At the end of the IPO, BAIC Autonomous "Transfusion"

After ten years of advancement, the BAIC Group finally ushered in a substantial break.

On December 8, Beijing Automobile Co., Ltd. (hereinafter referred to as “Beiqi”) passed the Hong Kong Stock Exchange and issued a prospectus on the official website the following day.

According to the prospectus, Beiqi Co., Ltd. plans to issue approximately 1.239 billion shares worldwide, offering share prices ranging from HK$7.6 to HK$9.8 per share. The financing scale is from US$1.22 billion to US$1.57 billion, of which 95% are international offerings. 5% for the Hong Kong offering, December 12 pricing, the fastest will be on December 19 listed on the main board of the Stock Exchange. After the successful listing, BAIC will become the second-largest passenger vehicle manufacturer listed on the Hong Kong Stock Exchange.

As of the press release, the reporter called the relevant person in charge of the Beijing Automotive Group. The other party responded with "No information available for disclosure". At the critical moment of the dream of a decade, Beiqi was quite cautious.

As the fifth largest passenger vehicle manufacturer in China, BAIC Group is the last large-scale state-owned automobile company listed in China. In 2014, it was ranked 248th among Fortune Global 500 companies. In terms of specific business, the main business of BAIC shares consists of three major segments, including Beijing Automotive, Beijing Benz and the joint venture company Beijing Hyundai.

It is reported that 60% of financing proceeds will be used for fixed asset investment, of which 85% will be used for Beijing Benz and 15% for Beijing Auto. In addition to fixed asset investment, 10% of the total fundraising will be used for the development of BAIC Passenger Vehicles; 5% for the development of sales networks and the promotion of Beijing auto passenger vehicles; and 15% for the repayment of bank loans. This means that at least 24% of the funds raised this time will be transfused to independent brands. In the expansion plan of Beiqi, the self-owned brand projects are still the focus of development.

Zhang Zhiyong, a senior analyst in the automotive industry, told reporters that the ultimate goal of BAIC financing is to develop its own brand, and listing will have greater effect on BAIC's development of self-owned brands. "Implementing the listing will help solve some of the capital requirements of Beiqi's own brands, and it will also enhance Beiqi's own brand image. However, the development of the brand is also a long-term process."

In recent years, the layout of Beijing Auto's autonomous passenger car has begun to take shape. In order to build its own brand, Beijing Automotive invested tens of billions of yuan in capital, but due to the fact that most products have not yet reached the payback period, the funding gap is huge. According to public statistics, in 2013, the sales revenue of Beijing Automotive Co., Ltd. was 12.78 billion yuan, and the annual profit was 3.01 billion yuan. The self-owned brand segment is still in a loss state, and its operating loss in 2013 reached 2.75 billion yuan.

Zhang Zhiyong told reporters that the obvious loss of its own brand has also brought about a clear reaction to the listing of Beiqi. How Beiqi builds its own brand depends on its quality. At the same time, it should make full use of the government's resources to lay the "Beijing local card" first.

In accordance with Beiqi’s plans, after the listing, the company will further improve the distribution network of Beijing Automobiles, increase the distribution stores in the first and second-tier cities in the coastal areas of Guangdong, Fujian, Guangxi, Zhejiang, and Jiangsu, and at the same time improve the penetration of Beijing Auto in the third and fourth-tier cities. rate.