Hozon New Energy Automobile Co., Ltd., the parent company of NETA Auto, has recently submitted an application for listing on the Hong Kong Stock Exchange. If successful, NETA Auto will join the ranks of other Chinese startup carmakers such as Li Auto, NIO, XPENG, and Leapmotor in being listed in Hong Kong.
In April, Hozon Automobile announced that it had secured a significant investment of at least 5 billion yuan to support NETA Auto’s IPO and further expand its production and research and development efforts. Earlier in March, NETA Auto entered into a partnership with the Hong Kong government, receiving a 200-million HKD subsidy and a 200-million USD cornerstone investment.
With a total of 14 financing rounds completed, Hozon Automobile has raised nearly 30 billion yuan from various investors, including Shenzhen Capital Group, CRRC Capital, CATL, and 360 Security Technology.
NETA Auto has introduced five smart electric vehicle models to the market. The company’s deliveries have shown impressive growth, increasing from 64,230 units in 2021 to 124,189 units in 2023, with a compound annual growth rate of 39%. In 2023, NETA Auto exported 17,019 vehicles to overseas markets, accounting for 13.7% of its total annual sales and contributing 12% to its annual revenue.
Financially, NETA Auto reported revenues of 5.087 billion yuan in 2021, 13.050 billion yuan in 2022, and 13.555 billion yuan in 2023, with year-on-year growth rates of 156.5% and 3.9%, respectively. However, the company recorded losses of 4.84 billion yuan, 6.666 billion yuan, and 6.867 billion yuan over the same period. Despite this, gross margins improved from -34.4% in 2021 to -14.9% in 2023.
In terms of research and development, NETA Auto has established four centers in Shanghai, Jiaxing, Beijing, and Hong Kong, employing 2,132 R&D staff as of December 31, 2023, which represents 26.9% of its total workforce.
Hozon Automobile operates a vehicle manufacturing plant in Tongxiang, Zhejiang province, as well as multiple parts factories in China. In addition, new plants in Thailand and Indonesia have recently commenced operations, while a new facility in Malaysia began construction in January 2024.
Overall, NETA Auto’s potential listing on the Hong Kong Stock Exchange signifies a significant milestone for the company and further solidifies its position in the competitive electric vehicle market.
