Beijing (ZXZC)- On June 26, Hozon New Energy Automobile Co., Ltd. (Hozon Automobile) submitted an application for listing on the Hong Kong Stock Exchange. If successful, its electric vehicle brand NETA Auto will become the fifth Chinese startup carmaker to be listed in Hong Kong, following Li Auto, NIO, XPENG, and Leapmotor.

Photo credit: NETA Auto

In April, Hozon Automobile announced it had secured at least 5 billion yuan in investment to support NETA Auto’s IPO and expand production and R&D. Earlier, on March 20, NETA Auto formed partnership with the Hong Kong government, receiving a 200-million HKD subsidy and 200-million USD in cornerstone investment.

To date, Hozon Automobile has completed 14 financing rounds, raising nearly 30 billion yuan from investors including Shenzhen Capital Group, CRRC Capital, CATL, and 360 Security Technology.

According to the prospectus, NETA Auto has launched five smart electric vehicle models. Deliveries grew from 64,230 units in 2021 to 124,189 units in 2023, with a compound annual growth rate of 39%. In 2023, NETA Auto exported 17,019 vehicles to overseas markets, accounting for 13.7% of the company’s total annual sales and contributing 12% to its annual revenue.

Financially, NETA Auto reported revenues of 5.087 billion yuan in 2021, 13.050 billion yuan in 2022, and 13.555 billion yuan in 2023, with year-on-year growth of 156.5% and 3.9%, respectively. However, the company recorded losses of 4.84 billion yuan, 6.666 billion yuan, and 6.867 billion yuan over the same period. Gross margins improved from -34.4% in 2021 to -14.9% in 2023.

In R&D, NETA Auto has established four centers in Shanghai, Jiaxing, Beijing, and Hong Kong cities, employing 2,132 R&D staff as of December 31, 2023, representing 26.9% of its total workforce.

Hozon Automobile operates a vehicle manufacturing plant in Tongxiang, Zhejiang province, and multiple parts factories in China. Additional plants in Thailand and Indonesia began operations in March and May 2024, respectively, and a new facility in Malaysia commenced construction in January 2024.