More than half of Wuling Motor's proposed net rights issue of HK $538 million will be used for the research and development of new electric logistics vehicles.

On January 22nd, Wuling Motors announced that it had entered into a placing and subscription agreement to place 223 million new shares in the old and new way, with a placing price of HK $2.47 per share, a discount of about 9.85% to the closing price of HK $2.74 per share on the 21st. New shares account for about 6.76% of the total number of expanded issued shares.

According to the announcement, the net proceeds from the subscription will be approximately HK $537.8 million and will be used for the research and development of the Group's new electric logistics vehicles, repayment of certain interest-bearing short-term loans, working capital and general corporate uses.

Specifically, about HK $300 million, or about 55.8% of the net proceeds, is used for the research and development of the group's new electric logistics vehicles; about HK $95 million, or about 17.7% of the net proceeds, is used to repay some of the company's interest-bearing short-term loans; the remaining HK $142.8 million, accounting for about 26.5% of the net proceeds, for other business development or investment when there is an opportunity in the future, as well as for working capital and general corporate purposes.

It should be noted that SAIC GM Wuling is a big customer of Wuling Automobile, but the two are often confused.

Wuling Automobile Group holding Co., Ltd., whose full name is Wuling Automobile Group holding Co., Ltd., is founded by Liuzhou Wuling Automobile Group Co., Ltd. (now Guangxi Automobile Group Co., Ltd.) and Junshan Development Co., Ltd. in 2007. In September of the same year, it was listed in Hong Kong. The controlling shareholder is Guangxi Automobile Group Co., Ltd. Its main business is engaged in the manufacturing and sales of automotive engines, accessories and special purpose vehicles in China. Is a domestic commercial micro-engine and auto parts manufacturer, with the production of electric trucks qualification, manufacturing facilities are mainly located in Liuzhou and Qingdao. Liuzhou Wuling Automobile Industry Co., Ltd. is the main holding subsidiary of Wuling Automobile, with a stake of about 60.9%. Guangxi Automobile holds the remaining 39.1% stake in Liuzhou Wuling Automobile Industry Co., Ltd.

SAIC GM Wuling Automobile Co., Ltd., the full name of SAIC GM Wuling Automobile Co., Ltd., was established on November 18, 2002. It is a large-scale Sino-foreign joint venture automobile company jointly established by Shanghai Automobile Group Co., Ltd., General Motors (China) Co., Ltd., Guangxi Automobile Co., Ltd., its predecessor can be traced back to the Liuzhou Automobile Power Machinery Factory established in 1958. Among them, SAIC holds 50.1%, General Motors (China) Investment Co., Ltd. holds 10%, and Guangxi Automobile holds 5.8%.

In 2020, SAIC GM Wuling sold 174005 small pure electric vehicles, of which Hongguang MINIEV, the "people's scooter" listed on the market in July, topped the list of new energy sales in China for four consecutive months from September to December.