What are the advantages of Geely's beach rushing?
If we have to ask why the old and new forces have extended their tentacles to the capital market, in the final analysis, the automobile industry "burns too much money." Simply put, the automobile industry is capital-intensive and has a high technical threshold. For car-making enterprises, there is no tens of billions of funds to play. Everyone in the industry admits that money can't be spent before building a car, and after building a car, it is "not enough money." Behind the competition for IPO, traditional car companies and new forces have their own anxieties and ambitions.
As a self-owned brand with the number one sales volume for three consecutive years, Geely Automobile has a market value of HK$ 654.38+020 billion. However, affected by the macro environment, Geely Automobile's 2020 semi-annual report shows that the company's revenue in the first half of this year was 36.82 billion yuan, down 22.6% year-on-year; The profit attributable to shareholders was about 2.297 billion yuan, a year-on-year decrease of 42.7%. At the same time, Geely Automobile is seeking technological transformation, but it is not easy for an elephant to turn around. For Geely, which is in the high investment period of automobile industry transformation, it is natural to land on the science and technology innovation board to raise funds and supplement cash flow.
The data shows that on July 22, 20 19, the science and technology innovation board was opened, and the average increase of the first batch of 25 companies reached140%; Now that one year has passed, the "myth of making wealth" of the science and technology innovation board has not stopped. According to statistics, the first anniversary of the listing of Science and Technology Innovation Board, from the initial 25 companies to 140 companies, raised 200 billion yuan, and the total market value has exceeded 3.3 trillion yuan, resulting in hundreds of billionaires, of which 4 are worth more than 100 billion yuan. Since its birth, science and technology innovation board has been in favor of enterprises related to new energy vehicles. Landing in science and technology innovation board smoothly means obtaining convenient financing sources quickly and seizing the time and space for development.
According to the prospectus, the 20 billion funds that Geely intends to raise will be used for vehicle new product research and development, forward-looking technology projects, industrial acquisition projects and supplementary liquidity, and the raised funds will be used for 8 billion yuan, 3 billion yuan, 3 billion yuan and 6 billion yuan respectively. As we all know, with the profound changes in the global automobile industry, the "new four modernizations" have become the general trend, and research and development in these fields need a lot of investment. If Geely can successfully open the financing channel in the science and technology innovation board this time, it will use less time and equity cost to melt more funds and quickly build its own "moat" of science and technology innovation. More importantly, Geely Automobile has landed on the A-share science and technology innovation board, which is quite labeled as a technology car company.
Is it a win-win situation for car companies and consumers to board the "Science and Technology Innovation Board"?
As a leading enterprise in the automobile industry, Geely Automobile has been brave enough to be the first person to "eat crabs" for many times. Whether it is buying Volvo or taking a stake in Daimler, it has brought a good demonstration to the industry. This time, Geely Automobile also took the lead in returning to the A-share market. Returning to the A-share market will help the company to further diversify its financing methods, optimize its capital structure, effectively enhance its financial strength, and supplement the funds needed for future strategic development such as the "new four modernizations". At the same time, listing on A+H shares will help to make better use of grafted international and domestic market resources and help Geely's future technological transformation and long-term development.
At present, among the car companies listed in Hong Kong stocks, Great Wall Motor, BYD, Dongfeng Motor, Guangzhou Automobile Group and China Heavy Duty Truck have all been listed in A shares. Therefore, Geely's return to the A-share market can be regarded as making up for its financing shortcomings in the mainland market and further exploring financing channels. At present, the proportion of ordinary investors in the domestic A-share market is very high, and these investors are also potential consumers of Geely Automobile. The company's return to the A-share market will also enhance Geely's brand awareness and recognition.
From the perspective of investors, the arrival of Geely provides them with a good investment target, which helps to match their investment needs; For the capital market, the entry of more and more good enterprises can instill more ideas of value investment into the market and contribute to the healthy development of the capital market; From the perspective of the industry, the return of Geely will also help the domestic market to enjoy more dividends created by enterprises, and at the same time, it will form a good cycle and further feed back the industry.
Where is Geely's confidence in becoming the first share of the science and technology innovation board?
What is the purpose of landing on the science and technology innovation board? As we all know, the establishment of science and technology innovation board and pilot registration system is mainly to enhance the innovation ability of science and technology enterprises, enhance the inclusiveness of the market and strengthen the market function, which is itself a major reform of the capital market. Geely also landed on the science and technology innovation board to supplement the funds needed for strategic development such as the "new four modernizations" and accelerate the transformation of science and technology. In fact, in recent years, Geely Automobile's intention to tear off the original label of "traditional car companies" is very obvious. From the layout of ground science and technology travel and intelligent transportation, to the competition for airspace, and then to the overweight of aerospace, flying cars and high-speed trains, Geely Automobile's "integration of heaven and earth" has become its emboldened landing on the science and technology innovation board.
In terms of new energy vehicles, Geely has a geometric brand and a high-end electric vehicle brand Polestar. It is reported that Polestar plans to significantly expand its stores in China; In addition, in June, Geely's new energy vehicle direct rental travel platform "Xiaoling Dog Travel" received 687.7 million yuan in Series A financing. In terms of mobile travel, the registered capital of Cao Cao Travel Beijing Company, a subsidiary of Geely Automobile, has increased to 65.438+0.6 billion yuan, an increase of 220%. The first binary star independently designed and developed by Yudao Space-time is also planned to be launched at Jiuquan Satellite Launch Center by a fast boat rocket developed by the Aerospace Science and Technology.
In addition, Geely has established five R&D centers in the world, invested tens of billions of R&D expenses every year, achieved brand collaboration and R&D cooperation with Volvo and Lotus, and enjoyed the integration of supply chain technical standards, creating a new generation of powertrain "Geely Zhiqing" with European luxury car standards. It is worth mentioning that in the past ten years, Geely Holding Group's total investment in R&D has exceeded 1000 billion yuan, and there are more than 20,000 R&D designers in the group, with a total of 17677 patents. From 2065438 to 2009 alone, Geely Holding invested 20.7 billion yuan in R&D, which is already at the average level of foreign brands.
Advocate an idea
On the whole, Geely's landing on the science and technology innovation board is based on the favorable weather, geographical location and people, which contributed to the opportunity for Geely to land on the science and technology innovation board. At the right time, Geely Automobile will return to A-shares as an outstanding performance target, which will help to improve the quality of listed companies in the domestic automobile sector, expand the market value of A-share automobile sector, make the allocation of funds more reasonable and promote the survival of the fittest in the capital market. The favorable location is because China is undergoing a new round of financial opening, the threshold of scientific and technological innovation board is relatively low, and the financing channels are convenient. At present, Renhe is a high proportion of ordinary investors in the A-share market, and these are also potential consumers of Geely Automobile.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.