[YesAuto News] On April 4, the China Securities Regulatory Commission issued an announcement showing that CATL (CATL) had passed its first share offering. From the first disclosure of the prospectus by CATL on November 10, 2017 to the update on March 12, and the completion of the meeting on April 4, the 150-day period has been greatly accelerated compared to the previous year of queuing at every turn.
In this IPO, CATL plans to publicly issue no more than 217 million A shares on the Growth Enterprise Market, accounting for no less than 10% of the total number of shares after the issuance. It plans to raise 13.12 billion yuan of funds. From this, the market value of CATL after fundraising is estimated. Approximately 130 billion yuan, becoming a veritable unicorn (a unicorn company is a company registered in China with legal personality, established for less than ten years, obtained private equity investment and has not yet been listed, and has a valuation of more than 1 billion US dollars) .
It is understood that CATL is a power battery system provider, mainly engaged in the research and development, production and sales of power battery systems and energy storage systems for new energy vehicles. According to the updated prospectus, CATL's revenue and net profit in 2017 are in a state of both growth. Among them, operating income in 2017 was 19.997 billion yuan, a year-on-year increase of more than 34%; attributable net profit was 3.972 billion yuan, a year-on-year increase of 31.4%.
Although it has not yet been listed on the stock market, thanks to the complete upstream and downstream industrial chain, a group of small partners in the A-share market of CATL have been “fired”. At present, relevant concept stocks have risen in varying degrees. There is even a stock trading software that has specifically created a “Ningde era concept stock”, more than 20 stocks are included in it, and stocks continue to release news, indicating that they have cooperation with the Ningde era.
However, unicorns are not all advantages. CATL itself clearly stated in the prospectus that there are still some risks in the company's operations. The first is the risk of industrial policy changes. Since 2009, the state has been implementing a subsidy policy for new energy vehicles and has been continuously adjusting. If the policy declines beyond expectations or major adverse changes in related industrial policies, it may have a major adverse impact; the second is market demand fluctuations Risks, the development of China’s new energy vehicles is still in its infancy. In the future, if the market demand for new energy vehicles fluctuates significantly, it will have a major impact; the third is the risk of relative concentration of customers. In 2017, the company’s top five customers accounted for the company’s sales in the current period The operating income ratio is 51.90%. If there is a problem with the main customer’s operating situation, it will inevitably have a greater impact on the operation of the Ningde era; the fourth is the financial risk, which is mainly reflected in the risk of a decline in gross profit margin.
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If you want to learn more about the past and present of the Ningde era, you can click the back link to view the article “How to make a battery leader in the Ningde era.”