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Today, according to several media reports, Nahu Automobile may submit an application for a Hong Kong IPO of US $1 billion this month. Reported that Naha car parent company Hezhong New Energy vehicle has put Agricultural Bank of China International and China Bank International on the list of financial services institutions responsible for listing. In addition, people familiar with the matter revealed that the review is under way, and details such as the timing and the lineup of financial institutions are still likely to change in the future. In response to the matter, Nahu Automobile issued a statement in response: the news is false.

Although officials have denied the IPO, it is undeniable that the launch of the car may be on the way. As early as July 2020, Naha Automobile announced that it would start the listing application of Kechuang Board, and planned to complete the listing in 2021. However, under the requirements of Science and Technology Innovation Board's new policy, the censorship of the "science and technology content" of listed companies has been strengthened, causing a number of companies, including Nahan Automobile, to end their plans to list on Science and Technology Innovation Board. In February last year, it was once again rumored that Nahan would be listed in IPO and planned to be listed in Hong Kong. At that time, with regard to the listing, Naha Automobile said that it was not known and that the news would be released as soon as possible.

Regarding the listing, Nashi Automobile CEO Zhang Yong said earlier: "Enterprise development needs a lot of money, and it is false to say that we are not short of money. Even companies that have been listed with money also need to refinance. For enterprises, the more money, the better."

Relevant data show that Naha Automobile is the automobile brand of Hezhong New Energy Automobile Co., Ltd., which was established in 2014. In April 2017, it was qualified to produce pure electric vehicles. In 2018, it launched its car brand, and launched its first production car, Nali N01, in the same year. In May 2021, Nahu Automobile cooperated with 360. In October of the same year, 360 invested 2.9 billion of Nahu Automobile to become the second largest shareholder of Nashi Automobile, with a shareholding ratio of 16.594%. In June last year, the group announced that it would transfer its 3.53 per cent stake in Naga to two limited partnerships with a corresponding capital increase of 1 billion yuan. after the equity transfer was completed, it held 11.4266 per cent of Naga.

As we all know, car-building is a continuous "money-burning" industry, which needs a lot of financial support. Which car needs to survive in the car-building field really needs a lot of money as backing. In terms of financing, Naha Automobile is still very popular in the capital market. According to incomplete statistics, Naha Automobile has exceeded 10 rounds of financing since 2017. In April this year, it was reported that Naha had completed a round of financing of more than 2 billion yuan. Investment institutions include CRRC funds under China Railway Corporation and Shenzhen State-owned Deep Venture Capital, etc. At that time, regarding the launch of IPO to Hong Kong within this year, Nahu Automobile responded that the issue of listing was subject to the company's official announcement.

Although the financing capacity is good, but judging from its performance in the past two years, it has not brought rich returns to the capitalists. By the end of 2022, the net loss of Naha Automobile was 6.919 billion yuan. From 2020 to 2021, the net losses of Naha were 1.321 billion yuan and 2.9 billion yuan respectively. In order to get rid of the loss-making situation, Najiao also launched the Nawei S model, which entered the high-end market, in July 2022, hoping to reverse the loss. However, the model did not sell well after its launch, with only 2003 units sold in the first month.

In April this year, the brand new sedan car Nahu GT was launched, and the new car positioning pure electric coupe launched a total of four models, with an official price of 17.88-226800 yuan. For Nashi GT officials are also very optimistic. Zhang Yong of Nezha car also said at the press conference: "Nezha GT178,800 realized the dream of millions of sports cars for users." The world automobile industry has developed for a hundred years, but the story that belongs to China's automobile industry has just begun, so let's take Nashi GT as an opportunity to start a new era of sports cars. Jiang Feng, vice president of Nezha Automotive, said that Nashi GT sales are expected to sell 5,000 units a month. But according to the latest sales of Nashi, the GT sold 1716 in May and 295 in April.

For Nahan Automobile at this stage, in the case of increasing net losses and difficult to form self-"hematopoietic" ability, listing is a way to survive. After all, listing will add a financing channel. Of course, the auto industry also believes that the biggest problem for which car is to change the product layout of "price for quantity".

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