Chery Auto said to file for IPO in 2022
Beijing (Gasgoo)- Chery Auto is reported to pursue an IPO in China’s A share market in 2022, for it is projected to gain profit over RMB1.3 billion this year.
The Tiggo 7 PLUS; photo credit: Chery Auto
Records show, Chery Auto, an independent brand from Chery Holding, reported RMB34.76 billion in revenue in 2020, edging up year on year. However, the company only saw an annual net profit of RMB7.37 million, significantly plummeting from 2019’s RMB392 million, losing RMB288 million in the first half of the year.
During the same year, Chery Holding earned RMB25.37 billion, with an annual profit of RMB1.17 billion. The group saw an RMB131 million revenue increase compared to 2019 but dropped RMB50 million from 2018.
According to the China Passenger Car Association, Chery Auto sold 134,800 vehicles in H1 2020 and 281,500 vehicles during the rest of the year. During the first six months of this year, the brand celebrated a 95% year-on-year increase in sales to 284,000 vehicles. If the brand can keep its momentum, an annual sales volume of over 500,000 vehicles will be expected this year, with at least RMB1.3 billion in profit.
Moreover, due to the preparation for IPO, Chery Auto has liquidated several of its major assets. In 2016, the company sold its gearbox factory for RMB2.6 billion. For RMB6.5 billion, the company sold its stake in Qoros to Baoneng Group in 2017. Chery Auto then transferred its 51% stake in Cowin Auto to liquor giant Wuliangye for RMB2.7 billion in 2018.
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