From Chongqing.

Author I Liu Bo

Report I Investment World-Tiantian IPO

Cialis started IPO in Hong Kong.

Investment World-Tiantian IPO learned that Cialis recently announced that it plans to list on the Hong Kong main board by issuing overseas listed foreign shares. There is also a financing that follows - the subsidiary Cialis Automobile plans to introduce a number of strategic investors, with a total increase of no more than 5 billion yuan.

Cialis, a name that is tightly bound to Huawei. The helm behind him is Zhang Xinghai, a post-60s generation in Chongqing. He has built motorcycles and produced vans. Finally, through cooperation with Huawei, he has made the new energy vehicle territory bigger and stronger and created a market value of 200 billion in A-shares, which is the most vivid microcosm of China's new car-making feast.

Behind the car manufacturing is awe. The recent Xiaomi highway intelligent driving accident has caused the outside world to re-examine intelligent driving and re-exploring the real meaning behind car manufacturing.

1 Rising in Chongqing to create a 200 billion IPO

Behind Selis is a Chongqing native who rarely appears in Chongqing - Zhang Xinghai.

Zhang Xinghai was born in 1963 and his automotive career started with the most inconspicuous parts. In 1986, Zhang Xinghai invested and established the Baxian Phoenix Electrical Appliances Spring Factory to produce seat springs for Changan Microcars.

After making auto parts, Zhang Xinghai began to build motorcycles and established Xinyan Motorcycle Co., Ltd. and Xinyan Motorcycle Sales Co., Ltd. in 2002. Subsequently, Yu'an Group was established, the predecessor of Xiaokang Co., Ltd.

But Zhang Xinghai was not satisfied with motorcycles. In 2003, Dongfeng Motor, Dongfeng Industrial and Yu'an Group jointly established "Dongfeng Yu'an", mainly producing Dongfeng Xiaokang brand microcars, and Zhang Xinghai officially entered the automobile industry.

In 2006, Chongqing Xiaokang Automobile Group Co., Ltd. was established and the company was renamed Chongqing Xiaokang Industrial Group Co., Ltd. In 2011, Zhang Xinghai's car manufacturing ushered in a milestone. Dongfeng Xiaokang's 1 million vehicles were removed from the line, ranking among the "Top Three Micro Cars in China".

Xiaokang Co., Ltd. also successfully listed on the A-share market in 2016, successfully becoming the third A-share listed automobile complete vehicle company in Chongqing. However, since then, the share price of Xiaokang Co., Ltd. often hovered around 10 yuan per share, with a maximum of no more than 20 yuan per share, and the company's performance also fluctuated.

The turning point occurred in 2021 - Xiaokang Co., Ltd. announced a cooperation relationship with Huawei, and the two sides signed a memorandum of cooperation in the field of new energy vehicles. During the subsequent Shanghai Auto Show, Huawei and Cialis jointly released the first mass-produced model - Cialis Huawei Smart Select SF5, and announced that the car will be jointly sold through both channels.

Since then, Xiaokang Co., Ltd. has undergone earth-shaking changes. At the end of December of the same year, AITO M5, the second high-end car brand jointly developed by Cialis and Huawei, was released, which is regarded as the "first Hongmeng car". Then both sides struck while the iron was hot and launched a new car, and the M7 in July 2022 was released. The new M7 and M9 released in the second half of 2023 have exceeded 120,000 and 70,000 units in three months of listing, becoming the sales champions of their respective market segments.

In August 2022, the abbreviation of Xiaokang Co., Ltd. Securities officially became "Silis". At the same time, the company has also completed the registration procedures for industrial and commercial changes, and its name has been changed from "Chongqing Xiaokang Industrial Group Co., Ltd." to "Selis Group Co., Ltd.".

While officially announcing its IPO in Hong Kong, Cialis also foresees a major financing - its holding subsidiary Cialis Automobile plans to increase its capital and expand its shares and introduce strategic investors, with a total increase of no more than 5 billion yuan. According to the announcement, Cialis has completed the signing of relevant agreements with ICBC Investment, Bank of Communications Investment and Agricultural Bank of China Investment. Due to the different internal approval decision-making processes and progress of some other investors, the investment entity will eventually negotiate and determine the capital increase amount reviewed and approved by the board of directors after its internal approval decision is approved.

To date, the market value of Cialis A-shares has exceeded 200 billion yuan. Once it successfully enters Hong Kong stocks, it will become the largest car-making IPO this year.

2. The world is popular and sold 400,000 new energy vehicles in a year.

Cialis just handed over the strongest financial report in history.

According to the 2024 annual report, Cialis' annual revenue reached 145.176 billion yuan, a year-on-year increase of 305%, and its net profit also turned losses to 5.946 billion yuan, becoming the fourth new energy vehicle company in the world to achieve profitability after Tesla, BYD and Ideal.

Regarding performance growth, Cialis said that the main reason is that the sales of new energy vehicles doubled, the profitability of products has increased, and the gross profit margin of new energy vehicles has increased to 26.21%. Data shows that in 2024, Salis' new energy vehicle sales were 426,900 units, an increase of 182.84% year-on-year. Specifically, the Wenjie series supports half of the whole vehicle business of Cialis. Among them, the Wenjie M9 will deliver more than 150,000 new cars in 2024, and the Wenjie new M7 will deliver more than 200,000 new cars in 2024.

Cialis is still expanding his investment landscape. In January last year, Huawei registered and established Shenzhen Yinwang Intelligent Technology Co., Ltd. (hereinafter referred to as "Yinwang"), and is located in the office building of Huawei headquarters in Shenzhen, aiming to achieve independent market-oriented operation of Huawei Car BU. At the end of July of the same year, Cialis issued an announcement stating that the company plans to invest and attract expectations. Less than a month later, Shuangshi completed an equity investment of 11.5 billion yuan, and Cialis became the second automaker to attract investment after Avita. Based on the investment amount and shareholding ratio, Yanwang's latest valuation has reached 115 billion yuan.

Speaking of this investment, Zhang Xinghai, chairman of Cialis Group, said at the time: "This investment investment in the company marks a comprehensive cooperation between Cialis and Huawei to 'business + equity', and opens a new starting point for sustainable development between the two parties from 1 to N."

In addition, Cialis also issued an announcement stating that it had acquired 100% of the equity of Chongqing Liangjiang New District Longsheng New Energy Technology Co., Ltd. for a price of 8.164 billion yuan, and the transfer procedures have been completed. According to data, Longsheng New Energy was established in September 2022. It is the main body of the infrastructure supporting project of Longxing New City Intelligent Connected New Energy Vehicle Industrial Park in Liangjiang New District. It is a project company specially established to serve the production and manufacturing of new energy vehicles.

Before this transaction, Cialis leased a super factory from Longsheng New Energy, mainly used to produce the M9 series models. After the transaction is completed, Longsheng New Energy will become a wholly-owned subsidiary of Cialis, and Cialis will obtain ownership of the super factory.

Although Cialis has not disclosed its 2025 business goals, Zhang Xinghai proposed in his New Year's speech at early January this year that "within three years, Cialis' new energy vehicles will achieve the goal of one million", which means that sales must double from the 426,900 vehicles in 2024.

However, with the increasingly fierce competition among car companies, the real challenge for Selis is still to come.

3. Respect life behind the new car-making competition

At present, China's car manufacturing industry is in full swing.

On the one hand, a line of 10 billion yuan in financing was born. At the end of last year, BAIC Blue Valley issued an announcement that its subsidiary Beijing New Energy Vehicle Co., Ltd. completed capital increase and share expansion, and introduced 11 external strategic investors and Beijing Automobile in one fell swoop, with a total capital increase of 10.15 billion yuan.

Almost at the same time, Zhiji Auto announced that it had successfully completed the B1 round of equity financing, with state-owned investment institutions and market-oriented investment institutions continuing to support. Previously, Zhiji Automobile had successfully obtained a B round of equity financing of over 8 billion yuan in March last year, and thus the overall B round of financing raised a total of 9.4 billion yuan.

Coincidentally, Avita Technology also announced that it had successfully completed its Series C financing, raising more than 11 billion yuan. This round of financing is jointly invested by Changan Automobile, Yufu Fund, Southern Assets Fund, Guotou Fund, Bank of Communications Investment and other strategic and market-oriented investors, with the latest valuation exceeding 30 billion yuan.

On the other hand, there is a smart arms race. BYD Chairman and President Wang Chuanfu once made it clear that 2025 will become the "first year of intelligent driving for all", and those models that do not have the ability to drive intelligently will gradually become minorities in the market. BYD was the first to launch the "Eye of God" in February this year, and the first 21 models to be launched cover the price range of 70,000 to 200,000 yuan.

Subsequently, Geely released a unified smart driving solution "Thousand Miles of Miles", which will cover all Geely's models at different prices; what's more, Chery, Zekr and GAC held smart driving press conferences on the same night.

For a time, "intelligent driving equal rights" became the loudest slogan shouted by major automakers. But little do you know that while intelligent driving is surging, there are also hidden safety hazards. With the full rollout of the smart driving system, the risks brought by the reliability of the smart driving system and user usage habits have been greatly improved.

In the promotion of smart driving technology, many car companies often only highlight the advanced technology, but ignore the technical limitations and consumers' cognitive biases. What is even more worrying is that some car companies deliberately blur the technological boundaries in order to make marketing gimmicks.

Consumers are even more trapped in a "trust trap". In various popular propaganda, they blindly follow and worship smart driving, and lose the need to always keep the "steering wheel" and even pay the price of their lives.

Recently, a fire accident occurred at the Xiaomi SU7 collision and fire at Deshang Expressway in Anhui, which was a hot topic. Before the final investigation results of the accident are released, we will not make subjective speculation or make a conclusion, but this incident is enough to sound the alarm for all car companies and consumers. The so-called "people's smart driving" should cool down, otherwise the ultimate goal will be to have a backlash of traffic.

As Li Xiang suggested, the autonomous driving level should be named: L2 = assisted driving; L3 = automatic assisted driving; L4 = automatic driving; L5 = unmanned driving. "Don't have any extra Chinese characters to avoid exaggerated publicity and misunderstandings caused by users' use. Restraint in promotion and investment in technology will be beneficial to users, industries and enterprises in the long run."

The emergence of any great technology is to better serve mankind, not to replace mankind. This is even more so when building cars. This is not simply pieced together parts, but a century-old track that cannot tolerate the least carelessness. Nowadays, what is more urgent than redefining driving is to redefine the awe of every ordinary life.

"Special statement: The content of the above works (including videos, pictures or audio) is uploaded and published by users of the "Dafenghao" self-media platform under Phoenix.com. This platform only provides information storage space services.

Notice: The content above (including the videos, pictures and audios if any) is uploaded and posted by the user of Dafeng Hao, which is a social media platform and merely provide information storage space services."

[Editor in charge: Feng Haoqin PT132]