Leapmotor Technology will be listed on the Hong Kong Stock Exchange for “global self-research” to be recognized by capital
Or become the first car-making “new force” to be listed directly in Hong Kong for the first time
A reporter from the “Economic Information Daily” was informed that Zhejiang Leapao Technology Co., Ltd. (“Leapao Technology“), a Chinese electric vehicle company focusing on the mid-to-high-end market, has passed the Hong Kong Stock Exchange’s listing hearing and launched its IPO on September 20. It is expected that Listed on the main board of the Hong Kong Stock Exchange on September 29, the joint sponsors are JPMorgan Chase, China International Capital Corporation, Citibank and CCB International. After the company completes the IPO, it is expected to take the lead in becoming the first “new force” to enter the Hong Kong Stock Exchange in the second half of this year. If the listing is finally successful, Leapao Technology will become the first domestic entity of the new force to list in Hong Kong.
Leapao Technology’s fundraising may reach HK$9.2 billion and 40% will be used for research and development
According to the terms of the transaction, Leapmotor plans to sell about 131 million shares, priced between HK$48 and HK$62 per share, 100 shares per lot, and the admission fee is about HK$6,262.49. Assuming the offer price is HK$55.00 per offer share (i.e. the median of HK$48 to HK$62 per share) and the offer size adjustment and over-allotment options are not exercised, the company estimates that it will receive net proceeds from the global offering About HK$6.950 billion, and HK$9.212 billion will be charged if the right to adjust the offering and the over-allotment option are fully exercised.
According to the fundraising plan, approximately 40.0% of the company’s net proceeds from this listing will be used for research and development, including expanding and upgrading its smart electric vehicle portfolio, recruiting more R&D personnel, funding the development of advanced automotive smart technologies, and improving electrification technology; approximately 25.0% will be used to enhance production capacity; approximately 25.0% will be used to expand sales and service networks and enhance brand awareness; approximately 10.0% will be used for working capital and general corporate purposes.
In recent years, in order to broaden financing channels, the “new forces” of car manufacturers have chosen to go public in Hong Kong one after another. For example, WM Motor officially submitted an IPO application for Hong Kong stocks on June 1 this year, and Leapmotor Technology will also take the lead in becoming the first “new force” car company to enter the Hong Kong Stock Exchange in the second half of this year after completing the IPO. At that time, it may become the “Four Little Dragons” of Hong Kong stocks with “Wei Xiaoli”.
Since January 2018, Leapmotor Technology has successfully obtained multiple rounds of financing. Investors include Sequoia Zhisheng, Shanghai Electric, Xingzheng Investment, Sequoia Jiesheng, Ningbo Hualing, etc. As of November 2021, Leapmotor’s public financing amounted to 11.87 billion yuan, making it a member of the “new force” car company’s tens of billions of financing clubs. Throughout the financing history of Leapmotor Technology, various star investment institutions have emerged. As a top domestic venture capital firm, Sequoia China is the first investor in Leapmotor Technology besides its original shareholders, and has followed up with it in two rounds. It is understood that Leapmotor is also the first new energy vehicle company to be led by Sequoia China. Shen Nanpeng, the global executive partner of Sequoia Capital, also attended the signing ceremony of Leapmotor Technology financing in person, which was the platform of Leapmotor Technology. According to the shareholder list, Ge Weidong holds 18.3442 million shares of Leapmotor, accounting for about 1.81%.
Quality and quality go hand in hand, “global self-research” has gained multiple recognitions
Star shareholders frequently take action, and local governments give full support, which is inseparable from the technical confidence of Leaprun. Leapmotor Technology has repeatedly stated publicly that for the past seven years, the company has always adhered to the global self-research route, which is the key to building the underlying core competitiveness of the enterprise.
According to Frost & Sullivan, Leapmotor is currently the only emerging electric vehicle company in China with full-scale independent research and development capabilities, and it is also an emerging electric vehicle company with the highest degree of vertical integration in China, realizing all core systems of smart electric vehicles. And the independent research and development, design and production of electronic components, to create an intelligent power system (Leapmotor Power), an automatic driving system (Leapmotor Pilot) and an intelligent cockpit system (Leapmotor OS). Emerging electric vehicle company.
According to the prospectus, as of the latest practicable date, Leapmotor Technology has 1,617 patents and patent applications related to self-developed technologies (electric drive, battery system and autonomous driving technology), including 161 patents related to electric drive technology and Patent applications and 169 patents and patent applications related to battery systems, with significant research and development capabilities. The C11B water-cooled electric drive system was awarded the “China Heart” Top Ten New Energy Vehicle Power Systems in 2021.
With its upward brand positioning and leading self-developed technology, Leapmotor’s sales continued to rise. In July and August this year, the company’s smart electric vehicle deliveries surpassed “Wei Xiaoli”, ranking second among the new car manufacturers. Among them, the sales volume in July reached 12,044 units, an increase of over 177% year-on-year in a single month, and a cumulative increase of 244.8% year-on-year from January to July; in August, the company’s smart electric vehicle deliveries reached 12,525 units, an increase of over 180% year-on-year. A total of 76,563 new cars were delivered.
Sorting out the sales volume of Leapmotor Technology over the years, the company will deliver a total of 8,050 smart electric vehicles in 2020, a year-on-year increase of 676.3%; in 2021, a total of 43,748 vehicles will be delivered, a year-on-year increase of 443.5%. According to the “life and death line” of this car company of 100,000 vehicles, it took only three years since the delivery of the first mass-produced car, Leapmotor S01, on June 28, 2019. By the end of June 2022, the company will achieve the first 100,000 units were mass-produced. According to Frost & Sullivan data, Leapmotor has the fastest growth rate among the leading emerging electric vehicle companies in China, and the sales volume of pure electric vehicles in China in 2021 is the fourth.
The product matrix has been perfected, and the pre-sale of C01 has exceeded 100,000
Accumulated and developed, Leapao Technology‘s performance has ushered in rapid growth. According to the prospectus, the company’s revenue increased by 439.7% from RMB 117 million in 2019 to 631 million in 2020, and further increased by 396.1% to 3.132 billion in 2021. In the first half of 2022, it far exceeded the annual performance of 2021. reached 5.082 billion yuan; gross profit margin improved from -95.7% in 2019 to -50.6% in 2020, to -44.3% in 2021, and further improved to -26.0% in the first half of 2022.
It is worth noting that the product matrix of Leapmotor Technology is still improving. Its C01 will start pre-sale on May 10, 2022, and 20,764 orders have been opened within 4 hours of pre-sale. According to the latest news, the current number of C01 orders has exceeded 100,000, helping it gain a new round of brand upward momentum.
On September 28, Leapmotor C01 will be officially launched, and it is planned to gradually start delivery. The pre-sale price of the new car ranges from RMB 180,000 to RMB 270,000. It is positioned as a medium and large-sized pure electric sedan. The cruising range under CLTC (China’s light vehicle driving condition) is available in four versions: 500km, 606km, 630km and 717km, satisfying different preferences. Psychological needs of consumers.
Behind the rising delivery volume is the leap in production capacity. Leapmotor Jinhua factory has complete production capacity from core components of electric vehicles to complete vehicles. It has two fully automatic stamping production lines, and has achieved 100% automation rate of five main production lines in the welding workshop. , the current Jinhua plant has an annual production capacity of 200,000 vehicles, and the production capacity is being released continuously.
In the future, Leapmotor plans to launch seven new models by the end of 2025 at a rate of one to three models per year, covering sedans, SUVs and MPVs of various sizes. As a supplement to the product offering, the company also plans to launch EREV versions of these new models at the same time or later based on the self-developed program extension (EREV) technology to expand the target audience to include customers with different needs and preferences.