CH-AUTO Plans to Go Public Via Merger Transaction Relying on a SPEC

CH-AUTO Technology (Chinese: 长城华冠) said on Monday it had agreed to go public with a U.S. SPAC firm in a deal valued at nearly USD 1.7 billion, including debt. The deal with Mountain Crest Acquisition Corp IV comprises an equity value of USD 1.25 billion and a net debt of USD 460 million, the companies said.

CH-AUTO started its business of automotive design service in 2003. CH-AUTO, through its automotive design service, is proud of its contribution to increasing the process of the Chinese auto industry's annual output from 2 million to nearly 30 million vehicles during the past nearly 20 years, along with the transformation of the industry from imitation to innovation. As a design service provider to major mainstream Chinese auto brands such as Geely, Chery, FAW and GAC, CH-AUTO has led and participated in the design and development of more than 100 automobile models. CH-AUTO has also developed in-depth strategic cooperation with GFG Progetti SRL, a leading automobile design company founded by Italian design master Giorgetto Giugiaro, through a joint venture design company in Shanghai in 2019.

In 2015, CH-AUTO established a wholly-owned subsidiary QIANTU MOTOR (QT), aiming to build an electric vehicle brand for the global market. In 2018, QIANTU MOTOR’s first all-electric urban super sports car, Qiantu K50, was launched in production. Qiantu K50 is China’s first volume-produced all-electric super sports car and uses an aluminium-carbon fibre mechanical structure and a dual-motor all-wheel-drive system. In addition, according to CH-AUTO’s records, the unique battery safety management system of QIANTU MOTOR has maintained a record of zero battery fire accidents. CH-AUTO expects to release its Qiantu K20 model targeting the young Gen-Z customers with an affordable price in the second half of 2022.