AutoBeta(AutoBeta.net)11/19 Report--

On November 18, the Shanghai Stock Exchange released the Capital increase Project of Avita Technology (Chongqing) Co., Ltd., revealing that Avita Technology (Chongqing) Co., Ltd. intends to raise a total of no more than 12 billion yuan (including original shareholders), which is mainly used to attract the company's investment, as well as the follow-up vehicle R & D design, production line investment, market brand development, channel construction, etc., and supplement corporate liquidity to promote the future listing process. After the completion of the capital increase, Chongqing Changan Co., Ltd. and Southern Industrial Asset Management Co., Ltd. together hold no more than 50% of the shares.

Avita Technology (Chongqing) Co., Ltd. (hereinafter referred to as "Avita Technology") was established in July 2018, formerly known as Changan Weilai New Energy Automotive Technology Co., Ltd. (hereinafter referred to as "Changan Weilai"). Due to the lack of progress in the cooperation between Changan Automobile and Weilai, the two sides finally parted ways, and later Changan Weilai changed its name to Avita Technology Co., Ltd. in May 2021 and launched the Avita brand. At this point, Avita has become a high-end brand of Changan Automobile, jointly developed by Ningde Times and Huawei, in which Changan Automobile is responsible for production, Ningde era provides batteries, and Huawei is responsible for intelligent driving and control. It is understood that since its establishment, Avita has completed three rounds of financing, with a total financing amount of about 8 billion yuan, and according to Chen Zhuo, president of Avita, disclosed at the supplier partner meeting that Avita is currently conducting round C financing, with a target fund-raising amount of 10 billion yuan, and the post-investment valuation will exceed 30 billion yuan.

Although it relies on Changan Automobile, Ningde era and Huawei, Avita's performance at the high end of the market is mediocre. Since its inception, Avita Technology has launched three models: Avita 11, Avita 12 and Avita 07. Retail data show that Avita sold a total of 33866 vehicles in the first 10 months of 2024, including 20229 for Avita 12, 8001 for Avita 11 and 5636 for Avita 07. It is understood that all the models currently on sale in Avita offer pure electricity plus extended range power. Among them, Avita 07 is the third production car under Avita Technology. The new car is located as a medium-sized SUV, which went on sale on September 26th with a price range of 21.99-289900 yuan.

For Avita, realizing self-hematopoiesis and reversing losses is the key problem that must be solved before IPO. According to the financial report, the net loss of Avita in the first half of 2024 was 1.395 billion yuan, compared with 2.015 billion yuan in 2023 and 3.693 billion yuan in 2022, and a two-and-a-half-year loss of more than 7 billion yuan. Chen Zhuo, president of Avita Technology, once said that IPO is not only to solve the problem of financing sources, but also to improve the corporate governance structure to make it more compliant and standardized.

Not long ago, Avita decided to enter the hybrid market, through pure electricity + hybrid power layout to expand sales scale. At the same time, Avita spent 11.5 billion yuan to buy a 10% stake in Huawei Watch, a move that will strengthen the link between Avita and Huawei and take advantage of the latter's technological awareness in the minds of consumers, thereby boosting brand tenure and brand sales. In the next three years, Avita will launch more than a dozen blockbuster products, including 11 extended range, E16 (internal code name) and big 5 / 6 SUV. By 2030, it will invest a total of 50-60 billion yuan to achieve the annual sales target of 500000 vehicles.

Avita's main investors include Changan Automobile with state-owned background and Ningde era. With the completion of round C financing, more diversified investors will enhance the confidence of external investment to some extent so as to speed up the listing process. If IPO succeeds, it will not only bring broader development space for Avita, but also encourage more investors to pay attention to and invest in state-owned enterprises and new energy fields.

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