Since the launch of the science and technology innovation board, more and more enterprises want to take the ride of the science and technology innovation board, including some well-known enterprises. Geely is one of them. On September 1, Geely Automobile Holding Co., Ltd. (hereinafter referred to as “Geely Automobile”) which has been listed in Hong Kong Stock Exchange (hereinafter referred to as “Geely Automobile”) disclosed the prospectus (declaration draft) of the initial public offering of shares on the science and technology innovation board (hereinafter referred to as the “Shanghai Stock Exchange”), officially launched a shock to the “first vehicle stock” of domestic science and technology innovation board. On September 28, Geely Automobile A-share issuance plan was approved by the Municipal Committee meeting on the science and technology innovation board. Ren Wanfu, an automobile analyst, told China Science and technology news network that there are several main reasons for Geely’s A-share listing: first, China Securities Regulatory Commission (CSRC) has launched a series of attractive reform measures to attract overseas listed enterprises to return; second, changes in the international situation have led to the risk of damage to the enterprises listed abroad. “The risk of global economic crisis caused by the new epidemic situation has increased. On the contrary, domestic policies and economy have remained relatively stable.” Ren Wanfu said. < p > < p > according to the prospectus, the total operating revenue of Geely Automobile in 2017-2019 and the first half of 2020 were 93.553 billion yuan, 107.334 billion yuan, 98.139 billion yuan and 37.121 billion yuan, respectively, with a year-on-year decrease of 8.6% in 2019. In terms of net profit, from 2018 to 2019, Geely’s net profit decreased from 12.585 billion yuan to 8.285 billion yuan, a year-on-year decrease of 34.17%. The decline of net profit will continue in the first half of 2020. In the first half of 2020, Geely’s operating revenue reached 36.82 billion yuan, a year-on-year decrease of 22.65%, net profit of 2.32 billion yuan, a year-on-year decrease of 42.72%, and net profit of 1.68 billion yuan after deduction of non attributable parent, a year-on-year decrease of 52.07%. < / P > < p > at the same time, the capital flow of Geely Automobile is also facing a test. According to the data, as of June 30, 2020, the long-term loan amount of Geely Automobile was 4.23 billion yuan, up 107.4% compared with 2.04 billion yuan in mid-2019. In addition, in the first half of 2020, the net cash flow generated by Geely’s operating activities was – 3.24 billion yuan, which changed from positive to negative for the first time in recent years. Geely Automobile mentioned in the prospectus that the company raised 20 billion yuan, one of which was used to supplement working capital. In a research report, Guosheng Securities pointed out that the main reason for the decline of Geely’s revenue in the first half of the year was that the production and sales of the industry were depressed due to the epidemic situation. Tianfeng securities, however, believes that the reason for the decline of Geely’s revenue in the first half of 2020 is mainly due to the downturn in the industry and the large discount offered by the company to dealers. In the first half of 2020, the average ex factory price of Geely Automobile decreased by 6% year on year. < / P > < p > it is worth noting that in 2017, 2018, 2019 and the first half of 2020, Geely’s capacity utilization rate was 84.96%, 78.03% and 59.45% and 45.18% respectively, showing a downward trend. However, when the capacity utilization rate continued to decline, Geely still chose to expand against the trend. < p > < p > according to the reports, in 2018, Geely Automobile purchased the workshop in Hangzhou dajiangdong with 931 million yuan, guanshanhu District in Guiyang with 1.074 billion yuan, and the workshop in Hangzhou Bay New Area in Ningbo by 1.169 billion yuan, respectively, with a cost of 3.174 billion yuan, which added 690000 units of production capacity for the company. However, since 2018, the domestic passenger car industry sales continued to decline, the company’s production capacity increased, and the market sales declined, resulting in overcapacity. < / P > < p > according to the data, after the first decline in 2018, the sales volume of the automobile industry will fall again in 2019, with the production and sales of passenger cars reaching 21.36 million and 21.44 million, respectively, down 9.2% and 9.6% year-on-year; however, in 2020, under the sudden epidemic situation, the decline of passenger car production and sales in the first half of the year is also doomed From January to June, the production and sales of passenger cars were 7.754 million and 7.873 million, respectively, down 22.5% and 22.5% year on year. However, it is worth affirming that in the first half of 2017, 2018, 2019 and the first half of 2020, the total sales market share of Geely’s three major brands was 5.04%, 6.34%, 6.35% and 6.76%, respectively. The market share continued to increase, and for three and a half years in a row, Geely Automobile ranked first in the sales volume of domestic independent automobile enterprises. < / P > < p > in this era when new energy vehicles have gradually become dominant, Geely will follow the trend, and its product line will fully implement electrification and digitization, and become the leader of intelligent electric vehicles. In September 2020, Geely announced that it had realized the L4 / L5 automatic driving function. The company expected that the technologies such as endurance / handling / safety / automatic driving / online OTA would surpass its competitors in an all-round way. Next, Geely’s second-generation hybrid electric vehicle (HEV) will break the Japanese HEV technology The monopoly of technology is expected to be applied in Geely brand next year, which will compete positively with the Japanese system. Third, Geely Automobile will realize its own R & D and production of electric motors, electronic control and intelligent cockpit by the end of this year, and the core technology of three electric vehicles will be enhanced. Fourth, next year, Geely will launch two pure electric vehicles and three traditional fuel vehicles, the latter using dual motors and the world’s leading hybrid technology. < p > < p > 10000 vehicles, a year-on-year decrease of 4%. From January to July in 2020, the total sales volume of new energy vehicles in Europe will reach 500000, which is 14000 more than that in China, which has aroused widespread concern of the society. In April this year, the Ministry of finance, the Ministry of industry and information technology, the Ministry of science and technology, and the national development and Reform Commission issued the notice on improving the financial subsidy policy for the promotion and application of new energy vehicles, which clearly stated that the implementation period of the financial subsidy policy for the promotion and application of new energy vehicles would be extended to the end of 2022, among which, the subsidy standard in 2020 would not decline, and the subsidy standard in 2021-2022 would be in 10% and 20% of the previous year. In principle, the maximum subsidy scale is about 2 million vehicles per year. It can be seen that subsidies are not a long-term development plan, and the development of new energy vehicles will eventually return to the source of technological upgrading. On October 9, the executive meeting of the State Council adopted the development plan of new energy vehicle industry (2021-2035) (hereinafter referred to as the plan). It is not difficult to see from the contents of the plan that the contents of the full text are mainly “strengthened” in four aspects. The “subsidies” of new energy vehicles are not mentioned in the full text. Instead, policy support for the public service field is increased, including services for charging piles and information sharing of automobile enterprises. < / P > < p > it is worth noting that the full text of the plan does not mention subsidies, but also explains the development of new energy vehicles. It can be seen that the relevant departments still hope that they will return to the market and fully respect the market rules. Although the subsidy for new energy vehicles is postponed, it will be sooner or later to withdraw completely. Cui Dongshu, Secretary General of the national passenger car market information association, told China Science and technology news network that the current situation of the domestic new energy vehicle market should be shifted from a high growth in the past to the adjustment period from the second half of last year to the first half of this year, and a new round of high growth process began in July. Therefore, from the current situation, the whole new energy vehicle market is dominated by passenger cars In northern Europe, with the rapid expansion of passenger car production scale in the future, the whole car will be electric, and the speed will be accelerated. Ren Wanfu, an automobile analyst, believes that the sales of new energy vehicles have resumed the growth trend, and the development prospect will be good driven by the policies and demand in a period of time in the future. From the policy point of view, the new energy vehicle purchase subsidy and exemption from purchase tax policies were extended for two years, boosting the recovery of the new energy vehicle market; the purchase restriction provinces and cities responded to the national call to increase the quota, but almost all of the quotas were inclined to new energy vehicles; the policy continued to increase the charging pile, power station and other infrastructure construction, which promoted the sales growth of new energy vehicles. “From the market point of view, driven by leading enterprises such as Tesla and Weilai, traditional automobile enterprises have increased the investment of new energy products, and new energy vehicle products are extremely rich.” Ren Wanfu said. Zhang Yongwei, vice chairman of the 100 people’s Congress of electric vehicles, also said in an interview with the media that the development of new energy vehicles ultimately depends on the market, and whether the products can better meet the market demand. Ren Wanfu also said that the decline of subsidies for new energy vehicles has a relatively small impact on the market. On the one hand, the subsidy policy has achieved the purpose of guiding and promoting the development of the new energy vehicle market, and the development of the new energy vehicle market has entered the right track; on the other hand, the subsidy policy has shifted from the supply side to the demand side, giving the initiative to the market. Today, Geely has entered the countdown phase of Huia, and we can only wait and see whether the road after its listing can really be “Geely” like his name. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. The State Administration of press and publication of the State Council is the key website of the State Administration of press and publication. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.