Running Commentary on the SP Movements., page-7543

We do but ....would rather have all my shares in exchange to be part of CATL and the IPO.
Wishful thinking maybe ,but a possibility large holders may be offered A PART in a friendly take over.
This offers holders of AVZ an opportunity to still be involved long term in Manono through the successful bidders. ?
with compound growth over 300% will be highly sought after by Chinese fund managers.
Eyes on AVZ indeed and the outcome.
CATL with thanks to ML.

Business articles ▏ sprint IPO Who will benefit from the era of Ningde lithium battery coming?

2017-11-21 China Times SMM cobalt lithium new energy
Ningde era a prospectus may be announced to the market, lithium battery industry will enter the "Ningde era." This seems to have become the hottest topic in the current market, from the Ningde era in the lithium battery market share and its current valuation of the market and its market value forecast for the future.

　　On November 10, the website of the CSRC released the initial public offering prospectus for the GEM of Ningde Times. The instructions show that Ningde era to raise funds 13.120 billion yuan to expand production capacity and develop the next generation of batteries. Ningde Times this time to the public public offering of 217243733 yuan of ordinary shares, accounting for the proportion of the total share capital after the release of not less than 10%. It is not hard to know that the market value after the Ningde era raised about 130 billion yuan.

This valuation is much higher than the current market value of most vehicle companies, Ningde era so much hot market.

　　What kind of Ningde era?

　　From the development path, Ningde era was established in December 2011, although only about 6 years, but its rapid development. In China, Ningde Times maintains long-term strategic cooperation with leading automobile companies in such industries as Yutong, SAIC, BAIC Group, Geely Group, Fuqi Group, Hunan Zhongwei, Dongfeng Group and Changan Group. At the international stage, the era of Ningde has entered BMW, Volkswagen and other world-class automotive supply system, but also the few for the international automobile brands to provide power battery solutions provider.

　　Financial data may be more intuitively reflect the speed of development of Ningde. Prospectus shows that in the recent three years, the company's operating income, net profit and asset size rapid growth. In 2014, 2015 and 2016, the operating revenue of the Company was 8.67 billion yuan, 5.703 billion yuan and 14.879 billion yuan, respectively, with an average annual compound growth rate of 314.31%; net profit was 56 million yuan, 951 million yuan and 3.089 billion yuan respectively , With an average annual compound growth rate of 642.70%.

　　In 2015 and 2016, the Company sold 2.19GWh and 6.80GWh of power battery systems respectively, ranking the top three among the global power battery enterprises for two consecutive years with a good momentum of development. In the first half of 2017, the national market ranked No.1.

　　In fact, the main business income of Ningde era comes from the sales of power battery system, energy storage system and lithium battery material. Among them, the power battery system sales occupy the absolute position of the main, derived from the Guangdong Bangpu lithium battery materials business followed by energy storage system has not made force.

　　Ningde era to market is toward the battery industry forward. Prospectus disclosed that the proceeds raised mainly for two projects: First, Ningde era Huxi lithium-ion battery production base to be 9.86 billion yuan investment project, construction land area of 385 acres, the main products include battery cells, modules and batteries package. The project will build 24 production lines, a total annual capacity of 24GWh power battery products. Second, power and storage battery research and development projects, plans to invest 4200000000 yuan. The main research and development projects are new energy passenger car power batteries, new energy commercial vehicle power batteries, energy storage batteries, the next generation of batteries.

　　Whether the policy level is good or the market pass the information, the market did give the lithium battery industry, a higher valuation and expectations. As a result, the market value of up to RMB130 billion in Ningde Times was much higher than the market capitalization of most auto companies at present, second only to SAIC (market value of RMB 347.23 billion), GAC (market capitalization of RMB 167.46 billion), Geely Market value 140.38 billion yuan), and BYD (market value 130.54 billion yuan) quite.

　　From the previous investment point of view, in March 2017, a subsidiary of Hon Hai Group to invest 1 billion yuan to obtain a 1.19% stake in Ningde era, a rough calculation based on this data, when the valuation of Ningde era amounted to 840 billion yuan. After a lapse of eight months, the valuation of Ningde era is 1.5 times before.

　　Liu Biao, a researcher in capital finance at China University of Political Science and Law, believes that the profit from 2014 to 2016 will see a big increase in profit. If the average profit in these three years is about 1.5 billion, the valuation is 130 billion with a price-earnings ratio of nearly 90. The net assets of 23 billion count, book value greater than 5, the valuation is higher than the industry average.

　　Who will profit?

　　The prospectus shows that the actual controllers of Ningde Times were Zeng Yuqun and Li Ping. Zeng Yukun holds 100% equity of Ruiting, the controlling shareholder of Ningde Times, and indirectly holds 29.23% shares of Ningde Times. Li Ping directly holds 5.73% shares of Ningde Times, both of whom are acting in concert and hold the total share capital before the issue 34.95%. Huang Shilin holds 13.34% shares of Ningde Times, Ningbo Union holds 8.50% shares before the shares; the other 45 shareholders hold 43.2%.

　　The disclosure of the prospectus shows that the remaining 45 shareholders hold less than 5% of the shares, including many well-known domestic investment institutions such as Tianjin Junlian 0.66% and Lenovo Beijing 2.3%. Shenzhen Venture Capital Holding 0.22%, Septwolves holding 0.18%, Ping An Real Estate Investment Holding holding 0.59%, and Changan Automobile holding 1.18% as one of the limited partners.

　　It is noteworthy that, in the Ningde era of more than 40 shareholders, 14 shareholders suddenly into the stock market the year before the listing, the share price is 130.44 yuan per share. Among them, in December 2016 a total of nine shareholders subscribe for shares, is expected to share the listing feast.

　　In December 2016, China Merchants Power, Boyu Phase II, Shanghai Yunfeng, Advanced Manufacturing, SDIC Innovation and Tianjin Junlian were all involved in the Ningde Era. Among them, China Merchants Power contributed the most funds to 2.91 billion yuan. The round of capital increase totaled 8.0 billion yuan . In March 2017, Ningde Times also introduced three institutions including Changzhou Xinde and natural persons Wan Jingzhao, raising over 4 billion yuan of funds. In June 2017, another round of replenishment was launched in Ningde Times. Dema Hairun invested 1 billion shares. The first two replenishment of shares were 130.43 yuan price, June 5, Ningde era capitalization of capital reserve for every 10 shares by 20 shares. The DE Mao Hairun contribution is converted to equity, the investment price of 43.48 yuan equivalent to 130.43 yuan after the restoration of rights.

　　If the era of Ningde access to market recognition, no doubt the above shareholders will get a lot of rewards. However, Liu Biao analysis to reporters, this Ningde Times IPO has a characteristic that is the two actual controllers of the total shareholding ratio of less than 35%, even after the listing will be diluted below 33%. A stake of less than 33% will lose one-vote veto for major event decisions. From the governance structure of listed companies is conducive to public policy-making rather than the dominant shareholder of a dominance, other shareholders can not compete with this shareholding holdings of large shareholders under the impulse will be lower, otherwise it will gradually Loss of ownership of listed companies.

　　Pacific Securities Research reported that Ningde shares prospectus makes the super IPO opened the industry leader. According to the company IPO declaration, the company currently valued more than 130 billion yuan and became the first company to break the market cap of 100 billion yuan since the implementation of the new energy vehicles strategy in China. The Ningde era is recognized as the industry leader, but because it is an unlisted company, the community can only indirectly understand its strengths from its suppliers and customers. This time, IPO declaration makes the market to fully understand the lithium giant.

　　Tianfeng Securities believes that compared with the previous A share financing projects, more than 10 billion in size mainly for financial institutions or state-owned enterprises. The Ningde era 13.120 billion yuan financing amount is expected to become the largest non-state-owned enterprises in the case of IPO financing.