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Recently, media quoted people familiar with the matter as saying that Hezhong Automobile, the parent company of Nezha Automobile, is considering an initial public offering (IPO) in Hong Kong, or will raise about $1 billion. The person also said Hezhong Auto is working with advisers on the potential IPO as early as 2022. At present, for this news, Hezhong Automobile has not responded yet.

As for the news that Hezhong Automobile is considering an IPO in Hong Kong, Hezhong Automobile is actually preparing as early as September 2020. At that time, Zhang Yong, CEO of Hezhong Automobile, said that underwriters had been in the company for four months and began to coach Hezhong Automobile before listing, hoping to apply for Kechuang Board IPO in 2021. In addition, in July this year, Hezhong Auto officials said they were raising 3 billion yuan in Series C financing and planned an IPO in 2021.

From this year's Nezha car financing, everything is going well. On October 18,360 issued an announcement saying that, as the leading investor in Series D investment of Nezha Automobile, it plans to invest a total of 2.9 billion yuan to formally invest in Hezhong Automobile, the main body of Nezha Automobile, and obtain about 16.6% of its equity, becoming the second largest shareholder. On October 27, Nezha Automobile officially announced the completion of D1 round of 4 billion yuan financing. In addition to the 2 billion yuan led by 360, CCB International, CITIC Securities Investment, Shenwan Hongyuan Hong Kong's new energy industry fund, Jifu Venture Capital and other investment institutions followed suit. On November 8, Nezha Automobile officially announced that it had formally signed a strategic agreement with Ningde Times New Energy Technology Co., Ltd. According to official sources, Ningde Times will participate in the company's D2 round of financing and will fully open strategic cooperation with it in the fields of technology research and development and supply chain support.

It is understood that Hezhong Automobile was established in October 2014. Nezha Automobile is an automobile brand owned by Hezhong New Energy Automobile Co., Ltd., which was established on June 1,2018. At present, it owns three models: Nezha N01, Nezha V and Nezha U, covering small SUV and compact SUV. Among the new forces in China, Nezha cars were not outstanding earlier, with cumulative sales of 15091 vehicles in 2020. In recent months, deliveries of Nezha cars have increased significantly.

According to relevant data, in October 2021, the delivery volume of Nezha vehicles was 8107 vehicles, with a year-on-year growth of 294%. From January to October, the cumulative delivery volume of Nezha vehicles was 49,500 vehicles, with a year-on-year growth of 398%. For Hezhong Auto will IPO in Hong Kong, some insiders said that if successfully listed on the board, the most important thing is to promote its brand is a very good role, because after listing, there will be a lot of media tracking reports. This will be a free PR campaign, which is more important than how much money is raised.

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