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

Automotive Author: Fuller Wang, Reuters, Mountain Crest Acq May 02, 2022 04:27 PM (GMT+8)

CH-AUTO is a Chinese automotive manufacturer headquartered in Beijing, specializing in electric vehicle manufacturing, automotive design service, and automotive parts manufacturing.

2022 Research Report on the brand competition pattern of China's intelligent electric vehicles

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.