He added that the company also plans to expand its sales network outside mainland China after the IPO.
Hozon filed its listing application last month, joining the EV startup in a battle with local rivals ranging from the world’s largest EV maker BYD to Stellantis-backed startup LeapMotor amid fierce competition in mainland China and trade barriers from the United States and the European Union.
“We will consolidate our foothold in Southeast Asia, seek to capture market share in South America, and expand our operations in the Middle East and Africa,” said Fan. “Hozon will work with local authorities and partners to build an ecosystem including R&D, manufacturing, sales and after-sales service around the world.”
Hozon exported 17,019 China-made vehicles in 2023, accounting for 13.7% of its total shipments last year.
Fan said the company’s transformation of the Neta brand into something more high-tech and sophisticated had seen the average selling price of its cars rise to 113,000 yuan ($15,540) at the end of April from 109,000 yuan in 2023.
“Continuous product innovation and adjustments to our marketing strategy will position us to pursue sustainable, quality growth in the future.”
Neta is another name for a patrol plane, a guardian deity in Chinese mythology. The brand is in the low-priced segment in China, targeting low- and middle-income drivers who prefer battery-powered cars over gasoline-powered ones.
Founded in 2014, Hozon has raised 26.4 billion yuan in venture capital funding from 19 investors across 11 funding rounds, according to data compiled by Crunchbase. Backers include Chinese cybersecurity firm Qihoo 360 Technology, CITIC Securities and Beijing municipal government’s electric car maker BAIC New Energy.
Hezhong’s loss last year was 6.9 billion yuan, down 40 percent from the previous year.
Fang did not disclose the size of his target IPO, but Bloomberg reported that it could be around $1 billion, which would make it one of the top five Shanghai listings this year.
The company will become the latest mainland Chinese electric vehicle maker to seek a Hong Kong listing, following rivals such as Xpeng and Nio.
The Chinese government has been speeding up approvals for overseas listings by mainland Chinese companies since April as part of efforts to support the slowing economy.
Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the Lujiazui Forum in Shanghai on June 19 that as of June 18, 158 companies had received approval for overseas listings. Of these, 85 were headed to Hong Kong and 73 to New York.
China is the world’s largest EV market, accounting for 60% of global electric vehicle sales. Since mid-February, mainland automakers have slashed prices of almost all EVs and gasoline-powered vehicles in a bid to maintain market share amid a price war.
The White House announced in May that it would quadruple tariffs on Chinese-made electric vehicles as part of a package of measures to protect US companies from unfair subsidies given by China to its domestic companies.
“We will continue to focus on improving our profitability,” said Fan. “Even if the price war intensifies, we will not compete on price. I believe competition is about striving to bring higher value to users.”
