On September 18, Evergrande announced that its board of directors decided to issue RMB shares and list them on the Science and Technology Innovation Board Stock Exchange.
Evergrande said that it is uncertain whether this resolution will be implemented because the issuance of RMB shares requires necessary regulatory approval. The Company will further disclose the progress of RMB share issuance in due course in accordance with the Listing Rules and other applicable laws and regulations.
Caijing Automobile contacted relevant persons of Evergrande Automobile on relevant contents, and the other party did not immediately reply to the request for comment.
Analysts believe that Evergrande's return to science and technology innovation board will help it open up domestic financing channels, enrich its capital strength, better use it in product and technology research and development, and enhance the competitiveness of new energy vehicle business.
Since the second half of this year, Evergrande's cross-border car-making plan has been greatly accelerated, including the wholly-owned acquisition of electric vehicle company NEVS, the release of six new cars of Hengchi brand, and the change of company name to Evergrande Automobile.
At the semi-annual financial report conference in 2020, Evergrande Automobile said that the first batch of six models of Hengchi brand under the Group are planned to be put into trial production in the first half of 20021and strive to achieve mass production in the second half of 20021. In addition, it will build three centers of Hengchi automobile exhibition experience, sales and maintenance warranty after-sales service, and a power battery production base on a large scale.
The construction of R&D, production capacity and sales network means that Evergrande will have huge capital demand in the future. Pan, chief financial officer of Evergrande Automobile, said that the total investment of the Group in automobile business in 20 19 -202 1 year will reach 29.4 billion yuan.
On September 15, Evergrande Automobile announced the rights issue financing, and arranged to introduce a number of international investors such as Tencent Holdings Limited, Sequoia Capital, Yunfeng Fund and Didi Chuxing in a new way, raising about HK$ 4 billion. The shares subscribed for this rights issue account for about 2.04% of the total issued shares at present, accounting for about 2% of the total issued shares after the subscription is completed.
Evergrande stated that the net proceeds from the subscription will be used for the general corporate purposes of the Group, and will help to expand the shareholder base, strengthen the capital base and improve the financial position and net asset base of the Group. At the same time, the insiders believe that Evergrande has won the support of Ali, Tencent and Didi, a travel service company, and is also paving the way for the layout of car networking, autonomous driving and car enjoyment.
Listing in science and technology innovation board provides a new financing channel for Evergrande.
In April this year, China Securities Regulatory Commission lowered the threshold for domestic listing of red-chip enterprises, including companies with market value of more than 20 billion yuan, independent research and development, international leading technology, strong scientific and technological innovation ability and comparative advantages in the same industry competition.
Thanks to the introduction of this policy, Evergrande has the potential feasibility of landing in science and technology innovation board and forming an "A+H" dual-platform layout, and its financing capacity is expected to be further improved.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.