Geely Automobile Holdings Ltd. has submitted a prospectus and other information to the Shanghai Stock Exchange (SSE) on the evening of Sept. 1, and the SSE has accepted it, which indicates that Geely has officially started the countdown for listing on the KTB.

According to the prospectus submitted by Geely Automobile Holdings Ltd. to the SSE, the number of shares to be issued in the initial offering will not exceed 1,731,666,448 shares, which does not involve the public offering of shares by shareholders, and will not exceed the sum of the total number of issued shares and the number of RMB shares to be issued on the day prior to the day before the board of directors of the company that will consider the listing of the offering, which will be on June 23, 2020, and the number of RMB shares to be issued in this offering will not exceed 15.00%. The offering may be made under the over-allotment option, and the number of shares to be issued under the over-allotment option shall not exceed 15.00% of the initial number of shares to be issued.

The total proposed investment for the fund-raising investment project is ?2,042,453.00?000 yuan, of which ?2,000,000?000 yuan is proposed to be used in the fund-raising this time, which is mainly used for the research and development of new models, the research and development of forward-looking technologies, industrial acquisitions, and the replenishment of working capital.

This listing of Geely Automobile on the Science and Technology Board will not only facilitate mainland investors to invest in Geely Automobile, but will also make Geely Automobile more transparent. As the first car company with a red-chip structure to be listed on the SGX, Geely's trip is significant.

01

Returning to the board improves financing

Now Geely's return to listing on the board is in a quiet period, so brokers generally won't comment on Geely's return to the board. But we can still take a peek at the current situation.

In an interview with Geely's internal executives, "Vapor Talk" learned that the reason for this return to the board is, first of all, the guidance of the national strategy. In addition to this also mentioned two more key points, is the ability to finance and to science and technology and new energy transformation.

The return to the KTB can open up the domestic A-share capital market financing channels, which is conducive to Geely Automobile to further diversify the financing methods, reduce the gearing ratio, optimize the capital structure, the company's future layout of the "new four" and other strategic development of the capital needs will be greatly supplemented.

Because of the epidemic, the major car companies are not rich. According to the "steam pulling steak talk" from the Ping An Securities to understand the situation, Geely Automobile Co. 2020, the first half of the year revenue -23% year-on-year to 36.8 billion, net profit of -43% year-on-year to 2.296 billion, the net profit declined far more than the income, due to the impact of the epidemic of the first half of the year by 1 quarter, the company's gross margin decreased by 0.7 percentage points, the company's first half of the year, the company's first half of the year, the company's first half of the year, the gross profit margin decreased by 0.7 percentage points. 0.7?percentage points to?17.11%, selling expenses as a percentage of turnover increased?1.2?percentage points year-on-year to?5.9%, and administrative expenses as a percentage of turnover increased?2.1?percentage points year-on-year to 7.3%.2020?First-half operating cash flow was -3.24?billion yuan, turning from positive to negative, and inventory was?4.23?billion yuan, lower than?the end of?2019?year-end, and it is expected that that the second half of the year will see an improvement in all operating indicators against the backdrop of a relatively controlled epidemic.

On May 29 of this year, Geely Automobile made an announcement on the Roots General Mandate to Place New Shares. The company placed 600 million new shares at HK$10.8 per share, representing approximately 6.11% of the enlarged issued share capital of the Company. The Company intends to use such net proceeds for the Group's business development and general working capital. So this return to Cochise will give Geely a huge capital boost.

02

Transforming into a technology and new energy company

Despite the negative impact of the outbreak, Geely is still investing more and more in research and development, and is on the fast track to expand the company. According to Geely's disclosure, research and development expenses, which are included in administrative expenses, increased sharply by ?16 percent to ?1.72? billion yuan in the first half of 2020.

After entering the million-sales era, Geely is now at another bottleneck in the breakthrough to a new era. So Geely, which is in the midst of continuous expansion at this time, needs to greatly supplement the company's financing capacity. The A+H dual-financing capability will be a big help to Geely at this stage.

Geely is both a leading local brand in China and a fully internationalized enterprise, and listing in both A-share and Hong Kong will help consolidate and highlight the company's unique advantages and position, help Geely make better use of the resources of both the international and domestic markets, and boost Geely's technological transformation and long-term development in the future.

Now car companies are transforming into technology companies, such as the Great Wall Motors just announced some time ago to the future of technology travel company transformation, Geely Automobile is also in the structural transformation of science and technology as well as new energy, which is exactly the significance of the establishment of the Science and Technology Commission.

Science and Technology Creation Board and Nasdaq is the same, on the type of enterprise is selective. For example, in the choice of industry, the requirements are a new generation of information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, biomedicine and other high-tech industries, strategic emerging industries, science and technology enterprises. As well as scientific and technological innovation enterprises in the deep integration of the Internet, big data, cloud computing, artificial intelligence and manufacturing.

So Geely is both a leading representative of the automobile industry and a leading representative of the field of new energy technology in automobiles, returning to the Science and Technology Innovation Board.

03

Will become the first stock of science and technology board automobile

"Steam pulling steak talk" to get the recent Geely Automobile more than a dozen brokers research report to understand that the brokerage firms for Geely Automobile's new energy, automated driving, the future of the mobility business are unanimously optimistic about the future of the car in the development of the dominant position in the Geely Automobile. The development of Geely Automobile will occupy a dominant position.

This September the PMA platform will? be unveiled at the Beijing Auto Show, the platform adopts a new electronic and electrical architecture with OTA upgrade capability, covering?A00-class to C-class models. The first new car is a medium and large pure electric SUV, launched under the Link brand, and is expected to be launched in the second half of next year, and the second is an MPV. 2022 Geely and Smart products under the PMA architecture will also be put on the market. Western securities is expected to Waymo and Volvo will be based on the PMA platform *** with the research and development of L4 level of automated driving, followed by more brands to join the PMA "circle of friends", accelerating the run to automated driving.

The new generation of hybrid system against the Japanese system, the new car will be fully equipped with HEV version. The company carries GHS1.0 hybrid system product terminal acceptance is high, next year launched GHS2.0 hybrid system and Toyota THS, Honda iMMD system to start a head-on competition, the new car will also be fully equipped with HEV version, Geely is expected to become the first breakthrough in oil-electric hybrid technology of the independent brand.

And now Geely has a number of travel companies under its banner: Cao Cao Travel, Xiaolingdog Travel, National Railway Jixun, TERRAFUGIA, Yew Travel, and Volocopter, which encompasses all modes of travel from the ground to the sky. So this time, the absorption of the Science and Technology Board of Geely Automobile, but also in view of the Geely Automobile in new energy, technology, driverless scientific research capabilities and future layout.

The launch of the Science and Technology Innovation Board (STIB) is the country's grand strategy in guiding outstanding Chinese high-tech enterprises to return to the capital market of the motherland, such as Semiconductor Manufacturing International (SMIC) in the chip industry, Cambrian and so on. Geely Automobile is on behalf of the automobile industry in the leading return to the A shares, Geely Automobile will also become the first shares of the automobile of the Science and Technology Innovation Board, but also for the future automobile enterprises to log on the Science and Technology Innovation Board to play a leading role.

This article comes from the author of the automobile home car family number, does not represent the views of the automobile home position.