In recent years, the tide of new energy vehicles listed is surging, the listing of new energy vehicle companies has become a strange thing for everyone, just recently Nezha Automobile announced its listing in Hong Kong, in the face of so many new energy listed companies, Nezha Automobile is still attractive? What should we make of this?
1. Nezha Automobile went public in Hong Kong?
According to a report by the Securities Times, Nezha Automobile's parent company, Hezhong New Energy (hereinafter referred to as "Nezha Auto"), officially launched its IPO, with CICC, Morgan Stanley, CITIC Securities, CMB International and ABC International as its joint sponsors.
According to the prospectus, Nezha Automobile is a global technology-based new energy vehicle company. In 2023, Nezha Automobile's total revenue will increase by 3.9% year-on-year to 13.555 billion yuan, mainly due to the sales revenue of automobiles and parts. In the same year, its gross loss decreased by 27.2% year-on-year to 2.143 billion yuan. In terms of gross profit margin indicators that measure the health of business operations, Nezha Automobile is also accelerating towards a positive one.
According to the CIC Consulting report, in 2022, Nezha Automobile ranked first among China's new car-making forces, and ranked ninth among all car brands in the world in terms of pure electric vehicle sales. According to the statistics of pure electric passenger vehicles in the first quarter of 2023, Nezha Automobile ranked second among all Chinese new energy passenger car brands exported to Southeast Asia.
From January to May this year, Nezha Automobile exported 16,458 new energy vehicles, ranking first in the export volume of new power car companies and fifth in the export volume of new energy vehicles. As of the end of May, Nezha Automobile has more than 420,000 users worldwide, covering 30 countries and regions, and has exported a total of 35,000 vehicles since August 2022.
It is understood that in 2024, with the release of a number of products such as Nezha L and Nezha S new models, the continuous cultivation of overseas markets, Nezha Automobile will drive the utilization rate of production capacity and technology, and the cost will be diluted, further achieving an increase in annual gross profit and continuing to enhance profitability.
2. Is Nezha still attractive?
In the rapid evolution of the new energy vehicle industry, Nezha Automobile's listing in Hong Kong is undoubtedly a news that has attracted much attention. This not only marks another new Chinese EV manufacturer to join the ranks of the public capital market, but also reflects the continued capital enthusiasm and industry competition in the field of new energy vehicles.
First of all, the new energy vehicle market has experienced explosive growth in recent years, and along with this trend, a number of new energy vehicle companies have landed in the capital market, including NIO, Ideal, Xpeng, Leap, etc. These pioneers have used the power of the capital market to accelerate their own development, establishing brand influence and technical barriers. In contrast, Nezha Automobile's choice to go public in 2024 does seem a little slow. However, that doesn't mean it's coming to market at a bad time. In fact, with the continuous high global demand for new energy vehicles and the promotion of environmental protection policies by various governments, the prospects of the new energy vehicle industry are still broad. Nezha Automobile's listing comes at a time when the industry is mature, and it can more directly obtain market recognition for its products and strategies, thereby attracting the attention of investors.
Secondly, Nezha Automobile has suffered a cumulative loss of nearly 18.4 billion yuan in the past three years, which is a heavy burden for any enterprise. However, this is also a common challenge faced by many start-up new energy vehicle companies. Huge losses are often due to high investment in R&D, production facility construction and marketing, while revenue has not yet reached the level where it is sufficient to cover costs. The listing in Hong Kong provides an important capital replenishment channel for Nezha Automobile, which can alleviate its financial pressure and provide necessary financial support for its subsequent development. Through the funds raised through the listing, Nezha Automobile is expected to further expand its production scale, improve its technology research and development capabilities, strengthen supply chain management and market expansion, thereby accelerating its pace of profitability.
Third, although there are many listed companies in the new energy vehicle market, the competitiveness of Nezha Automobile in the international market cannot be ignored. According to the data, from January to May this year, Nezha Automobile's new energy vehicle exports reached 16,458 units, ranking first in the export volume of new power car companies and fifth in the export volume of new energy vehicles of car companies. This achievement not only proves the international competitiveness of Nezha automobile products, but also lays a solid foundation for the company's future internationalization strategy. The successful performance in the international market will undoubtedly increase investors' confidence in Nezha Automobile and add more attractiveness to its listing.
Fourth, the difficulty of Nezha Automobile's listing is relatively low, especially considering its good performance in the international market and the overall trend of the new energy vehicle industry. The real challenge, however, is how to effectively use the proceeds to drive profitability. This requires Nezha Automobile to formulate a clear strategic plan, including but not limited to optimizing the cost structure, enhancing product competitiveness, enhancing brand influence, and deepening the global layout. At the same time, Nezha Automobile also needs to strengthen cooperation with supply chain partners to ensure production efficiency and quality, as well as establish a robust financial management system to improve the efficiency of capital use.