CIMC Vehicles files a going public application to SEHK
On December 27, CIMC, a group dually-listed on both the A-share market and H-share market, announced that its controlled subsidiary CIMC Vehicles (Group) Co., Ltd. (CIMC Vehicles) have officially filed an application to the Stock Exchange of Hong Kong Ltd. (SEHK) for independently going public on the main board, and its application has been accepted by the SEHK. This is a significant progress in the building of the fourth independent going public platform after CIMC (A+H share markets), Enric (H-share market) and CIMC-TianDa (H-share market).
The announcement revealed that after the proposal to spin off CIMC Vehicles for going public was approved by the board of directors of CIMC on August 9, it was further approved at the general meetings of the A-share and H-share holders respectively. Ultimately, the going public operation depends on the approval of the SEHK and China Securities Regulatory Commission (CSRC), market situations and other factors. According to the announcement on December 4, the application for administrative permission for the spinoff and going public proposal was submitted to and accepted by the CSRC. According to the announcement on December 21, the SEHK confirmed that CIMC could continue the spinoff and independent going public operations.
At the same time, the spinoff and going public proposal al related to CIMC Vehicles’ IPO of H shares and going public on the SEHK. If the spinoff and going public proposal is finally implemented, CIMC will remain to be a controlling shareholder of CIMC Vehicles, while CIMC Vehicles will continue to use the brand name of “CIMC”.
The board of directors of CIMC believed that the spinoff and independent going public of CIMC Vehicles were in general beneficial to CIMC and CIMC Vehicles. If the proposal is successfully implemented, it will enable CIMC Vehicles to further promote its business innovation and provide clear indicators of independent market valuation for investors; CIMC Vehicles’ business performance data will remain to be consolidated into the financial statements of CIMC, so as to improve the overall value of the Group; it will also enable CIMC Vehicles to improve its corporate governance under the supervision of the general public and improve the operation management performance of the Group and CIMC Vehicles.
After independent going public, CIMC Vehicles will have an independent financing platform. Therefore, the financial affairs of other businesses retained by the Group and of the vehicles business will be handled in a more flexible way, which will improve the ability of the Group and CIMC Vehicles to maintain steady cash flow and to develop in a sustainable manner. CIMC Vehicles will be able to attract new strategic investors focusing on semitrailers and other special-purpose vehicles to create new invest groups.
Since its formal operation in 1982, CIMC has been offering high-quality equipment and solutions to global logistics and energy industries. Over the past 36 years, its businesses have extended to a large number of product segments, such as containers, vehicles, energy and chemical storage and transportation equipment, offshore engineering equipment, airport facilities, food processing equipment, heavy-duty trucks, logistics service and industrial parks and zones. Since it was listed in 1994, the Group has been making profits for 24 years in a row. In 2017, CIMC achieved business revenue of 76.3 billion yuan with profit about 2.5 billion yuan.
CIMC Vehicles is now operating its high-quality businesses across the world. In terms of business revenue, it is the second largest business segment under the Group.