On March 13th, Nenglian Zhidian announced that the company has completed a new round of issuance and reached a final investment agreement with Highbridge Capital Management, a subsidiary of JPMorgan Chase. Nenglian Zhidian will issue 4761905 American Depositary Shares (ADSs) worth approximately RMB 43 million (USD 6 million) to the institution, and can conditionally subscribe to an equal number of ADSs in the future, with a total amount of nearly RMB 100 million.
According to the disclosure documents, the institutions involved in this transaction are Highbridge Tactical Credit Institutional Fund and Highbridge Tactical Credit Master Fund, which are owned by Takahashi Capital under JP Morgan Asset Management. Public information shows that Morgan Asset Management is affiliated with JPMorgan Chase&Co., with over 150 years of asset management experience and a total asset management scale of $2.4 trillion. Takahashi Capital manages $4 billion in assets for global institutional investors, pension funds, foundations, and high net worth individuals.
At present, China's transportation energy sector is undergoing a transition from gasoline powered vehicles to electric vehicles, and with the transformation of transportation energy consumption scenarios, charging stations are accelerating their popularity. According to data from the China Electric Vehicle Charging Infrastructure Promotion Alliance, as of January 2024, the cumulative number of charging infrastructure in China was 8.861 million units, a year-on-year increase of 63.7%.
Previously, the business data disclosed by Nenglian Zhidian showed that its charging service business grew rapidly and achieved order side profitability in January 2024. The profit level remained positive for five consecutive months and continued to expand in February. Nenglian Intelligent Electric is expected to see a year-on-year increase of 80% in charging volume in 2023, or reach 5 billion kilowatt hours, far exceeding the year-on-year growth rate of 55.8% in China's new energy vehicle ownership in 2023. Equivalent to 3.3 times the public charging capacity in the United States in 2023 and 60% of the public charging capacity in Europe.
In addition, Nenglian Zhidian estimates that its annual revenue for 2023 will be between RMB 310 million (approximately USD 44 million) and RMB 330 million (approximately USD 46 million), with a year-on-year increase of 234% to 256%; Nenglian Zhidian's parent company, Nenglian Holdings, announced in February this year that its refined oil business has achieved overall profitability.