Shanghai (Gasgoo)- SST Qianfeng announced on Apr. 27 that its significant asset reorganization has been approved by China Security Regulatory Commission. The move indicates that BAIC BJEV has made a great progress on its way to be a listed company. If BAIC BJEV can be listed on a stock exchange successfully, it will be the first listed NEV maker in domestic capital market.
Founded in 2009, BAIC BJEV has been seeking to be listed on a stock exchange independently. Therefore, the automaker started to make preparations on listing since 2014. BAIC BJEV started the mixed ownership revolution in 2016 and closed RMB 3 billion A-round funding. In 2017, the automaker finished RMB 11.118 billion B-round funding with market value reaching RMB 28 billion. After B-round funding, BAIC BJEV's shareholders increased to 33. At the same time, it also completed the plan of employee stock ownership.
Generally speaking, only earning profits 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. In 2016, BAIC BJEV started to turn loss into profits with net profit of RMB 108 million. This means if it doesn't rely on any other listed companies, BAIC BJEV must gain profits in 2017 and 2018, thus it is qualified to be listed on a stock exchange in 2019. The fastest way to be a listed company is by way of backdoor listing.
On Jan. 22, SST Qianfeng planned to acquire whole stake and liabilities of BAIC BJEV from its 36 shareholders including BAIC Group with a total of RMB 28.85 billion. Three months later, the significant asset reorganization was approved, indicating that BIAC BJEV will be listed on a stock exchange soon. Moreover, Xu Heyi, president of BAIC Group exposed at Auto China 2018 that BAIC BJEV will be listed on a stock exchange in the third quarter this year.
During the 13th five-year plan, BAIC BJEV put forward development goals dubbed "5615". Specifically, "5" means BAIC BJEV aims to have an annual production capacity of 500,000 vehicles. "6" means that the company targets to have annual revenue of RMB 60 billion. "1" demonstrates that BAIC BJEV is ambitious to have market value of RMB 100 billion after it is listed on a stock exchange. "5" indicates that BAIC BJEV will implement five strategies, including quality growth, innovation development, service transition as well as opening up and cooperation. The goal of being a listed company will be realized soon, which will help the NEV maker to realize other goals faster and boost the development of its NEV strategy.
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