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Recently, Dongfeng Group submitted to Shenzhen Stock Exchange the Letter of Dongfeng Motor Group Co., Ltd. on Withdrawal of Application Documents for Initial Public Offering and Listing on GEM, and the sponsor submitted to Shenzhen Stock Exchange the Application of CICC on Withdrawal of Sponsorship for Initial Public Offering of Dongfeng Motor Group Co., Ltd. and Listing on GEM. According to the relevant provisions of Article 67 of the Rules for Examination and Approval of Shares Issuance and Listing on GEM of Shenzhen Stock Exchange, Shenzhen Stock Exchange decided to terminate the examination and approval of Dongfeng Group's initial public offering and listing on GEM.

Dongfeng Group issued an announcement saying that based on the company's business decisions and strategic adjustments, combined with the actual market conditions, the company decided to withdraw the application documents for listing on the GEM to Shenzhen Stock Exchange, and plans to apply for public issuance of RMB common shares (A shares) and listing on the main board of Shenzhen Stock Exchange.

In October 2020, Dongfeng Group applied to Shenzhen Stock Exchange for public issuance of RMB ordinary shares (A shares) and listed on GEM, and passed the examination and approval of Listing Review Center of Shenzhen Stock Exchange in December, but the subsequent approval of CSRC has not been obtained.

It is understood that Kechuang Board opened in June 2019, and the first batch of companies went public in July. As a registration system plate independent of the existing main board market, Kechuang Board has always been famous for its advantages such as low threshold, convenient financing, low cost of information disclosure, short review period and controllable expected listing time, which has also become the first choice for financing and listing of technology companies.

According to previous statistics, in 2021, there will be at least 7 automobile enterprises on the sixth board, including Geely Automobile, Zero Run Automobile, Aichi Automobile, Weima Automobile, Evergrande Automobile, etc. However, due to changes in the market environment, the implementation of the new securities law and a large number of financial fraud cases similar to Le.com, IPO reviews are being tightened across the board. Guotai Junan Securities analysts said that Kechuang Board not only has higher requirements for scientific and technological level and innovation ability, but also considers the landing of business model and enterprise development prospects. Up to now, there have been no automobile companies on the sixth board, at the same time, more and more automobile companies announced the suspension of the sixth board.

On June 25, Geely Automobile issued an announcement saying that, in view of the Company's business decisions and strategic adjustments, the Company decided to withdraw the application for listing RMB shares on Kechuang Board after careful study and discussion with relevant intermediary institutions proposing RMB share issuance, and deliberated and approved by the Board of Directors at the meeting of the Board of Directors held on June 25,2021.

On September 26, Evergrande Automobile issued the announcement of "Termination Proposal to Issue RMB Shares under Special Authorization." Evergrande Automobile said in the announcement that after careful consideration, both parties agreed to terminate the Listing Guidance Agreement and would report to Shenzhen Supervision Bureau of China Securities Regulatory Commission. Therefore, the proposed issuance of RMB shares will no longer proceed.

In addition, the brand of WeiMa, Zero Run, Nezha, etc., which is the new force of car building, plans to make six science innovation boards or change. In September 2020, WeiMa Automobile officially submitted the IPO application of Kechuang Board, but there is still no definite news up to now. According to the decision issued by China Securities Regulatory Commission on amending the Measures for the Administration of Registration of Initial Public Offering Shares of Kechuang Board (Trial), the audited financial statements quoted in the prospectus shall be valid within 6 months after the closing date of the latest issue. Under special circumstances, the issuer may apply for an appropriate extension, but not more than 3 months at most. On September 13, the registered capital of Weima Smart Travel Technology (Shanghai) Co., Ltd., the main operating company of Weima Automobile, decreased from 1.209 billion yuan to 689 million yuan, a decrease of 43.01%. Some industry analysts said that the company may be planning to build a VIE structure to seek overseas listing.

In fact, whether it is a traditional automobile brand or a new force to build cars, the main purpose of its listing is to seek greater development opportunities. However, its product safety and product competitiveness are also the main factors supporting the later development. For the raised funds, Dongfeng Group shares said that it is planned to be used for brand-new high-end new energy passenger car projects, new generation vehicles and forward-looking technology development projects and supplementary working capital.

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