AutoBeta(AutoBeta.net)09/18 Report--

Since the official opening of Kechuang Board, known as China's "NASDAQ" this year, many automobile enterprises have applied for listing, among which there are many new automobile enterprises. Today, Evergrande Automobile announced in Hong Kong that the board of directors of the company decided to issue RMB shares and list on Kechuang Board of Shanghai Stock Exchange.

The announcement also mentioned that shareholders and potential investors should exercise caution when trading in the Company's securities as the issuance of RMB shares is subject to the necessary regulatory approvals and may or may not take place. The Company will make further disclosures in accordance with the Listing Rules and other applicable laws and regulations in due course regarding the development of the RMB Share Issue.

As early as three days ago, Evergrande had issued an announcement saying that the company had introduced Yunfeng Fund, Sequoia Capital, Tencent, Didi Chuxing and other investors by placing new shares, raising about HK $4 billion.

At the placing price, the price per placing share was HK$22.65, representing a discount of approximately 19.96% to the closing price of HK$28.3 per share on September 14.

The total number of shares placed is 17,658,000 shares, accounting for approximately 2.04% of the total issued shares and approximately 2% of the total enlarged issued shares upon completion of the subscription. After the placement, China Evergrande's shareholding in Evergrande Automobile will be reduced to 73.5%.

At the end of July, Evergrande Health issued an announcement saying that since new energy vehicles have become the most important business of the Group, it was officially renamed "Evergrande Automobile". And set up the next 3-5 years to become the world's largest and most powerful new energy vehicle group. In order to accelerate the car-building plan, on August 3, Evergrande released six models at one time, namely Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5 and Hengchi 6, covering all levels from A to D, as well as passenger car models such as sedan, coupe, SUV, MPV and crossover. At the same time, Evergrande New Energy "Hengchi" brand LOGO was officially announced.

It should be noted that Evergrande Automobile is about to be listed on Kechuang Board, but it has not seen mass production of a model in terms of vehicle model, so many netizens question: Is PPT to build a car?

It is well known that the company will be listed in a hurry without mass production models, and Jia Yueting will think of "Jia Yueting". Before that, Jia Yueting had already painted cakes everywhere because of his feelings, but so far the models have not been listed, which has been questioned by everyone for the purpose of listing money. However, Evergrande is different from Jia Yueting in that the former has more abundant funds to support the development of its own new energy vehicles, and Xu Jiayin, chairman of Evergrande Group's board of directors, had planned to invest in Jia Yueting before, but "failed" due to various reasons.

It is worth mentioning that for Evergrande Automobile, it may be good news to list Kechuang Board, but Evergrande's share price has fallen. By the close, Evergrande was down 4 per cent at HK $24.00, up 4.80 per cent in early trading, but its share price fell as much as 11.66 per cent, far below the auto sector.

It is not difficult to see that Hengda Automobile, which received a huge investment only a few days ago, made a listing plan a few days later, which made the capital market seem to be worried. The car industry burned too fast, which caused Evergrande to be short of funds.

Since the launch of new energy vehicle business, Evergrande has completed the layout of the whole industrial chain in one year, covering the fields of vehicle manufacturing, motor electronic control, power battery, automobile sales, intelligent charging, shared travel, etc. It is reported that Guangdong and Shanghai production bases will be completed in the second half of this year, and the first model is scheduled to be officially put into production in 2021.

According to Evergrande's previous disclosure, Evergrande's total investment in automobile group is expected to be about 29.4 billion yuan. It is estimated that Evergrande Group will continue to invest RMB 2.7 billion in the second half of the year, mainly for equity acquisition; the layout will be basically completed in 2021, with an estimated investment of RMB 9 billion, mainly for research and development; sales will begin after 2022, and the Group will no longer invest.

For car-building, it belongs to the key support category of Kechuang Board, and this group that continues to "burn money" needs to obtain more financing channels, such as being able to board six Kechuang Boards or the best choice. Statistics show that since the formal opening of Kechuang Board this year to accept listing applications, the number of declared enterprises has reached 111, among which many new energy automobile enterprises want to board.

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