Hubei’s competition for new energy track adds another important "weight" Lantu new energy vehicle A round of financing nearly 5 billion yuan
Hubei Daily full media reporter Zuo Chen, correspondent Zhang Yingying
On November 18, Lantu Automotive Technology Co., Ltd. (hereinafter referred to as "Lantu Automotive") announced the completion of the A round of financing agreement signing and delivery. This round of financing is nearly 5 billion yuan, and the market valuation after financing is nearly 30 billion yuan.
This is the largest first round of financing in China’s new energy vehicle industry to date, which will further optimize the shareholding structure of Lantu Automobile, marking a key step in the marketization of Dongfeng’s high-end new energy brand.
It is expected that more than 40% will be used for technology research and development
According to the disclosure, this round of financing of Lantu Automobile, a total of 10 investors, led by the national team of central enterprises with strategic coordination and large state-owned Financial Institutions Group, state-owned, industrial and private capital actively followed suit.
The joint lead investors are the state-owned enterprise mixed reform fund and Bank of China assets, and the follow-up investors include three state-owned capitals, ICBC Investment, Agricultural Bank Investment, and Jiaoyin Yuanjing, Wuhan Economic Development Fund, Hubei High Quality Development Fund, and Zhongxin High Investment, three local state-owned assets, Ganfeng Lithium Industry and Xinwangda two industries and private capital. Dongfeng Group followed up this financing simultaneously. After this round of financing, Dongfeng Group held 78.88%, A round investors held 12.37%, and Lantu employee shareholding platform held 8.75%.
Lantu Automobile CFO Shen Jun said that this round of financing investors have strategic synergies with Lantu Automobile, especially in the areas of mixed ownership and institutional reform, strategic business collaboration, comprehensive financial services, and three power supply chains. They will achieve resource integration and complementary advantages with Lantu Automobile, and establish a new industrial ecosystem of integration and symbiosis.
The funds will be used to support Lantu’s technology research and development, marketing investment, digital system construction, capacity building and other matters related to the operation and expansion of Lantu’s main business. It is expected that more than 40% will be used for technology research and development. Shen Jun revealed that the company will continue to carry out follow-up financing work as an opportunity. "Based on market and regulatory policies, Lantu will also consider the follow-up IPO plan."
Lu Fang, CEO of Lantu Automobile, said that the financing is based on two considerations. On the one hand, through the introduction of strategic investors to empower, industrial synergies are formed in the upstream and downstream industrial chains, especially Sandian and marketing ecological cooperation, and complementary advantages are realized with investors to further promote the rapid development of Lantu’s business. On the other hand, it is also to continue to implement the relevant requirements of the "double hundred enterprises" mixed reform, improve the corporate governance structure, revitalize the system and mechanism, and further enhance the value preservation and appreciation of state-owned capital, improve the competitiveness of the state-owned economy, and enlarge the function of state-owned capital.
"Fight" in the market wave
As a high-end new energy vehicle brand built by Dongfeng Group, Landmap carries the dual mission of Dongfeng brand upward and exploring new systems and mechanisms, and is a key project for the mixed ownership reform of state-owned central enterprises.
The purpose of the mixed reform of state-owned enterprises is to create a competitive governance system that conforms to modern corporate governance and can cultivate competitiveness and innovation.
Lu Fang said that this round of financing will give full play to the advantages of capital markets in resource allocation, deepen the reform of Lantu’s mixed ownership and system and mechanism, and help Lantu build a more scientific and perfect governance structure, more flexible and efficient operating mechanism, innovation ability and market competitiveness.
"People are the most critical resource for the future development of Lantu Automobile." Lu Fang introduced that Lantu implements flat management and project owner system internally, without departments and calling each other "teachers", coordinated operations, and efficient implementation. Last year, Lantu launched the Equity Incentive Plan for the core backbone of the enterprise, which realized employee stock ownership incentives. After this round of financing, the shareholding of Lantu’s employee stock ownership platform reached 8.75%.
The fast market-oriented response mechanism has allowed Landscape to accelerate since its establishment.
Since the launch of the brand in 2020, Lantu has launched two high-end new energy vehicle products, Lantu FREE and Lantu Dreamer. The third sedan, Lantu Chaser, is expected to debut in December this year, becoming the most complete product layout among China’s new energy vehicle brands. The cumulative layout of 1,771 patents has been applied for, and the patent growth rate is the first in the new energy industry. In September this year, Lantu FREE was officially shipped to Norway, becoming the first new energy national team brand to go overseas.
At present, Lantu Automotive’s R & D personnel account for 38% of the total number of technology companies, and the average age of the team is 32.6 years. The proportion of R & D teams ranks first among new vehicle companies.
Hubei’s competition for a new track adds "weight"
With the "catch-up" of Lantu Automobile in financing, the marketization of new energy brands under traditional car companies has accelerated.
In August last year, Geely Automobile Group’s JK Automobile signed a strategic investment agreement with five prospective investors; in March this year, GAC Aian completed the first introduction of strategic investors; Changan Automobile’s brand Avita was listed on Chongqing’s property rights trading network for the second time; Shanghai Automobile Group’s Zhiji Automobile announced the completion of the A round of equity financing agreement.
"New energy vehicles have become the main direction of the development of the global automotive industry. Whether it is traditional car companies or new car-making forces, they are increasing investment in the field of new energy." Lu Chihua, a professor at the School of Automotive Engineering of Wuhan University of Technology, said that the current round of financing of Lantu Automobile has many leading companies in the industrial chain, which will form a joint force for industrial competition.
For example, the state-owned enterprise mixed reform fund is approved by the State Council, and the State-owned Assets Supervision and Administration Commission of the State Council has entrusted China Chengtong Holding Group Co., Ltd. to initiate the establishment of a national fund, focusing on the layout of national strategic emerging, technological innovation and mixed ownership reform in key areas of the industrial chain; Ganfeng Lithium Industry and Xinwangda are both leading enterprises in the field of lithium batteries.
Lu Chihua said that this not only means that Lantu Automobile will get more "ammunition" and work with industry partners to create more in line with market demand and more competitive products, but also means that it has the ability to represent the entire Wuhan, and even Hubei, to participate in the national and even world competition in the new energy vehicle market.
Lu Fang, CEO of Lantu Automobile, said that the current international economic situation is severe, and various unfavorable factors are superimposed, making it more difficult to invest and finance in the automobile and parts industry. However, Lantu Automobile’s success in "leading the war" reflects the full recognition and confidence of investors in the primary market for the investment value of Lantu Automobile, and also shows that Lantu Automobile has super strength and unique advantages in the high-end intelligent electric vehicle track.