Chinese electric vehicle (EV) maker Hozon New Energy Automobile said it has secured 7 billion yuan ($960.2 million) in cross-over financing, a few months after the firm denied media reports about its plan to move towards a public listing in Hong Kong.
Shanghai-headquartered Hozon announced the cross-over financing in a post on its WeChat official account on Tuesday evening, without providing any further details including the identities of its investors or the intended use of the proceeds.
This cross-over financing – which refers to public market investors and asset managers “crossing over” into the private markets to invest in late-stage companies with a certain level of business maturity and are often ready for an initial public offering (IPO) – comes a few months after Hozon was reportedly considering an IPO in Hong Kong.
A Bloomberg report in June, citing people familiar with the matter, said that Hozon was mulling a $1-billion Hong Kong listing. The people said that the firm had added ABC International Holdings (ABCI) and China Merchants Bank International (CMBI) to the banks it was working with for the IPO. But Hozon swiftly denied the reported listing plan in a company statement.
Hozon raises at least $3.78b in total venture financing since inception in 2014
| Announced time | Funding stage | Investment size in original currency (Chinese yuan) | Investment size (Million USD) | Lead investor(s) | Other investor(s) |
|---|---|---|---|---|---|
| Between Oct 2014 and Apr 2019 | Series A and earlier | About 4 billion yuan | $560 | ||
| Apr 2019 | B | 3 billion yuan | $420 | An unspecified government industry fund | |
| Dec 2020 | C | Over 3 billion yuan | $420 | HD Capital | |
| Oct 2021 | D1 | 4 billion yuan | $560 | 360 Security Technology | CCB International, CITIC Securities Investment, Shenwan Hongyuan Securities (HK)’s new energy industry fund, GF Venture Capital |
| Between Oct 2021 and Jul 2022 | D2 | Almost 3 billion yuan | $420 | String Capital Management, Contemporary Amperex Technology Co Ltd (CATL) | |
| Jul 2022 | D3 | Over 3 billion yuan | $420 | Shenzhen Capital Group, Qianhai FOF, Connected Ark Fund Management, Hongtai Aplus, Dayone Capital, Insight Capital, Dianshi Capital (典实资本), and more | |
| Aug 2023 | Cross-over financing | 7 billion yuan | $980 | ||
| *All transactions made in Chinese yuan are converted to US dollars under the exchange rate of 1 Chinese yuan = $0.14. |
The new financing could provide Hozon with more dry powder as the firm invests heavily in its expansion across overseas markets, including Southeast Asia, where it has been selling its Neta-branded EVs in countries like Thailand, Myanmar, and Nepal.
In its latest market foray in Southeast Asia, Hozon announced in early August its plans to start selling Neta V crossover vehicles in Indonesia from the fourth quarter of this year. It also aims to begin localised assembly and production in the country from Q2 2024, with a targeted production capacity of 30,000 EV units annually.
Hozon, which exported 6,970 vehicles in H1 this year, has been delivering its Neta EVs to overseas markets including Southeast Asia, South Asia, and the Middle East since 2022.
It currently runs two factories in China with a total capacity of producing 150,000 EV units per year. It is building its first overseas plant in Thailand and aims to start production there in January 2024.