The "third third" in the domestic power battery market, China Chuang Sina Airlines officially launched to be listed in Hong Kong!

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China New Airlines, which ranks third in the domestic power battery market, officially launched its listing in Hong Kong.

On December 29, the China Securities Regulatory Commission (CSRC) disclosed that it had received the approval materials of overseas initial public offering shares (including common shares, preferred shares and other stocks and derivative forms of stocks) of China Chuang Xinhang Technology Co., Ltd. (hereinafter referred to as "China Chuang Xin Airlines"). This also means that China Innovation Airlines will officially launch IPO to Hong Kong. This is also the first company to submit an application for listing of H shares after the draft of the new regulations issued by the International Department of the Securities Regulatory Commission.

In the power battery industry, AVIC Lithium, another name of AVIC, is little known. Enterprise check shows that in November this year, a number of industrial and commercial information of Innovation Airlines changed and the shareholding transformation was completed. At the same time, the name of the company also changed from AVIC Lithium Electric Technology Co., Ltd to China Chuang Xinhang Technology Co., Ltd.

The biggest "dark horse" in the power battery world

China New Airlines is one of the forerunners in China's power battery market. As early as 2007, Sky Energy (Luoyang) Co., Ltd., the predecessor of China New Airlines, was established in Luoyang. In mid-2010, Sichuan Chengfei Integrated Technology Co., Ltd. joined AVIC Lithium.

With the development of new energy vehicle industry, Chengfei Integration adjusts lithium battery business as one of the core main businesses. To this end, Chengfei integrated operating performance through lithium battery business greatly improved. However, the good times will not last long. With the adjustment of the subsidy policy for new energy vehicles, the requirements for power battery mileage have been increased, so ternary lithium batteries with higher energy density have become the "hot cake" of car companies.

With lithium iron phosphate as the main route, AVIC Lithium seems to have lost an excellent opportunity?

No. In 2018, AVIC lithium battery ushered in new development opportunities. In July 2018, Shi Xiaoqing, chairman of Chengfei Integration, no longer served as the legal representative of AVIC Lithium Power (Jiangsu), and Liu Jingyu, who was born in 1970, became the chairman of the company. At this point, AVIC Lithium opened the road of vigorous change.

After Liu Jingyu took office, the company adjusted the direction of business development, from the previous commercial vehicle matching to the passenger car market, and began to focus on the layout of ternary lithium batteries.

Since then, AVIC Lithium's national power battery market share has grown by leaps and bounds.

According to data from the Battery Alliance, in the first 11 months of 2021, China Chuangxin Airlines ranked third in the list of power battery companies in China, with a market share of 5.8%, second only to Ningde Times and BYD. In the international market, Sinovel ranks seventh, with a market share of 2.4%.

Race against the clock to expand production capacity

In order to seize market share, Sinovel has accelerated the pace of production expansion with the trend of "racing against the clock" since the beginning of this year:

In January, the investment plan of the fourth phase of Changzhou project (25GWh) was announced.

In April, it was announced that it planned to build a new Chengdu production base in Chengdu (50GWh) in the Economic Development District of Chengdu.

In May, the third phase of Xiamen production expansion Project (30GWh) was released.

In May, it announced plans to build a new power and energy storage battery project (20GWh) in Wuhan Economic Development area.

In August, it announced plans to build a mobile storage battery project (50GWh) in Hefei.

According to this plan, it is expected that the production capacity of Sinovel Airlines will reach 200GWh in 2022.

Since 2021, China New Airlines has accelerated its expansion of industrial layout, and has set up seven industrial bases in Changzhou, Luoyang, Xiamen, Chengdu, Wuhan, Hefei and Heilongjiang, and constructed the development model of industrial clusters. it is planned to form industrial clusters in the Pearl River Delta, Yangtze River Delta, Southwest region, Central region and Northeast region.

At the same time, the company plans to build overseas industrial bases in Europe and North America, forming four major R & D centers in Shenzhen, Shanghai, Changzhou and Chengdu, planning R & D centers in Europe, North America and Japan, and will carry out new R & D layout in the future. continue to build a global R & D network. The company's planned production capacity will exceed 500 GWH in 2025 and 1TWh is expected to reach in 2030.

At present, AVIC Lithium has become an important battery supplier for Dongfeng, Changan, Guangzhou Automobile, Geely, SAIC GM Wuling, Jinkang and other car companies. And the company is entering the stage of technological development with FAW, SAIC, Great Wall, Volkswagen and Daimler, paving the way for further cooperation.

Officially open the way for IPO to go public

Yan Jinghui, an expert in the automobile industry, said that in order to compete for share, expanding production capacity has become an important starting point for domestic power trams. However, the expansion of production capacity of investment projects requires a lot of financial support, which also makes the domestic power battery industry accelerate the landing of capital market reserves.

As a matter of fact, landing in the capital market has long been in the plan of China New Airlines.

The first is the restructuring and renaming of the company. Enterprise check shows that in November this year, a number of industrial and commercial information of Innovation Airlines changed and the shareholding transformation was completed. At the same time, the name of the company also changed from AVIC Lithium Electric Technology Co., Ltd to China Chuang Xinhang Technology Co., Ltd.

Secondly, before landing in the capital market, Sinotrans has completed several rounds of financing. Enterprise investigation shows that in June 2019, China New Airlines completed equity financing, including Chengfei Integration, Jinyuan Group, Jintan Investment and so on.

On December 15, 2020, Sinovel completed the Pre-A round of financing, with investors including Xiaomi Yangtze River Industrial Fund, Sequoia Capital China, Guangzhou Automobile Capital, China Insurance Investment Fund and other 29 investment institutions. On June 27, 2019, AVIC Lithium completed equity financing, including Chengfei Integration, Jinyuan Group, Jintan Investment and so on.

In September 2021, Wechat, official of Sinovel, revealed that the company had recently completed a new round of equity financing of 12 billion yuan.

It is worth mentioning that after the completion of the two rounds of financing, the post-investment valuation of Sinovel may have exceeded 50 billion yuan, more than 80% of the A-share listed companies.

On the way to prepare for the listing of IPO, Sinotrans has experienced some twists and turns. On July 21 this year, Ningde Times sued China New Aviation Power Battery infringement, but so far the lawsuit is still under trial.

According to professional analysis, if the issuer has a pending lawsuit, for the regulatory authorities, the focus of its review is not on the existence of the litigation itself, but on the controllability of the risks brought about by the litigation and the substantial impact of the litigation on the issuer. Before that, there was a precedent for the successful listing of Minxin shares, Honghe Technology and so on. Therefore, the existence of litigation does not necessarily affect the listing process of the company, and this fact is also confirmed by Sinovel's choice to submit a listing application to the international department of the CSRC as planned.

In the past two years, China New Airlines has been running wild all the way, with a rising market share, and has grown into a leading enterprise in the domestic power battery market. If the IPO in Hong Kong is successful, it will not only push China Innovation Airlines to a new peak, but also intensify competition in the entire power battery market.