Changjiang Business Daily News ● Changjiang Business Daily reporter, Li Qiguang
Avita’s first car is approaching the market, and the company has received a huge amount of financing.
On August 2, Changan Automobile (000625.SZ) announced that the company’s joint venture Avita introduced investors by way of public listing to enhance its core competitiveness, and finally determined six investors such as the national green development fund joint stock company, with a total capital increase of 2.547 billion yuan.
As of March 31, 2022, Avita Technology’s valuation has reached 6.32 billion yuan, 2.164 billion yuan compared with its net asset carrying value, and the value-added rate is 192.08%.
The Yangtze River Business Daily reporter found that on November 5, 2021, when Avita first increased its capital and shares through public listing, the disclosed valuation was 788.20 million yuan, an increase of 7 times in only 5 months.
In this financing, Changan Automobile invested 1.169 billion yuan, and the shareholding ratio increased from 39.02% to 40.99% after the capital increase was completed. While Ningde Times did not participate in the capital increase, the shareholding ratio was diluted from 23.99% to 17.10%, but it was still the second largest shareholder.
It is understood that according to the plan, Avita’s first smart electric coupe SUV Avita 11 and its limited edition Avita 011 will be officially launched on August 8.
Valuation of 6.32 billion 7 times in 5 months
On the evening of August 2, Changan Automobile announced that the company’s joint venture, Avita Technology (Chongqing) Co., Ltd. (referred to as "Avita"), in order to enhance its core competitiveness, strengthen the coordination of industrial chain resources, and promote the accelerated development of intelligent electric vehicle (SEV) business, introduced investors in the Chongqing Stock Exchange by way of public listing, and finally determined that six investors including the National Green Development Fund and Jiaxing Juli Fund increased their capital by 2.547 billion yuan.
Among them, Changan Automobile invested 1.169 billion yuan. After the capital increase was completed, the shareholding ratio increased from 39.02% to 40.99%. It is still a joint venture and continues to use the equity method for accounting.
The announcement shows that as of March 31, 2022, the valuation of Avita Technology has reached 6.32 billion yuan, which is 2.164 billion yuan compared with its net asset carrying value, and the value-added rate is 192.08%.
On November 5, 2021, when Avita first increased its capital and shares through public listing, the disclosed valuation was 788.20 million yuan, an increase of 7 times in only 5 months.
At present, Avita has signed a strategic cooperation agreement with the above-mentioned new investors, and plans to carry out strategic cooperation in the fields of sales network support, chip supply and visual image perception, intelligent cockpit development, etc., to further strengthen the resource advantage of the industrial chain.
This time, Avita plans to add a registered capital of about 472 million yuan, and the registered capital is increased from 1.172 billion yuan to 1.645 billion yuan. According to the financing amount of 2.547 billion yuan, the capital increase price is equivalent to 5.40 yuan per yuan of registered capital.
In addition to Changan Automobile’s capital increase of 1.169 billion yuan, Southern Assets plans to increase capital by 100 million yuan, Green Fund plans to increase capital by 480 million yuan, Jiaxing Cohesion Fund plans to increase capital by 230 million yuan, Qingdao Yuewan Fund plans to increase capital by 158 million yuan, Huzhou Chuangsheng Chi Ming Fund plans to increase capital by 150 million yuan, Chongqing Chengan Fund Phase II plans to increase capital by 100 million yuan, Tianjin Weihao Haihe Fund plans to increase capital by 70 million yuan, Ningbo Yongxin Weihao Fund plans to increase capital by 60 million yuan, Yiwu Weihao Chuangxin Fund plans to increase capital by 30 million yuan (Tianjin Weihao Haihe Fund, Ningbo Yongxin Weihao Fund and Yiwu Weihao Chuangxin Fund are consortia).
It should be noted that the original shareholders Ningde Times, Chongqing Chengan Fund Phase I, Fujian Mindong, Two Jiangxi Securities, Southern Industrial Fund and NIO did not participate in the capital increase, and their shareholding ratio will be passively diluted accordingly.
Among them, CATL shareholding ratio diluted from 23.99% to 17.10%, but still the second largest shareholder; NIO shareholding ratio diluted from 1.13% to 0.81%.
Changan Automobile said that Avita is an important exploration of the company’s high-end new energy, intelligent and innovative cooperation model, and an important practice of the company’s own brand upward strategy. Avita brings together the unique advantages of Changan and Ningde in the field of intelligent vehicle research and development, intelligent vehicle solutions and smart energy ecology, and joins hands to create the world’s leading intelligent electric vehicle technology platform – CHN, dedicated to building an international high-end Chinese SEV brand.
The first car is planned to be launched within a month
According to the data, Avita was formerly known as Changan Automobile and NIO New Energy Vehicle Technology Co., Ltd., which was established on July 10, 2018. The two parties each hold 50% of the shares. The main business model and profit model are the design, development, sales and service of new energy vehicles and parts.
On May 17, 2021, Changan NIO New Energy Vehicle Technology Co., Ltd. was renamed Avita Technology (Chongqing) Co., Ltd. and began market-oriented operations.
At the same time, Avita said that Changan Automobile, Huawei, and Ningde Times will jointly build a smart electric connected vehicle platform for it.
On August 23, 2021, Avita increased its capital and shares by publicly listing on the Chongqing Property Exchange, and introduced Ningde Times to increase its capital.
After the capital increase was completed in March 2022, Avita’s registered capital was increased from RMB 288 million to RMB 1.17 billion, and Changan Automobile’s shareholding ratio was diluted from 95.38% to 39.02%, making it the largest shareholder; CATL held 23.99%, making it the second largest shareholder; NIO held 1.13%.
Announcement shows that in 2021, Avita revenue is 0 yuan, net loss 209 million yuan; this year’s Quarter 1 revenue is 0 yuan, net loss 61.4048 million yuan.
Avita’s first model, the Avita 11, will be officially launched in August and will be delivered within the year. The model is equipped with Huawei inside (HI) Huawei’s full-stack smart car solution, which is jointly developed by Huawei and Avita. BAIC, GAC and other car companies have also adopted the cooperation model with Huawei.
Avita said that the new round of fundraising will further accelerate the R & D design and market brand development of Avita’s future products, and the second new car is currently being advanced in an orderly manner.
"I used to have a quarterly meeting with Xu Zhijun (Huawei’s rotating chairperson) and Yu Chengdong (Huawei’s managing director and CEO of Smart Vehicle Solutions BU). This year, Avita products are about to be released, and the whole line of business is speeding up. Our meeting has become a monthly meeting." Zhu Huarong, chairperson of Changan Automobile, said publicly at the annual results presentation in April 2022.
According to the plan, in the next five to ten years, Changan Automobile will focus on the field of new energy to achieve double improvement in sales and efficiency. By 2025, Changan new energy sales target 1.05 million vehicles, accounting for 35%; 2030 new energy sales target 2.70 million vehicles, accounting for 60%.
According to the plan, Avita’s first smart electric coupe SUV, Avita 11, and its limited edition Avita 011 will be officially launched on August 8. The first batch of offline experience centers will also be opened simultaneously and delivered within the year. The second new car is also being advanced in an orderly manner.
In addition, it is reported that Avita Technology has plans to go public independently in the future.