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The whole vehicle industry, as an industry that needs a huge amount of financial support, has officially opened its own board, and many automobile companies have launched plans one after another, including a number of new forces led by Weima, in the hope of "grabbing the beach" Science and Technology Innovation Board's first share of the whole car to solve the problem of financing. However, the latest news shows that Geely has completed its listing tutoring a few days ago, which means that it will officially launch an impact on the "first share of Science and Technology Innovation Board".

On August 28th, according to the Zhejiang Securities Regulatory Bureau, China International Capital Corporation and Huatai jointly coached Geely Automobile Holdings Co., Ltd. on the listing of Geely Automobile Holdings Co., Ltd., the initial public offering of RMB common shares (A shares) was listed in Science and Technology Innovation Board, which has been officially completed. The prospectus will be formally submitted at the chosen date.

On June 13, 2019, Science and Technology Innovation Board, who is committed to supporting strategic emerging industries, officially opened the board on the Shanghai Stock Exchange. at that time, more than ten car manufacturers said through rumors or public statements that they would land on Kechuang board. Among them, a source said, "Weima Automobile will complete the financing of D-round in early September, declare the listing of Kechuang Board at the end of September, and land on Kechuang Board from January to February next year." And this may become the first listed Science and Technology Innovation Board car company, after all, in this year's environment, to solve the financing problem has become a number of new car-building forces "beach" Science and Technology Innovation Board's main reason.

Judging from the current valuation and operating income of Weima, Weima has met the listing conditions of Kechuang board. After the financing of D-round is completed, Weima's net assets and valuation will also further increase. However, at present, Weima is still releasing the positive signal of landing Kochuang board, Geely has completed substantial progress, with the current Geely acceleration Kochuang board listing plan, it also means that it is expected to become the first share of Science and Technology Innovation Board.

Although Geely Motor has already landed on the Hong Kong Stock Exchange, for Huike Chuangban, Yang Xueliang, vice president of Geely Automobile Group, said before that the purpose of opening up financing channels in the domestic A-share capital market is conducive to further diversified financing methods, optimize capital structure, effectively enhance the company's financial strength, and supplement the company's future layout of the "new four modernizations" and other strategic development funds.

So "grab the beach" Science and Technology Innovation Board's first share of the whole car, for Geely, is also the hope under the influence of the environment this year. According to Geely's latest 2020 performance report, Geely's revenue in the first half of 2020 was 36.82 billion yuan, down 23% from the same period last year, while net profit was 2.297 billion yuan, down 43% from the same period last year. The sales force is also obviously insufficient, with a total sales of 530400 vehicles (including the LinkedIn brand) in the first half of this year, down 19% from the same period last year.

It can be seen that the decline in Geely's net profit in the first half of this year was significantly higher than that in revenue, while the decline in revenue was higher than that in sales. In the face of market uncertainty, Geely announced a 6 per cent cut in its full-year sales target to 1.32 million vehicles. For the development in the second half of the year, it even said that "this is the most difficult year in the history of the group."

As a result, Geely said the outbreak led to global political and economic uncertainty and posed major challenges to the group's business activities and its future cash flows.

According to an automotive industry securities analyst, "for car manufacturers with high R & D investment and high production costs, a smooth landing on the Kechuang board means quick access to financial support to buy more time and development space for enterprises."

Wei Jianjun, chairman of Great Wall Automobile, also said before that "whether it is a traditional car company or a new car maker, they all compete on the same track in the end." Therefore, for both new forces and traditional car companies, the first share of Science and Technology Innovation Board will enable them to raise more funds with less time and equity costs, achieve rapid access to financial support, and help traditional car companies speed up their transformation. improve your defense capabilities.

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