Shanghai (Gasgoo)- Chengdu Chiffo Electronic Co., Ltd (Chiffo) signed an agreement with all shareholders of BAIC BJEV on Jan. 22, saying Chiffo plans to acquire whole stake of BAIC BJEV from its 36 shareholders including BAIC Group with a total of RMB 28.85 billion.
This signifies that BAIC BJEV will achieve back-door listing through the listed company, Chiffo. Industry insiders analyzed that BAIC BJEV will be BAIC Group's first listed company who enters into A-share market as well as the second listed company of BAIC Group.
BAIC BJEV performed quite well in the past two years. During the previous ten month of 2017, BAIC BJEV gained revenue of RMB 7.377 billion and net profit of RMB 39.244 million. Its annual revenue and net profit reached RMB 9.372 billion and RMB 108 million respectively in 2016.
Thanks to the remarkable financial results, BAIC Group believed that it's high time for BAIC BJEV to be listed on a stock exchange. Generally speaking, only earning profit for three consecutive years can a company be listed on a stock exchange. BAIC BJEV suffered a loss of RMB 244 million and RMB 194 million in 2014 and 2015 respectively. BAIC BJEV can be listed on a stock exchange in 2019 if it doesn't rely on any other listed companies.
Not long ago, BAIC Group had announced a development goal that it will ban the sales of self-owned fuel-powered passenger vehicles in Beijing by 2020 firstly, and then will stop selling fuel-powered vehicles across China by 2025. Only has BAIC BJEV been listed on the stock exchange can BAIC Group achieve the goal. Thus, the cost-effective way for BAIC BJEV to be a listed company is to achieve back-door listing through Chiffo. This move will bring forth a win-win situation for both BAIC BJEV and Chiffo.
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