Hozon had annual losses of RMB 4.8 billion, RMB 6.7 billion and RMB 6.9 billion for 2021-2023.
Neta Auto parent Hozon New Energy Automobile Co Ltd has filed an application to list in Hong Kong, as it seeks new financing to support further growth.
Hozon's joint sponsors for the Hong Kong listing include CICC, Morgan Stanley, CITIC Securities, ABCI Capital, and CMB International, according to today's Hong Kong Stock Exchange filing.
The company filed a first version of its prospectus, which gives a detailed description of its business but makes no mention of an expected listing date or the number of shares it plans to issue.
Hozon was founded in October 2014 and received its vehicle production qualification approved by China's economic planner, the National Development and Reform Commission, in April 2017. In November 2018, Neta's first model, the N01, was launched.
Neta has completed at least 10 rounds of financing, with a total disclosed funding amount of over RMB 20 billion ($2.75 billion).
In September 2017, Neta secured a RMB 2 billion angel round of financing and a RMB 1.25 billion Series A round in December of the same year.
Between April 2019 and July 2022, Neta secured Series B to Series D financing totaling billions of RMB.
On August 29, 2023, Neta said it completed a Crossover round of financing in the amount of RMB 7 billion.
Crossover rounds are different from the common Series A, B, and C rounds, which are usually the final financing before a company goes public.
Neta's current models sold in China include the Neta X, Neta GT, Neta S, Neta Aya, and Neta L, primarily targeting a price range of RMB100,000 ($13,800) to RMB200,000.
While the $15,000 to $45,000 market that Hozon is positioning itself in is the most competitive new energy vehicle (NEV) segment, the company believes that any vehicle company that has established a leading position in this market segment is expected to obtain competitive edge and achieve sustainable growth, it wrote in the prospectus.
Neta's annual deliveries for 2020-2023 were 15,296, 69,674, 152,073 and 127,496, respectively, with year-on-year growth rates of 355.50 percent, 118.26 percent and -16.16 percent for 2021-2023, according to its previously announced figures.
In its latest prospectus document, Hozon said it delivered 64,230 vehicles in 2021 and 124,189 in 2023.
The company has entered overseas markets, exporting 17,019 vehicles in 2023, accounting for 13.7 percent of its annual sales.
Hozon's annual revenue for 2021-2023 was RMB 5.1 billion, RMB 13 billion, and RMB 13.6 billion, respectively, according to its prospectus.
Its losses in those three years were RMB 4.8 billion, RMB 6.7 billion, and RMB 6.9 billion, respectively.
Hozon's cash and cash equivalents at the end of 2023 were RMB 2.8 billion.
Neta has had a weak start this year in terms of sales, with deliveries of 43,564 vehicles in the January-May period, down 13.37 percent year-on-year, according to its previously announced figures.
Hozon blamed the decline in its latest prospectus filing on its efforts to streamline its domestic production capacity and global supply structure and further international initiatives, which temporarily impacted vehicle production.
($1 = RMB 7.2630)
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