In the context of Sino -US tensions, one of China's major autonomous driving startups will be listed in New York this week.
Wenyuan Zhixing is a company that develops autonomous driving software. It has listed a variety of ways of geopolitics to damage its investment to potential investors.
The US government's export control of Chinese companies may limit Wenyuan Zhiyi to get advanced semiconductor opportunities.A supplier of Wenyuan Zhixing has been identified as a "Chinese military enterprise". If the United States expands the scope of control, it may make Wenyuan Zhixing's supply chain more complicated.The efforts to crack down on Chinese autonomous vehicle companies may limit the use of Wenyuan Knowledge Technology in the United States.
Wenyuan Zhixing also stated that the government's "development of our business may intervene or affect our operations."
Investing in a family that has been established for only seven years and has been in emerging industries always has risks, but it does not always include the risks that are sandwiched between two superpowers.Wenyuan Zhixing plans to be listed on the Nasdaq Stock Exchange.
Wenyuan Zhixing, based in Guangzhou, is one of the many electric vehicles and automotive technology companies in China. These companies are seeking funds from the US financial market to support their global ambitions, although Washington is also introducing them to not participate in the United States.Market policy.
According to two people familiar with the matter, the Bayeng government has intended to launch a proposal to prohibit the most advanced Chinese autonomous driving software.The ban will be suitable for all L3 levels and above, that is, "conditional automation" software. This software allows the vehicle to driving autonomous driving, but someone needs to sit behind the steering wheel before preparing to intervene at any time.The proposal will add another obstacle to Chinese auto manufacturers who want to enter the US market, and they have faced heavy tariffs.
"Considering the supervision review that Chinese products have faced, (Chinese auto manufacturers) have become very difficult to enter the US market," said Josh Lener, a professor of risk investment and entrepreneurship in Harvard Business School.
Blue -chip startups, which were originally intended to be listed in the United States, have now set their sights on other places, or have encountered geopolitical obstacles.
The U.S. Congress passed a law in April this year, asking Tiktok's Chinese parent company byte to beat this popular social media application, otherwise it will face the prospect of being banned in the United States.The fast -fashion retailer SHEIN, established in China, has submitted documents for listing in New York last year. However, due to the increasingly intensified US -China tension, this retailer has focused on listing in London.
Lena said that Wenyuan Zhiyi and other Chinese companies are still willing to endure the US censorship, showing the challenges facing domestic financing in China.As the Chinese market regulatory agencies have tightened the demand for listing in the market in the domestic stock market and the real estate market falling into the downturn. The number of first public fundraising companies in mainland China decreased by 75%in the first half of 2024.
Wen Yuan Zhixing was founded in 2017. He is now the company's chief executive officer. He had previously served as chief scientist at the autonomous driving department of technology giant Baidu.Wenyuan Zhixing operates autonomous driving taxi services in China and the UAE, and provides autonomous driving software to auto manufacturers.The company also sells unmanned buses, trucks and sanitation vehicle software.
According to the Pitchbook of the start -up company, Wenyuan Zhixing has raised $ 1.4 billion, and the latest valuation is about $ 5 billion.Some well -known investors from Wenyuan Zhixing include the fund Alliance Ventures consisting of Nissan Motors, Renault Group and Mitsubishi Motors, and German car parts manufacturer Robert Bosch Co., Ltd.
Silicon Valley Giants, who dominate the advanced chip business, are also early investors and major suppliers of Wen Yuanzhi.
Wenyuan Zhixing said that the company plans to raise up to 440 million US dollars of funds through this IPO and some investors including some existing shareholders.The company said its revenue in 2023 was $ 55 million, a 24%decrease from the previous year.The company continues to invest huge investment in R & D, and its net loss has exceeded its revenue, and last year's losses were US $ 268 million.
Although Wen Yuan Zhixing and Xingqi listed in detail in the documents provided by the public offering of stocks, this is what all listed companies must do, but it also dilutes the impact of trade measures aimed at to prevent key technologies.
Wenyuan Zhixing said that the export control of the United States prevented a chip supplier that did not give the name to provide some semiconductor products to China, but it said that it did not affect Wenyuan Zhixing, because the limited chips were not purchased by the company to buy by the company.That kind.The Pentagon of the United States has identified another supplier as a relationship with the military, but Wenyuan Zhixing said that the company does not think it will affect its ability to continue to use the supplier.Wen Yuan Zhixing refused to comment on this article on the grounds of the "silent period" restriction before IPO.
Wenyuan Zhixing's business scale in the United States is small, limited to research.The company is one of the seven companies that can be drove in the car without a safe driver in California.According to the data from the California Motor Vehicle Administration, last year, 14 cars in Wenyuan Zhixing drove a total of more than 40,000 miles on the road of California. Although most of the remaining mileage except about 50 miles except about 50 mileIt is completed in the case.Hundreds of unmanned cars operated by Waymo, a subsidiary of Google's parent company Alphabet, drove millions of miles in California last year.
This month, California's public utility supervision agency approved Wen Yuan Zhixing to test passenger autonomous cars in the surrounding area of San Jose (whether there is a safe driver), but the company cannot provide services to the public.
Dan Yuanzhi knows most employees in China, and most of the company's research is also carried out in China.As part of the establishment of global leadership in this field, Chinese companies have been actively expanding the tests of driverless cars on public roads.
Gyan Monte, the executive partner of Deepwater Asset Management Company, headquartered in Minnespolis, said that Wenyuan Zhixing "faces the difficult battle to win the support of investors, because there are a variety of geopolitical risks"" ".
China Automobile Technology Co., Ltd. wants to be listed in the United States, and may be hoping to raise a lot of funds before the election in November this year.The next U.S. president may "close the IPO window of China and the United States," Monster said.
According to a announcement issued by China Securities Regulatory Institution in April this year, another Chinese autonomous driving startup Pony Himawu intends to be listed on the Nasdaq or the New York Stock Exchange.All Chinese companies seeking listed in the United States must be approved by Chinese regulatory agencies.
Chinese electric vehicle manufacturers have been listed in the United States in May this year.It raised 441 million US dollars in this listing, which was the first public fundraising of Chinese companies in the world's largest Chinese companies since 2021.Ji Ji stocks have fallen by 27%compared to the issue price.
The online car rental company Didi went to the United States without getting government approval.At that time, the company's development momentum was rapid, occupying the leading position of the Chinese online car rental market, and an amazing investor, including in 2016Didi invested $ 1 billion in apples.However, the regulatory agency punished Didi.
Two days after Didi was listed in the United States, the company stopped registering new users in China and began investigating its behavior. Didi applications are offline from the online application store.After six months of listing, Didi announced that it would delist from the New York Stock Exchange.
