You might find it interesting to know that Neta Auto, a prominent Chinese electric vehicle (EV) manufacturer, has recently initiated the preparatory steps for its initial public offering (IPO) in Hong Kong. This significant move, reported by the Chinese tech media outlet First Electric, was initiated in the last quarter of the previous year. Remarkably, the cornerstone investment for this venture has surpassed an impressive 20 billion RMB (approximately US$2.97 billion).
Robust financing rounds fuel Neta Auto's growth
As you explore further, you'll discover that successful financing rounds have marked Neta Auto's journey to this point. The company has completed no less than 10 financing rounds, accumulating a disclosed total exceeding 20 billion RMB. This noteworthy achievement includes investments from influential backers such as Deep Creation Investment, CRRC Capital, CATL, and 360. Most recently, on August 30, Neta Auto raised a substantial 7 billion RMB (over US$1 billion) in a Crossover financing round.
Employee bonus controversy and sales performance
Amidst these financial successes, Neta Auto has faced its share of challenges, including recent online rumours concerning the delay of employee year-end bonuses. Initially promised for the first week after the holiday season, there was a delay, sparking concerns among the workforce. In response to these rumours, Neta Auto's CEO, Zhang Yong, clarified that the 2023 year-end bonuses were contingent on performance evaluations. He assured that the final distribution of these bonuses, based on annual performance coefficients, would be completed and distributed in March.
In terms of sales, Neta Auto delivered 10,032 vehicles in January 2024, of which 2,821 were sold overseas. This achievement follows a period of reflection by Zhang Yong on the decline in sales during 2023. He attributed this downturn to several factors, including the high pricing of new products, delayed adjustments in the latter half of the year, missed opportunities, and outdated strategies. This honest assessment underscores the challenges faced by the EV industry and the need for constant innovation and adaptation.
Conclusion
In conclusion, Neta Auto's move towards a Hong Kong IPO, bolstered by significant cornerstone investment, marks a crucial phase in the company's expansion. Despite the hurdles, including the controversy over employee bonuses and a dip in sales, Neta Auto's strategic financial planning and continued product development signal a robust future trajectory in the competitive EV market.
