On July 22nd, Bloomberg News reported that Beijing New Energy has recently closed a Series B funding round totaling 11 billion yuan, with Beijing Automotive Group leading the investment. This achievement marks the largest amount of financing ever recorded in China’s new energy vehicle sector.
Just last August, BAIC New Energy completed a financing round worth 3 billion yuan. Major investors included Jingxi Venture Capital (Shougang Fund), Beijing Industrial Development Investment, Beijing Automotive Group, Beijing Electronics Holdings, and Beijing State-owned Capital.
According to Lei Feng Network, earlier this month, Beijing Automotive Group announced that they had signed a capital increase agreement with a new energy vehicle company. Beijing Auto has committed to subscribing for 220 million new shares in the new energy vehicle company, investing a total of 1.185 billion yuan in assets and cash.
Following the capital increase, the group will hold 7.6106% of the total equity in the new energy vehicle company, making them the sole controlling shareholder and holding 44.98% of the total issued share capital.
In early July, Beijing Automotive Group also signed a framework agreement with Daimler AG. In the latest announcement, Daimler confirmed their intention to strategically invest in BAIC New Energy Automobile Co., Ltd., a subsidiary of BAIC.
The IPO process of Beiqi has been a major topic of discussion among industry watchers. Zhang Xiyong, General Manager of Beijing Automotive Group, mentioned in an interview that they are considering listing options in either Shanghai or Hong Kong. His colleague, General Manager Zheng Gang, also disclosed that following the mixed-ownership reform, BAIC New Energy has adopted various financing methods, reducing its 100% state-owned capital ownership and incorporating an employee stock ownership plan.
If the planned IPO for 2018 succeeds, BAIC New Energy could very well become the first new energy vehicle stock to debut in China’s domestic capital market.
In the first half of this year, sales of BAIC’s new energy vehicles surpassed 30,000 units, representing a year-over-year growth of 99%. In June alone, 5,147 new energy vehicles were sold, marking a year-over-year increase of 25.5%. The company's goal is to reach annual sales of 500,000 vehicles by 2020.
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