did SVOLT terminate its listing?

According to the documents disclosed by the Shanghai Stock Exchange, it was the "withdrawal application documents" submitted by SVOLT and its sponsor, CITIC Securities, before the Shanghai Stock Exchange terminated SVOLT's listing review.

Therefore, the termination of the listing is actually the initiative of SVOLT Energy.

The reason for this, SVOLT responded to the outside world, saying, "The company has comprehensively considered various factors, and has decided to withdraw the A-share application and consider launching other financing plans in the best interests of the company and its shareholders." ”

On November 18, 2022, the Shanghai Stock Exchange officially accepted SVOLT's listing application, during which the Shanghai Stock Exchange terminated SVOLT twice, both on the grounds that "the financial information recorded in the issuance and listing application documents has expired and needs to be supplemented." ”

At the same time, as a power battery company born out of Great Wall Holdings, whether SVOLT has a significant dependence on a single business of its related party Great Wall Motors has also become a key issue for the Shanghai Stock Exchange.

Under the obstruction of such problems, the road to listing of SVOLT Energy can be described as twists and turns.

It is difficult to say whether SVOLT took the initiative to terminate the listing this time, whether it was difficult to retreat in the face of difficulties, or to take into account the best interests of shareholders.

After all, in the new energy vehicle industry recently, car companies' self-developed batteries have become increasingly popular, and the capital market's value evaluation of independent battery manufacturers is also further declining.

For example, on December 17, Li Bin, chairman of Weilai, tested the endurance of self-developed 150-degree semi-solid-state battery vehicles live, and on December 18, the share price of CATL, the boss of power batteries, fell 5.18%, and the stock price hit a new low in more than 3 years.

The capital value of CATL is still the same, not to mention Honeycomb. Therefore, SVOLT chose to withdraw voluntarily at this time, which may not be a bad thing, and we can continue to pay attention to SVOLT's so-called "other financing options" in the future.

In addition, the reason why SVOLT chose to start the listing plan last year was to raise 15 billion funds for capacity expansion, but it may not be needed for the time being.

First, this year, the power battery market environment has changed abruptly, supply exceeds demand, and prices have repeatedly declined, and SVOLT does not have the necessary conditions to continue to expand production capacity.

According to a previous report by "Electromotive", SVOLT Energy's employee resignation willingness is also at a high level. ("The resignation of employees in the battery industry has caused heated discussions, and Honeycomb and Funeng can't keep people")

Second, SVOLT's battery loading needs to be further improved. According to data from the China Automotive Power Battery Industry Innovation Alliance, in the first 11 months of this year, Honeycomb Energy installed 7.18GWh, with a market share of only 2.11%.

"We're not really happy with that number. On December 12, at the 4th Honeycomb Energy Battery Day, Yang Hongxin, Chairman and CEO of Honeycomb Energy, commented on the achievements of Honeycomb Energy this year.

Objectively speaking, Yang Hongxin is still relatively sober, he understands that the new energy vehicle industry, which is becoming more and more involuted, is also simultaneously forcing practitioners in each industry to be more sophisticated, otherwise there is only a dead end, especially for companies like Honeycomb Energy, where the scale of battery loading has not yet climbed.

"Last week, I also put forward a request to some core suppliers, in 2024, I hope that the cost reduction of raw material procurement will reach 15%-20%, this pressure is very huge, but we need to find a way to solve it together, otherwise it will be difficult to survive in the industry competition. "In addition to finding new financing, how to further reduce costs is the biggest problem facing Honeycomb Energy under Yang Hongxin's control.