Informed sources told this newspaper that Geely Automobile plans to list on the Science and Technology Innovation Board, so it will postpone the merger plan with Volvo and restart the merger plan after the listing of Geely Automobile A shares is completed.
Accelerate the return to the A-share science and technology innovation board
On June 17, Geely Automobile announced that the board of directors had approved the preliminary proposal that RMB shares might be issued and listed on the Science and Technology Innovation Board of Shanghai Stock Exchange. The issuance scale of RMB shares shall not exceed 15% of the issued share capital of the company after the number of RMB shares to be issued is too large. The raised funds will be used for business development and general working capital. This announcement indicates that Geely Automobile, which has been listed in Hong Kong, will return to A shares.
On the evening of June 30th, Zhejiang Securities Regulatory Bureau, the official website, officially announced the work plan and implementation plan for the initial public offering and listing of A shares of Geely Automobile Holdings Co., Ltd. on the science and technology innovation board. It is reported that CICC and Huatai United Securities will serve as the listing counseling institutions of Geely Automobile, and the counseling is expected to end in July. Analysts believe that this move means that Geely's process of returning to the A-share science and technology innovation board is accelerating.
According to the announcement, about 40% of the net funds raised will be invested in research and development projects of new models to further enrich the product line; About 15% invested in forward-looking technology research and development projects such as new energy, car networking, intelligent driving, etc., in order to continuously improve the technical reserves in related fields; About 15% is used to acquire domestic targets such as potential factories or related innovative enterprises in the upstream and downstream of the industrial chain; About 30% is used to supplement working capital and general enterprise purposes.
It is widely believed that Geely's pursuit of returning to A shares is largely to alleviate its financial pressure. It is reported that among the vehicle companies, BYD, Guangzhou Automobile Group and Great Wall Motor have achieved A+H listing, and gained better financing channels after returning to A shares.
So far, Geely has not disclosed the financial report for the first half of 2020. However, from the 20 19 financial report released by Geely Automobile, the annual net profit has shrunk to some extent compared with previous years. In 20 19, Geely's annual revenue was 97.4438 billion yuan, down 9% year-on-year; The net profit was 86,543.8+0.9 billion yuan, down 35% year-on-year.
Postpone the merger with Volvo
The news that Geely and Volvo planned to merge was exposed as early as February this year 10. Geely Automobile announced that it is in preliminary discussions with Volvo to discuss the business merger and reorganization of the two companies.
10 years ago, Geely Holding acquired Volvo Group with a total investment of1800 million US dollars, and owned 10963 patents and exclusive intellectual property rights.
Since then, Geely has continuously deepened its technical cooperation with Volvo. In 20 17, the joint venture company of lectra motors and Geely-Volvo technology was established, which realized technology sharing, joint procurement of parts and components, and research and development of pure electric vehicle platform. 20 19 10, the two sides announced the merger of their respective engine businesses.
Geely and Volvo embrace each other and achieve each other. In 20 19, Geely won the China brand sales champion with 1.362 million vehicles. In 20 19, Volvo sold 705,452 vehicles. This is the sixth consecutive year that Volvo has broken the sales record, and it is also the first time that its annual sales volume has exceeded 700,000 vehicles since its establishment 93 years ago.
Therefore, Geely is ready to further merge with Volvo and become an automobile group with annual sales of more than 2 million vehicles. At the same time, the merged business plans to be listed in Hong Kong and Stockholm, hoping to integrate resources through business restructuring and lead the industry reform with greater scale advantage, stronger professional ability and resources. After the reorganization, Volvo Car, Geely Automobile, Link Automobile and Polar Star will all be planned under the Great Geely system, but each brand will still retain its unique positioning.
However, affected by the epidemic, Volvo's latest financial report shows that in the first half of 2020, the company lost about 989 million Swedish kronor (about 780 million yuan), compared with a profit of 5.52 billion Swedish kronor in the same period last year; The company's revenue in the first half of the year was11800 million Swedish kronor, down 14% year-on-year. In terms of sales volume, Volvo sold nearly 269,952 vehicles worldwide in the first half of 2020, down 20.8% year-on-year. Among them, the overall sales volume in China decreased by only 3% year-on-year. At the same time, Volvo Cars expects its business to resume in the second half of the year.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.