Li Auto Responds to Being Added to SEC’s Pre-Delisting List
In response to news that another wave of China concepts stock companies have been added to a “pre-delisting list” by U.S. regulators, Chinese new energy vehicle firm Li Auto responded that it was actively looking for solutions while ensuring that the company’s actual business operation will not be affected.
According to the firm, being added to the list is not equivalent to a complete delisting from U.S. exchanges. According to relevant laws and regulations, companies will be restricted from trading in U.S. stock markets if they fail to submit required documents for three consecutive years. The company issued the following statement: “As a responsible enterprise for investors, our company has been actively looking for solutions and cooperating with the work related to audit papers according to domestic and foreign regulatory requirements.”
Li Auto added that it completed its primary listing in Hong Kong last year, and that U.S. and Hong Kong shares can be exchanged and converted by investors. Meanwhile, the company’s status for a Hong Kong primary listing will not be affected by the relevant regulations of the U.S. shares (which is different from the secondary listing in Hong Kong). The above matters will not have any impact on the actual business operation of the company.
On April 21, the U.S. Securities and Exchange Commission (SEC) added 17 companies including Li Auto, Zhihu and KE Holdings to its “pre-delisting list,” which is the fifth batch of China concepts stock companies to be included in the list since March this year. The SEC claimed that the deadline for the 17 companies to submit their arguments was May 12, local time.
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Li Auto previously announced delivery data for March. During the month, the vehicle manufacturer delivered 11,034 units of its six-seat premium electric SUV Li ONE model, up 125.2% year-on-year. In the first quarter of 2022, a total of 31,716 Li Auto vehicles were delivered, up 152.1% year-on-year. Since delivery, the cumulative delivery volume of the Li ONE has reached 155,804 units.