ChangAn New Energy Co. Teams With Huawei And CATL To Launch IPO and Build Advanced EVs

Automotive Author: 吴岱雅 May 17, 2021 04:13 PM (GMT+8)

The general manager of ChangAn New Energy and Technology Company, Yang Dayong confirmed that "ChangAn New Energy plans to sell around 70,000 new vehicles in 2021. Our target sales in 2025 will reach more than 500,000 units, while the planned sales in 2030 are to reach 1 million units."

Chang'an

On May 14, at ChangAn Automobile's shareholders' meeting, Yang Dayong said that Changan New Energy plans to launch an IPO on the Science and Technology Board. By teaming with Huawei and Contemporary Amperex Technology Co., the company is attempting to build a high-end electric vehicle brand called AB Auto, as indicated in the IPO asset proposal package. 

ChangAn New Energy Co. said that, after this IPO, the company is expected to sell one million units of vehicles in the next ten years and become the number one independent new energy company in China. 

Founded in May 2018, ChangAn New Energy is an R&D service provider focusing on production, processing and sales of new energy vehicles and auto parts. At first, the company was wholly owned by ChangAn Automobile. In October 2018, ChangAn Automobile made an announcement that it would introduce no less than three strategic investors for ChangAn New Energy in the form of capital accumulation and share expansion, with the intention of offering no less than 51% of its shares.

In December 2019, ChangAn New Energy raised CNY 2.84 billion in strategic financing. Here are four strategic investors, Nanjing Runke, Changxin Fund, Liangjiang Fund and Southern Industrial Fund. The company has become the first auto central enterprise to achieve hybrid reform, turning the company from a wholly-owned subsidiary of ChangAn Automobile into a five-party consortium. ChangAn Automobile is still the largest shareholder of ChangAn New Energy with 48.95% shareholding.

In January 2021, ChangAn New Energy completed a Series A financing round of CNY 2.84 billion with investors, including Changan Automobile, Nanjing Runke, Liangjiang Capital, and Demao Capital. Since then, ChangAn New Energy completed another CNY 3 billion Series B financing in February of that year. At the same time, ChangAn New Energy has begun to select and hire securities companies as financial advisors to prepare for the IPO.

Some industry insiders speculate that the financing is likely to have two strategic partners of ChangAn Automobile, Huawei and CATL, among a pool of investors. Previously, ChangAn Automobile had claimed at the brand strategy conference, showing that it would work with Huawei and CATL to build a new high-end smart car brand, and the new product would be based on the self-developed smart electric vehicle platform.