Chinese electric car startup Ling Pao (Lip Motor) will be listed on the Hong Kong Exchange. As more than 20% of China’s new car market is turned into electric vehicles, new electric vehicle companies are also growing rapidly.
According to Pengpai and others on the 29th, Lingpao submitted an application for listing review to raise 11.7 billion yuan worth of funds. Earlier, the China Securities Supervisory Commission gave Lingpao permission to list up to 291 million shares on the Hong Kong stock market. Lingpao shares are expected to start trading as early as September.
Lingpao was established in Hangzhou, Zhejiang Province in 2015 and began producing electric vehicles in June 2019. It achieved cumulative production of 100,000 units in June, the first time in three years. Following Wei Lai, Xiao Feng, and Li Xiang, who are called the first generation of new electric vehicle forces in China, they are considered the second generation of new forces along with Wei Ma and Nata.
In the first seven months of this year, cumulative sales reached 64,017 units, already exceeding the total sales of 44,906 units last year. In April, it topped the list of new forces for the first time, beating competitors who had slowed down due to the Shanghai blockade while selling 9,087 units. There are a total of four types of vehicles, including C11, a medium-sized sedan, C01 and S01, and a small sedan T03. The price range of the C11 is 230,000 yuan (about 40,000 dollars), which is cheaper than the starters.
Sales are increasing rapidly thanks to increased sales, but deficits are also accumulating. Annual sales surged to 11.69 million yuan in 2019, 63.13 million yuan in 2020, and 313.2 million yuan in 2021. However, it posted a net loss of 284.57 million yuan in 2021, which is close to sales.
The founder of Lingpao is Zhang Zhengming, one of the co-founders of China’s largest security company Dahwa. Since its establishment, Lingpao has maintained a public-private equity structure with investments from the Zhejiang government and Zhongshin Securities, a state-owned financial company.
Wei Lai, Xiao Feng and Li Xiang, the first generation of new electric vehicle powers, were all listed on the New York Stock Exchange and then listed in Hong Kong for the second time or twice this year. Among the second generation, Weima applied for listing in Hong Kong in June, and Nata is weighing the Hong Kong and Shanghai stock markets.
EJ SONG
ASIA JOURNAL
