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Beijing Great Wall Huaguan Automotive Technology Co., Ltd. (hereinafter referred to as "Great Wall Huaguan") and SPAC (special purpose acquisition company) Mountain Crest Acquisition Corp. With the signing of a formal merger agreement and the completion of the reorganization and listing by the end of 2022, Future Motor will go to overseas IPO as an important part of Great Wall Huaguan, with a pre-investment valuation of US $1.25 billion.

Beijing Great Wall Huaguan Automotive Technology Co., Ltd., formerly known as Beijing Great Wall Huaguan Automotive Technology Co., Ltd., is a limited liability company established with the approval of Shunyi Branch of Beijing Municipal Administration for Industry and Commerce, established on July 9, 2012. the main business includes the design of traditional cars, new energy vehicles, military vehicles and the research, development, production and sales of electric vehicles. In February 2015, Great Wall Huaguan established Future Automobile, and in the same year, Great Wall Huaguan was listed on the new third board. However, the performance of Great Wall Huaguan after landing on the new third board was not satisfactory, losing 98 million yuan in 2016 and 226 million yuan in 2017, and a net loss of 606 million yuan in 2018, down 168.15% from the same period last year. In the end, Great Wall Huaguan applied to terminate its listing on February 20, 2019 and announced its withdrawal from the new third board on April 19, while the continuing losses of its parent company exacerbated the plight of Future Automobile.

From the point of view of the time of development, the start of the future car is not much worse than that of NIO, Xiaopeng and ideal. When many new energy vehicle companies are still worried about the production qualification, the future automobile won the production qualification of the National Development and Reform Commission in 2016 and the production qualification of the Ministry of Industry and Information Technology in 2018. The first electric supercar K50 was listed in August of the same year. After subsidy, the national unified price is 686800 yuan. It can be said that it is the most expensive car in the new power of car-building in China.

As a member of the new car-building force, Future Automobile will launch the electric supercar as the first mass production model in China, which brings a certain degree of popularity to the future car to a certain extent. However, the future K50 has no obvious bright spot except for the appearance of a supercar. The comprehensive mileage of the NEDC is only 380km and the acceleration time of a hundred miles is 4.6s, which is not bright for an electric supercar priced at 700000 yuan. Relevant data show that the cumulative sales of the Future K50 in the past year and a half were only 131.

In February 2019, Future Automobile began to get into trouble, and the parent company Great Wall Huaguan also owed wages and supplier payments. Future Motors said at the time that the company did have financial problems, but it did not affect the payment of employees' salaries. At the end of 2019, Future Motor and its parent company Great Wall Huaguan thunderstorm, netizens exposed that Future Motor / Great Wall Huaguan owed employees' wages and even used employee information for loans, but the actual loans did not pay employees' wages. In November 2020, Future Motors was revealed to have broken its capital chain, withdrew its first store in Sanlitun and emptied its delivery center in Jingang Automobile Park. Since then, Future Automobile / Great Wall Huaguan began to fade out of the market, and it was once thought that it was difficult to return to the market.

Who would have thought it was back and planned to go public. In December 2021, the official account of Future Automobile sent three tweets in which officials said that they would sign a strategic cooperation agreement with Jingang Holdings and Blue Ocean Creative. Among them, Future Motor will provide vehicle modification plans and modified parts in this cooperation. In addition, Future Motor also said: long time no see, I am back. Set up a flag for myself, I will work hard, release a lot, Meimei presents, gorgeous turn around. Before the "resurrection" operation of the system, the last update of its official account was in July 2020.

Of course, Future Automobile has never officially announced its own death, but it has been gone for long enough for people to forget and remember. However, in front of the car of the future, is there still a "future" for the car of the future? Looking back a few years ago, when NIO, ideal, Xiaopeng, Weima and other new power brands made their debut one after another, the market once thought that "NIO" had no future and "ideal" had no ideals. now, however, NIO and ideal have become the mainstream brands in the new energy market, and as a member of the new power of car-building, it is also worth pondering whether there is still a future.

The first is the listing level, Great Wall Huaguan and SPAC (special purpose acquisition company) Mountain Crest Acquisition Corp. A formal merger agreement has been signed and the reorganization and listing is expected to be completed by the end of 2022. What is SPAC? SPAC's full name is Special Purpose Acquisition Company, which literally translates to "special purpose acquisition company". SPAC is a way of backdoor listing. Different from shell listing, SPAC, as a listing platform (shell company), has only cash but no actual business and assets. This company will invest in mergers and acquisitions of pre-listed target enterprises, and the target enterprises will quickly achieve the purpose of listing financing through mergers and acquisitions with listed SPAC.

After IPO, SPAC will have up to 2 years to find the M & A target. After a series of due diligence and financial audits on the target company, the shareholders of SPAC will vote on the project. If more than half of them approve, SPAC will promote the merger with the target company and trade on the market with the new stock symbol. If a suitable target is not found to complete the merger within two years, SPAC will be liquidated and $10 will be refunded to investors.

Compared with the traditional IPO,SPAC, it has the advantages of fast time, low cost, high success rate and simple process, which has great advantages for both investors and target companies. Of course, there are some risks in this way of listing. Investors can go public at a very small price, but the purpose of most SPAC is to achieve listing. Compared with the traditional listing methods, there is a lack of historical management accumulation and follow-up development planning. After the completion of the SPAC type acquisition in the past year or two, there is a lack of motivation for development and will soon return to the origin.

Previously, the future of Faraday, founded by Jia Yueting, is also listed through SPAC. However, its share price has fallen more than 80% since its listing, from an initial $13.98 to $2.62 in a recent trading day, and its total market capitalization has fallen from $4.535 billion to $850 million. As the Great Wall Crown, which once disappeared in the market, whether it will repeat the future road of Faraday is worth pondering.

In addition, listing is actually for financing, so as to establish product advantage and brand advantage. However, from the current point of view, although the price of Future K50 is expensive, its product power is not high, and few consumers pay for it, which greatly reduces investors' expectations of listed companies to a certain extent. however, whether Future Automobile can launch more competitive products and make the brand have more development advantages needs to be realized through a lot of financing. At present, whether the future car will return to the market is a flash in the pan or Huali turned around, which needs to be proved by the market.

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