The exclusive is about to take off!Chery shares may give up listing and use a new model to land on the capital market


Recently, a “fruit chain” giant Lixun Precision invested 10 billion yuan in Chery news, the old brand of autonomous car enterprise once again pushed to the forefront.Chery is planning some of what after all, after Qingdao Wudaokou, what did li Xun precision become a shareholder to represent again this time?”After Lixun became a shareholder, Chery’s mixed-use reform was basically over.”On February 21, a Chery insider told Spiegel Pro.Chery’s listing plan will be officially launched after the reform program ends, but this time chery’s listing is different.”There will be new directions.””The person said.The new major shareholder to lixun precision shares chery, became the first major “accident” in the automobile circle.On February 11, the evening, A shares “chain” bibcock, precision announcement, holding with chery, chery new energy, chery automobile co., LTD. (hereinafter referred to as chery, under the above three companies are collectively referred to as chery group) in wuhu jointly signed A strategic cooperation framework agreement, for both sides to lay the strategic cooperative partnership.According to the announcement, the core content is as follows: Lixun Precision and Chery New Energy plan to jointly establish a joint venture company, specializing in the research and development and manufacturing of new energy vehicles, to provide cutting-edge RESEARCH and development design, mass production platform and access to the sea for lixun Precision’s core parts business.Both parties agree that the cooperative subsidiary will be established within 3 months after the signing of the agreement, with the shareholding structure of 30% held by Lixun Precision and 70% held by Chery New Energy.Lixun Precision’s controlling shareholder Lixun Co., Ltd. and Qingdao Wudaokou New Energy Vehicle Industry Fund Enterprise (Limited partnership) (hereinafter referred to as Qingdao Wudaokou) signed the Equity Transfer Framework Agreement.The agreement stipulates that Lixun Co., Ltd. will purchase 19.88% of chery Holdings, 7.87% of Chery Holdings and 6.24% of Chery New Energy holdings held by Qingdao Wudaokou for 10.054 billion yuan.Lixun Precision said that after the transaction, Lixun Limited will not control chery holding shares, Chery shares and Chery New Energy constitute control.”Our medium and long term goal is to become a Tier 1 leader in automotive components.”Lixun Precision said in the announcement at the time.With the investment of Lixun Precision, Qingdao Wudaokou lost control of Chery, and this time chery’s control returned to Wuhu.This also makes the Qingdao wudaokou that has long been rumoured before buying a stake in Chery has an accurate answer.Qingdao Wudaokou is chery’s first capital entry after it launched mixed-use reform in 2018.In September 2018, Chery quietly started the capital increase and share expansion project to look for funds for future development.In 2018, Chery Holding and Chery Automobile respectively released the notice of capital increase and share expansion in Changjiang Equity Exchange. The two major projects were officially listed with the trading floor price of 7.9.11 billion yuan and 8.333 billion yuan respectively, totaling 16.244 billion yuan.Halfway through the project there was no progress.In September 2019, The transaction price of Chery was reduced by 1.9 billion yuan to restart the reform.In December 2019, the latter paid 7.586 billion yuan for 30.99 percent of Chery Holdings and 6.863 billion yuan for 18.52 percent of Chery Automobile.In addition, Qingdao Wudaokou also received 19.56% of chery holdings from Huatai Capital Management and Wuhu Ruichuang.The sum added up to 19.601 billion yuan.Thus, Qingdao Wudaokou held 51% of Chery holding shares and 35.58% of Chery Automobile shares respectively, becoming the largest shareholder of the two companies and replacing State-owned Assets Supervision and Administration Commission of Wuhu as the actual holder of Chery Holding.The move is seen as an important step in preparing chery for an ipo.In 2019, shortly after completing the investment, Zhou Jianmin, vice chairman of Chery Automobile and chairman of Beijing Wudaokou, sadly told the media that he would push forward the process of Chery’s listing. Chery should have been listed ten years ago, but the opportunity was missed.A year later in 2020, Yin Tongyue, chairman of Chery Holding and Chairman of Chery Automobile also made the latest statement on Chery’s listing: “After completing the capital increase and share expansion, Chery has put the listing on an important agenda.”Chery’s plans to list have been on the table since 2004.At the time, the Anhui provincial government had pushed for chery to go public, transforming the company into a joint-stock company.In August 2007, Yin Tongyue publicly stated that Chery would launch the listing and financing plan as soon as possible.But with the onset of the financial crisis in 2008, Chery’s operating profit fell to -194 million yuan and the listing was shelved.In June 2009, Chery sold a 20 per cent stake to five companies, including Huarong Asset, for Rmb2.9bn, in what was seen as a restructuring of its shareholding structure in preparation for a listing.At that time, chery executives even revealed: “Chery’s listing is coming soon.”But in 2011, Yin said chery automobile had some related party transactions and other problems, and did not consider listing.Chery listed the first major difficulty is the loss.In previous years of development, Chery had been in the red due to heavy investment in research and development. In 2014, Yin Tongyue publicly stated that Chery had made a profit for the first time in 10 years.Since then, profits have become easier with the addition of Chery JAGUAR Land Rover.However, Chery’s earnings are very volatile, volatile and small, which is not attractive to capital markets.Public information shows that in 2016, Chery achieved operating revenue of 32.964 billion yuan and total profit of 206 million yuan.According to a rating report released by the agency in 2016, Chery made a total profit of 341 million yuan on 28.055 billion yuan in revenue in 2015.In 2015, The sales revenue of Chery JAGUAR Land Rover was 8.728 billion yuan, and the net profit was 617 million yuan.In 2017, Chery Automobile (also known as Chery Shares) achieved operating revenue of 29.471 billion yuan and net profit of 264 million yuan.Profits in recent years have been tied to asset sales.So in 2018, Chery shares turned from a profit for four consecutive years to a loss.Data show that Chery Shares in 2018 operating revenue of 25.231 billion yuan, net profit is a loss of 527 million yuan.Losses continued to expand in 2019, exceeding 1 billion yuan in the first half of the year.In 2019, Chery’s operating revenue was 32.148 billion yuan and its net profit was 390 million yuan.The operating revenue of Chery In 2020 is 34.761 billion yuan, and the net profit is 7.3717 million yuan.Since it achieved profitability in 2020, and the market performance in 2021 shows that Chery has achieved steady growth, and new shareholders have been put in place, chery seems to have the opportunity to go public again.Some media speculated that chery’s listing could be in 2022.Only, it was right at the beginning, but not at the end.Chery new Energy’s “new role” after Qingdao Wudaokou investment, Chery did once again revive the listing plan.However, Chery also knows that such a small profit will hardly impress investors.Chery’s most attractive stake is its joint venture chery Jaguar Land Rover, which is also lossmaking.Therefore, after The entry of Lixom Precision, chery has formed a new listing plan: Chery shares, as the core asset of Chery, will give up listing, and Chery will package imaginative new businesses into Chery New Energy in the future, so as to promote the listing of Chery New Energy to achieve the plan of chery’s listing.”At this time, chery’s share listing is no longer of great value, there is no story to tell, but chery New Energy is in the midst of vigorous development and imagination, and it is also in the wind.””Said a company insider.But as for what assets into the company, Chery new energy will also have the next step of operation.This time there has been no official confirmation.This is a departure from Chery’s previous listing plans.In September 2020, Chery ended its capital increase, and Yin tongyue said chery has put the listing on an important agenda.Information shows that Chery Auto, Chery Hui Silver, Chery New Energy and Chery parts have listing plans, among them, Chery Auto plans to be listed on the A-share main board in 2022, Chery Hui Silver plans to be listed in Hong Kong, and Chery New Energy plans to be listed on the KEChuang Board or NASDAQ.Chery New Energy has outstanding performance in chery’s various sectors.In January 2022, a total of 20,635 new energy vehicles were sold, with a strong year-on-year increase of 179.6%.Chery New Energy achieved a total sales volume of 98,619 new energy vehicles in 2021, up 122.3% year on year.Chery New Energy has set a sales target of 300,000 units in 2022.For the listing, Chery New energy also planned for a long time.As early as 2015, Chery Group Chairman Yin Tongyue revealed that Chery New Energy was seeking to go public.In 2016, Chery New Energy tried to go public with conch profiles, but the plan fell through when the company failed to obtain a license to produce new energy vehicles.In 2019, chery Automobile executives said that chery New Energy would be launched on the science and Technology Innovation Board at the end of that year, but the plan was aborted again.In 2021, chery new energy high density adjustment, Yin yue personally served as chairman of chery new energy, the media said, citing people familiar with the information, chery new energy has been preparing the high-level exchange with chery new energy company independent public projects, chery commercial vehicle, a new founded “icar” project will be charged to chery new energy plate.Chery New Energy is reportedly preparing to be listed on the science and technology Innovation Board and hopes to complete its listing by the end of this year.But Chery New Energy said the company has not released official information.Chery, one of China’s leading independent firms, has also engineered a complex capital structure that has several listed companies under its wing, but the main one has never been listed.With the return of the new plan, Chery’s future has taken a new direction.But if Chery can smoothly go public and get more financial support, its future will burst into new vitality.Chery stands at a critical juncture once again, and its Renaissance has begun.

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