The largest IPO under review on the Science and Technology Innovation Board was terminated, and it continued to suffer large losses for three and a half years, and it was originally planned to raise 15 billion yuan.
On the evening of December 22, there was news of the termination of SVOLT Energy, the largest IPO under review on the Science and Technology Innovation Board. According to the disclosure of the Shanghai Stock Exchange, due to the withdrawal of the issuance and listing application of SVOLT Energy and its sponsor CITIC **, the Shanghai Stock Exchange terminated its issuance and listing review in accordance with relevant regulations. SVOLT's listing application was accepted on November 18, 2022, the first round of inquiries was received on December 14, 2022, and the company replied to inquiries on March 23, 2023. 
SVOLT is mainly engaged in the R&D, production and sales of power batteries and energy storage battery systems for new energy vehicles. During the reporting period (2019 to 2021, and the first half of 2022), the company's performance continued to suffer large losses, and the net profit attributable to the parent company was -32.6 billion yuan, -700 million yuan, -11$5.4 billion and -89.7 billion yuan, but this time it threw out a fundraising amount of up to 15 billion yuan. After Syngenta terminated its IPO in May this year and Hua Hong Semiconductor successfully listed in August this year, SVOLT Energy's financing amount was the largest among the projects under review on the Science and Technology Innovation Board. In fact, Honeycomb Energy was only spun off from Great Wall Motors in 2018, and after the spin-off, it became a brother company of Great Wall Motors, and the actual controller was Wei Jianjun, the richest man in Hebei. In 2019 and 2020, the company's revenue was nearly 100%** of Great Wall Motors, and in 2021, the proportion was still 86%. In the first round of inquiry, the Shanghai Stock Exchange hit the nail on the head and asked: after deducting the related party sales to Great Wall Motors, does the issuer still meet the listing conditions?The total loss in three and a half years was 3 billion yuanThe amount of funds to be raised is as high as 15 billion yuanIn the prospectus, SVOLT Energy Technology Co., Ltd. (hereinafter referred to as "SVOLT Energy") stated that the company is a professional lithium-ion battery system provider, focusing on the research and development, production and sales of new energy vehicle power batteries and energy storage battery systems. The company's main products include battery cells, modules, battery packs and energy storage battery systems, "and can provide them with overall solutions for power batteries and energy storage products according to customer needs". 
According to the data of the China Automotive Power Battery Industry Innovation Alliance, in the first three quarters of 2023, the installed volume of SVOLT Energy was 441GWh, accounting for 173%, ranking only eighth in the domestic market, down one place from the ranking in 2022. At present, the head pattern of domestic power battery enterprises in terms of loading volume has been relatively stable, and the market share of CATL, BYD and AVIC Innovation ranks among the top three, especially "Ningwang" and "Diwang", which have taken a significant lead. In the first three quarters of this year, the loading volume of CATL, BYD, and AVIC Innovation accounted for respectively. 94% and 892%。
In terms of finance, SVOLT has been in a state of large losses after the spin-off. In each period of the reporting period (2019 to 2021, and the first half of 2022), the company's operating income was 92.9 billion yuan, 173.6 billion yuan, 44$7.4 billion and $3.73.8 billion yuan;The net profit attributable to the parent company was -32.6 billion yuan, -700 million yuan, -11$5.4 billion and -89.7 billion yuan. The company's operating income showed a rapid growth trend, but the net loss continued to expand. 
In this IPO, SVOLT Energy has given a fundraising amount of up to 15 billion yuan, which will be used for the construction of lithium battery projects in the three places, the construction of Wuxi R&D center, and the development of lithium batteries such as ternary high-density batteries and cobalt-free batteries, and another 2 billion yuan will be used to supplement working capital. 
Due to the termination of the IPO of Syngenta, which plans to raise 65 billion yuan, Hua Hong Semiconductor, which plans to raise 18 billion yuan (actual fundraising of 20.9 billion yuan), was successfully listed in August this year, and SVOLT Energy's proposed fundraising amount of 15 billion yuan has become the largest IPO under review on the Science and Technology Innovation Board. With the termination of the IPO of SVOLT, the largest IPO under review on the Science and Technology Innovation Board has become Megvii Technology, which is currently in a state of suspension due to financial updates. 
It was spun off from Great Wall Motor in 2018Associated sales were once as high as 99%.According to ** report, for the voluntary withdrawal of the IPO application, SVOLT said that the company comprehensively considered various factors, put the best interests of the company and the company's shareholders first, decided to withdraw the A-share application, and considered launching other financing options. According to the application materials, SVOLT Energy, formerly known as SVOLT Co., Ltd., was established by Great Wall Motor on February 12, 2018. In October 2018, Great Wall Motor transferred 100% of the equity of its wholly-owned subsidiary, Honeycomb Energy Technology, to Baoding Ruimao, which is a wholly-owned subsidiary of Great Wall Holdings, through an agreement transfer. At that time, all the assets of Hive Limited came from Great Wall Motors. As of the signing date of the prospectus, Baoding Ruimao directly held 394% of the shares, owning 76 of the company47% of the voting rights and is the controlling shareholder of the company. Wei Jianjun controlled a total of 40 companies through Baoding Ruimao and Great Wall Holdings26% equity, a total of 76 control of the company81% of the voting rights, is the actual controller of the company. 
Although the spin-off has been completed, the independence of SVOLT is not strong, especially in terms of sales, which is basically a shadow company of Great Wall Motors. During the reporting period, the company's sales to related parties Great Wall Motors accounted for a very high proportion of operating income. In each period of the reporting period, the amount of goods and services provided by the company to related parties was 92.4 billion yuan, 166.9 billion yuan, 3.7 billion yuan and 2.0 billion yuan, accounting for the proportion of operating income respectively. 73% and 5339%。
In addition to sales, although the company was spun off in 2018, the official start of operation of the OA+PMS system was in January 2021, and the official start of operation of the SAP system was in September 2020. During the reporting period, most of the company's directors, supervisors and senior executives worked in Great Wall Motors. During the reporting period, the company invested more funds into Great Wall Holdings and Innovation Great Wall. To this end, the Listing Committee of the Shanghai Stock Exchange requested the company and the sponsor to explain whether the listing conditions were met after deducting the related party sales to Great Wall MotorsExplain whether there is a transfer of benefits to the company or related parties, or the adjustment of income, profits or costs through related party transactions, and whether there are seriously unfair related party transactions. In addition, SVOLT was also required to explain whether the company has shared assets, procurement and sales channels, employees, and financial systems with Great Wall Motor and its affiliates in the past and at present, and to sort out the specific time when the company's assets, sales, procurement, production, organization, personnel, personnel, business, and financial systems have officially realized independent operation, and explain the standards and basis for defining independent operation. Gross margin is significantly lower than that of comparable companiesInventory growth far outpaced revenue growthAccording to the application materials, SVOLT prospectus did not disclose the company's main accounting policies for product cost accounting and distribution, and did not disclose the main business cost according to the main product category, and the main business cost was mostly qualitatively described and lacked quantitative analysis. In each period of the reporting period, the gross profit margin of the company's main business was as follows. 23% and 438%, which is significantly lower than the average gross margin of comparable companies. 44%。
The Shanghai Stock Exchange requires the company to explain the technological advancement, market prospects and profitability of its main products, and analyze the reasons why the gross profit margin of the company's main business is significantly lower than that of comparable companies in combination with the market competition pattern, market position, production line construction and capacity utilization. In addition to the significantly lower gross profit margin, the company's inventory rose rapidly in the reporting period, and the growth rate was significantly faster than the growth rate of operating income. At the end of the reporting period, the carrying value of the company's inventory was 6731540,000 yuan, 32.3 billion yuan, 16$4.2 billion and $3.39.4 billion yuan, accounting for the proportion of operating income in each period. 7% and 908%。
According to the prospectus, the company's inventory is mainly based on raw materials, products in process and inventory commodities, and the proportion of the company's inventory balance in each period is respectively. 52% and 9483%。At the end of each period, SVOLT made a large provision for the price decline of raw materials and products in progress, but the prospectus did not disclose the inventory age. The SSE requires companies to disclose the inventory age of various types of inventory at the end of each period, and the main content of long-aged inventoryThe specific composition, quantity and average price of raw materials, products in process and inventory commodities at the end of each period, and whether there is any abnormal average price;and the proportion of orders supported by each inventory category at the end of the reporting period, the post-period digestion, and the specific method of determining the stocking level. Editor: Captain Review: Xu Wen.