Byton Motors has completed three rounds of financing, but it still has 800 million arrears but it is boldly going to go public
On September 28 this year, through its parent company Nanjing Zhixing, Byton Motors acquired FAW Huali for 1 yuan and obtained the passenger car production qualification coveted by new car manufacturers. But at the same time, FAW Huali's high debt has also been passed on to Byton, and it needs to pay no less than 800 million yuan in arrears for this. As an electric vehicle start-up, Byton Motors has completed three rounds of financing, among which the B round of financing is the most sensational: FAW Group leads the investment, and CATL is a follow-up investment, financing 500 million US dollars. However, compared with Weilai Automobile and Weimar Automobile, Byton Automobile's accumulated financing amount is still very small. Up to now, it is only 800 million US dollars, which is less than one-third of the "20 billion yuan" vehicle threshold often said in the industry. one. Therefore, after FAW Group received over 1 trillion yuan in credit from 16 banks, Byton Auto, which was short of money, was not calm immediately. Its CEO Bi Fukang stated that Byton Auto would support business growth through IPO financing and explained that "Because this is a capital-intensive business (car building) and we want to expand, it makes sense to go public." But soon after the news of Byton Motors IPO was exposed, its insiders denied it. They said that Byton Motors is advancing the C round of financing to be launched next year as planned, and there is no IPO plan and timetable. Foreign media have expressed it's wrong. From this point of view, Byton’s IPO is probably an idea that its CEO Bi Fukang blurted out. It did not go through a strict internal plan. It is similar to Elon Musk’s announcement that Tesla will delist some time ago. Great credibility. But it is an indisputable fact that Byton Motors wants to raise Series C. On the one hand, it is because it is short of money. On the other hand, the government has also stated this many times. So, what does Byton Auto rely on for Series C financing? According to its official statement, the first concept car BYTON Concept will be the key. This car is expected to be mass-produced before the end of 2019, which will bring great confidence to investors. However, according to media reviews, BYTON Concept's reputation is not good. On the one hand, its steps on autonomous driving are too big, which makes people feel very exaggerated; on the other hand, the 50-inch large screen and other designs that flatter consumers , Revealing its immaturity for car building, lack of consideration for the safety of mass production. In addition, BYTON Concept, which is positioned as a luxury smart SUV, has an estimated starting price of 45,000 US dollars, which is higher than the starting price of Tesla Model 3. It is likely to be surrounded by luxury brand electric SUVs; according to the plan, Mercedes-Benz EQC, Audi e-tron and BMW Ix3 will all enter the Chinese market before the end of 2020. This will make many investors worry about the prospects of BYTON Concept. What's more unfavorable is that Byton Motors also faces the risk of not guaranteeing its production qualifications. In May of this year, FAW Huali was unable to maintain normal production and operation, and its vehicle production qualification was specially announced by the Ministry of Industry and Information Technology, and it entered a two-year special rectification period. After Byton Motors acquired FAW Huali, if the production and sales work cannot be successfully completed, the production qualification may be cancelled by the Ministry of Industry and Information Technology. Write at the end After the acquisition of FAW Huali spent 800 million yuan in cash flow, Byton, which was already short of money, had to gritted his teeth to support the Nanjing plant with a total investment of 11.07 billion yuan. This will be a great test. If the C round of financing, which is a matter of life and death, is not satisfactory, Byton Motors is likely to fall on the eve of BYTON Concept's mass production and eventually become a stepping stone for others to succeed. For Byton Motors, relying on FAW is a way of survival in the future. But to be close to the financial owners, Byton Motors must properly address the interests of shareholders. After all, many of its investors are companies with the background of the Nanjing State-owned Assets Supervision and Administration Commission. Tn Panel,Tn Lcd Display Module,Tn Positive Lcd Display Module,Tn Lcd Display Module Connector Huangshan Kaichi Technology Co.,Ltd , https://www.kaichitech.com