AutoBeta(AutoBeta.net)04/16 Report--

On the evening of April 15, United Motor, the parent company of Nashi Automobile, announced that it had received an investment of at least 5 billion yuan.

It is understood that Hezhong Motor signed a joint agreement with Tongxiang State-owned Capital Investment and Operation Co., Ltd., Yichun Jinhe Equity Investment Co., Ltd., and Nanning Minsheng New Energy Industry Investment Partnership. The three parties will jointly provide a total investment of not less than 5 billion yuan to Hezhong Automobile. According to the agreement, the contracting parties jointly provide a total investment of not less than 5 billion yuan to Hezhong Motor; coordinate relevant resources to support Hezhong Automobile to achieve IPO as soon as possible, continue to increase investment in product research and development and technological innovation, expand the Intelligent Network Alliance R & D Center, and promote Hezhong Automobile to expand its export scale.

According to Tianyan information, Tongxiang State-owned Capital Investment and Operation Co., Ltd. is 100% owned by Tongxiang Finance Bureau, while Yichun Jinhe Equity Investment Co., Ltd. is 99.94% owned by Yichun Jinyuan New Energy Investment Co., Ltd. but its actual control is the Finance Bureau of Yichun Economic and technological Development Zone. The shareholders of Nanning Minsheng New Energy Industry Investment Partnership (limited partnership) include Guangxi Nanning Shengning Investment Group Co., Ltd., Nanning Investment guidance Fund Co., Ltd., Nanning Industrial Investment Group Co., Ltd.

Up to now, Naha Automobile has completed 14 rounds of financing, with a total public amount of more than 22 billion yuan, including Ningde Times, Ruihua Holdings, Huading Capital and Deep Venture Capital. This latest round of financing will support United Motor to achieve IPO as soon as possible. It is reported that Naha Automobile started preparations for IPO in Hong Kong in the fourth quarter of last year, and the cornerstone investment signed so far has exceeded 2 billion yuan.

Nezhong Automobile, a brand owned by Hezhong New Energy Automobile Co., Ltd., was founded in 2014. it owns Nezhong U (RMB11.88-206800), Najiv V (RMB7.39-103800), Najie S (RMB15.48-224800) and Naga GT (RMB18.88-226800). It focuses on low-end models, and the price of its products is basically in the range of RMB7.39-220000.

Data show that at present, Naha Automobile is located in Tongxiang, Zhejiang, Yichun, Jiangxi and Nanning, Guangxi. Among them, Tongxiang factory is the first intelligent production base established by Naha Automobile, which was put into production in 2018. The factory covers an area of more than 400mu, with a total construction area of 96762 square meters, which mainly produces Nezhu V and Nahu U. Jiangxi Yichun factory covers an area of 747mu, with a total investment of about 3.2 billion yuan. It was put into production in January 2022 and is responsible for the production of Nahong S, Nahu U, Nahu V, with an annual production capacity of 100000 vehicles. Nanning production base is the result of strategic cooperation between Naha Automobile and Guangxi Nanning Municipal Government, covering an area of about 800mu, with a total investment of more than 3.5 billion yuan, and began construction in 2020.

Although Nahu has three major vehicle production bases in China, its performance has not been satisfactory in the past year. According to the data, 127496 new cars were delivered in 2023, down 16.16 per cent from a year earlier, while its annual sales target was 250000, with a target completion rate of only 51 per cent. For comparison, Naha Automobile is the top seller of the new car-building forces in 2022, delivering a total of 152073 cars, becoming the dark horse of the new car-building forces.

As for the decline in sales, Zhang Yong, co-founder of Naha Automobile and CEO, publicly conducted a series of summaries and self-criticism at the beginning of the year. However, judging from the sales performance in the first quarter, the sluggish car sales in Nahu have not been alleviated. The latest figures show that from January to March this year, the cumulative sales of Nashi cars were 24434, down 6.65 per cent from the same period last year. As for the reasons for the decline in sales, Naha Automobile said: "the Tongxiang factory is undergoing reconstruction and expansion projects, which will have a great impact on the output in March and April. It is expected that the production capacity will be gradually increased from the middle to late April, with an annual production capacity of 200000 units."

The global sales target of Najia in 2024 is 300000, of which 200000 are domestic and 100000 overseas, compared with a completion rate of only 8.15% in the first quarter. For the current car, "how to stop the decline in sales" is an urgent problem to be solved. According to the plan, the Naxi L will go on sale in April, and whether the car can improve its car sales after the launch will play a vital role.

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