According to an announcement released by SAIC Group in the evening of April 20th, this car company’s non-public offering plan to raise 15 billion yuan in China’s A-share market has been approved by the Issuance Examination Committee of China Securities Regulatory Commission.

 

According to the adjusted plan, by issuing non-public offerings, SAIC will raise no more than 15 billion to fund multiple projects including alternative energy vehicles, utility-scale intelligent customization, forward-looking technologies and the Internet of Vehicles, and automobile services and automobile finances.

 

To be more specific, 7.2 billion yuan will be used for alternative energy vehicles projects, 2 billion yuan will go to intelligent customizaiton, 1.9 bllion yuan will go to forward-looking technologies and the Internet of Vehicles, and 3.9 billion will go to automobile services and automobile finances.

 

In the new strategy, SAIC has positioned itself more than just a car manufacturer. This company will allocate more resource to alternative vehicles and intelligent vehicles as well as focus on exploiting the potential of automobile services, including automobile finance and repair & maintenance.

 

To support the Group’s new strategy, SAIC has done many preparatory works including setting up new departments of trade and finance, stepping up the investment in alternative energy products, promoting cross-industry cooperation and adjusting its staff incentive mechanism.

 

In the future, SAIC plans to establish a completed supply chain in the segment of alternative energy vehicles in order to lower cost and speed up products introductions as well as sell 26000 alternative energy vehicles in 2016 and sell 200,000 alternative energy vehicles in 2020; introduce the very first Internet vehicle in the industry, co-developped with Alibaba; establish a services system with around 10,000 shops, based on the platform of CheXiang as well as increase its profit to 300 billion yuan.