Return to A-share Geely Automobile to be listed on science and Technology Innovation Board

category:Finance
 Return to A-share Geely Automobile to be listed on science and Technology Innovation Board


With regard to the initial use of the proceeds from the issuance of RMB shares, Geely Motor said that after deducting the issuance expenses, it is currently intended to be used for the groups business development and general working capital.

It is understood that the science and technology innovation board is a new board independent of the existing main board market, mainly for scientific and technological innovation oriented enterprises, including high-tech industries and strategic emerging industries such as information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, and biopharmaceutical. Science and technology innovation board has opened in June 2019 in Shanghai Stock Exchange, and opened in July. As of June this year, 110 companies have obtained the registration license of science and technology innovation board in one year.

In terms of market value and scale, as of June 16, the total market value of Geelys H shares was about HK $116.7 billion, about RMB 106.6 billion. On April 30 this year, China Securities Regulatory Commission issued the announcement on relevant arrangements for the domestic listing of innovative pilot red chip enterprises, which pointed out that the market value requirements of overseas listed red chip enterprises have been adjusted to meet one of the following two standards:

1u3001 The market value is no less than 200 billion yuan; 2. The market value is more than 20 billion yuan, and it has independent research and development, international leading technology, strong scientific and technological innovation ability, and it is in a comparative advantage position in the industry competition. This means that the threshold for overseas listed red chip enterprises to return to A-share market value has been reduced to 20 billion yuan.

It is understood that in 2019, Geely Automobile realized an operating revenue of 97.401 billion yuan and a net profit of 8.190 billion yuan. In 2019, Geelys total sales volume is 1.36 million, ranking first among its own brands. In May this year, Geely sold 108800 vehicles, up 20% year-on-year. From January to may, Geely sold 420300 vehicles, still ranking first among its own brands.

As an automobile enterprise, Geely has a lot of layout in the field of science and technology. Recently, Geely Automobile announced that it has entered the technology 4.0 era. It will make a new round of new car building with the help of the CMA modular architecture jointly developed with Volvo (involving Geely, Volvo, linker and Polaris), and promote the technological transformation of the company. Before that, Geely Group acquired Taili flying car to step into the field of air vehicles. This year, Geely Groups spatiotemporal Daoyu company also arranged the field of space satellites, planning to launch two low orbit satellites within the year. However, Geely didnt give a reply on whether these technology assets will enter the listed company system of science and technology innovation board.

It is worth noting that since 2020, Geelys actions in the capital market have increased significantly. First, it announced in February that it would plan to merge with Volvo cars, and the new business company after the merger would land in the two capital markets of Hong Kong and Stockholm. This time Geely plans to issue RMB shares into A-share technology innovation board, which is another new financing platform. Some analysts in the industry believe that due to Geelys rapid expansion over the years, the financial pressure behind Geely is also increasing day by day, and it is necessary to open more financing channels to support its further development. But the above Geely people stressed to reporters: Geely and Volvo merge and this A-share issuance are independent of each other and are not prerequisites for each other. Listed companies will work with relevant intermediaries to steadily and orderly promote the two transactions. At present, Geely has no specific date for landing on the scientific and technological innovation board. Geely reminded investors in the announcement that the specific plan for the proposed issuance of RMB shares must be further approved by the board of directors and the general meeting of shareholders of the company as well as regulatory comments, so it may or may not be implemented, and there is no guarantee that it will be implemented or when. Source: Yang Qian, editor in charge of Economic Observer_ NF4425

It is worth noting that since 2020, Geelys actions in the capital market have increased significantly. First, it announced in February that it would plan to merge with Volvo cars, and the new business company after the merger would land in the two capital markets of Hong Kong and Stockholm. This time Geely plans to issue RMB shares into A-share technology innovation board, which is another new financing platform. Some analysts in the industry believe that due to Geelys rapid expansion over the years, the financial pressure behind Geely is also increasing day by day, and it is necessary to open more financing channels to support its further development.

But the above Geely people stressed to reporters: Geely and Volvo merge and this A-share issuance are independent of each other and are not prerequisites for each other. Listed companies will work with relevant intermediaries to steadily and orderly promote the two transactions.