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[YesAuto News] On April 27, SST Qianfeng issued an announcement stating that after the review of the China Securities Regulatory Commission's listed company mergers and acquisitions review committee, the company's major asset replacement and issuance of shares to purchase assets and raise supporting funds and related transactions were approved. This indicates that this major event has basically completed the review of the regulatory authorities and is about to enter the final stage of asset delivery. BAIC New Energy will become the second listed company of BAIC Group and the first listed company to list A shares.

Previously, Bohai Piston, a subsidiary of BAIC Group, announced that SST Qianfeng intends to acquire 100% of BAIC New Energy through asset replacement and issuance of shares to purchase assets. BAIC New Energy’s estimated value is about 28.85 billion yuan, and the appreciation rate is about 75.24%.

BAIC New Energy's listing plan can be traced back to the time when BAIC Motor was listed on the Hong Kong Stock Exchange in 2014, when the new energy vehicle business was divested from BAIC Motor. Since then, Xu Heyi, chairman of BAIC Group, has repeatedly stated that BAIC New Energy will be listed on its own. However, if you normally apply for A-share listing, the red line of continuous profitability for three years is a prerequisite that must be crossed. This means that BAIC New Energy, which started to make profits in 2016, will not be able to land in A shares until 2019 at the earliest. The use of backdoor methods can obviously speed up the process.

As a result, with BAIC Group taking over the SST forward in December 2017, BAIC New Energy officially opened its way to a backdoor listing. On the evening of January 22, 2018, SST Qianfeng announced that it planned to acquire 100% of BAIC BJEV through asset replacement and issuance of shares; on January 30, SST Qianfeng announced that the company plans to use major asset replacement and issuance of shares to purchase By means of assets, the overall listing of BAIC New Energy and the issuance of non-public shares to specific investors will raise no more than 2 billion yuan to invest in BAIC New Energy; on February 12, the SST Qianfeng Shareholders' Meeting reviewed and approved the share reform plan. After the completion of the share reform, Qianfeng shares purchased assets through asset replacement and issuance of shares to purchase 100% equity of BAIC New Energy at a price of 28.85 billion yuan.

Official information shows that BAIC New Energy has launched more than 10 pure electric passenger vehicles in the six series of EH, EU, EX, EV, EC, and LITE, making it the new energy vehicle company with the longest product line in China's new energy market. In 2017, BAIC New Energy sold more than 100,000 pure electric vehicles in total, a year-on-year increase of 98%. In 2018, BAIC New Energy’s target sales volume is 150,000. In the first quarter of 2018, BAIC New Energy has sold more than 21,000 pure electric vehicles.