Beiqi New Energy Reorganization approved will become the first domestic new energy car

On the evening of April 27, the SST striker issued an announcement saying that the company's major asset restructuring was approved by the China Securities Regulatory Commission's merger and acquisition committee. This means that BAIC's new energy listing route is clearer, and if it is successfully listed, it will become the first unit of new energy vehicles in the domestic capital market.

What is the relationship between the SST striker reorganization and the listing of BaIC New Energy? It also needs to start with the strategic planning of BaIC New Energy:

Beiqi New Energy was established in 2009, and Beiqi Group has always been an independent listing for its planning. As a result, the Division has been preparing for the transition from limited to joint-stock companies since 2014. In 2016, the reform of hybrid ownership was launched, and 3 billion Yuan A round of financing was completed. A total of 22 non-state-owned capital were attracted to participate in the capital increase and the total shareholding ratio reached 37.5 %. In 2017, the Division further completed the B round of financing, raising a total of 11.118 billion Yuan, and the market value rose to 28 billion yuan at the same time. After the B round of financing, the number of new energy shareholders of Beiqi increased to 33. At the same time, it also completed the employee shareholding plan, which can be said to be ready for listing.

However, according to the A-share listing conditions, three years of continuous profit is a necessary condition. Although Beiqi New Energy has been selling well, it sold more than 100,000 vehicles in 2017, accounting for 23 % of the domestic market share of new energy vehicles in 2017, ranking first in domestic pure electric vehicle sales for the fifth consecutive year. However, in terms of revenue in recent years, both 2014 and 2015 are losses, and only 2016 has achieved a profit(net profit of 108 million Yuan), which means that Beiqi New Energy must ensure that it will continue to make profits in 2017 and 2018 before it can be completed in 2019. Listing. When the listed company's profit requirements are met, it is obviously not fast enough to use the backdoor, and the reorganization of the SST forward has created conditions for it.

Information on the transfer of shares between the two parties has been previously disclosed. On December 26, 2017, the SST striker issued an announcement stating that the Beijing SASAC agreed to transfer 100 % of the 100 % stake in Sichuan Xintaike directly held by the Beijing Capital Enterprise Group Co., Ltd. to Beiqi Group, Sichuan Xintaike. Holding 81.27 million shares of SST forward, accounting for 41.13 % of the total share capital, For SST forward controlling shareholder. For this reason, Beiqi Group became a controlling shareholder of SST forward.

On January 22 of this year, SST forward also issued a document stating that it intends to use all assets and liabilities held as of October 31, 2017 and the equivalent of Beijing New Energy Automobile Co., Ltd. held by Beiqi Group as of October 31, 2017. The replacement will be undertaken by Beiqi Group to appoint Sichuan Xintaek Digital Equipment Co., Ltd.. At the same time, the company issued shares to Beiqi Group and other Beiqi New Energy shareholders to purchase all the remaining shares of Beiqi New Energy held by it, and plans to raise supporting funds for the non-public issuance of shares by no more than 10 eligible specific investors. The total amount of supporting financing shall not exceed 100 % of the transaction price of the assets to be purchased and shall not exceed 200,000 yuan.

Just three months later, the approval of this major asset restructuring event meant that Beiqi New Energy's listing was not far off. At the 2018 Beijing International Auto Show, Xuheyi, chairman of Beiqi Group, publicly stated that Beiqi New Energy will be listed in the third quarter of this year.

During the 13th Five-Year Plan period, Beiqi New Energy proposed the "5615" development goal, of which "5" refers to an annual production and sales of 500,000 vehicles(including 300,000 new platforms); "6" means that the annual operating income reaches 60 billion Yuan; "1" refers to the fact that companies are listed and the market value reaches 100 billion Yuan; "5" refers to the implementation of five major strategies, including quality growth, innovative development, service transformation, Internet +, and open cooperation. The goal of listing is about to be achieved, and the realization of this goal will also become an accelerator for other goals, boosting the development of the strategic blueprint of Beiqi New Energy in a higher direction.

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