Abstract: last night, Xiaopeng auto announced the IPO pricing range of 11-13 US dollars per share. Under the cold winter of auto market, a new round of financing attracted the attention of the market. How can Xiaopeng automobile win the favor of the market and investors? < p > < p > following the listing of Weilai and idealist, Xiaopeng automobile, which is known as one of the top three new forces in automobile manufacturing, submitted its IPO documents to the US Securities Regulatory Commission on August 8, and then came the latest news of listing in the United States last night. Xiaopeng Auto’s IPO plans to issue 85 million ADSS (representing 170 million class a common shares) and grant underwriters 12.75 million over allotment rights. The pricing range is 11-13 US dollars per ads. the proposed financing amount (including over allotment rights) is between 1.075 billion and 1.271 billion US dollars. IP from this, the total market value of Xiaopeng auto will reach 8.613 billion US dollars, and it is estimated that it will officially land on the New York Stock Exchange by the end of this month. After announcing the launch of IPO round financing, Xiaopeng automobile has been attracting market attention. However, in the cold winter of automobile market, how can Xiaopeng automobile win the favor of the market and investors again? Before IPO, the management of Xiaopeng Automobile Co., Ltd. held 40.9% shares, of which he Xiaopeng, the largest shareholder, held 31.6% of the shares, and Ali held 14.4% of the shares, which was the largest external shareholder. Other major shareholders include Xiaomi, GGV Jiyuan capital and Chenxing capital. From the perspective of capital strength, as of the second quarter of 2020, there are cash assets on account of Xiaopeng automobile, totaling 2118.3 billion, with abundant cash on the account. < / P > < p > in addition, Xiaopeng automobile completed the C + round financing in July and August this year, with a financing amount of more than 900 million US dollars, including Alibaba, hillhood, Sequoia, Qatar Investment Authority, etc. Before going public, Alibaba increased the C + round financing of Xiaopeng with us $215 million, and continued to be optimistic about the future development of Xiaopeng automobile. < / P > < p > after the announcement of the pricing range, many investors, including some existing shareholders, have expressed their interest in subscribing for at least US $500 million in the offering, including at least US $200 million for Alibaba, at least US $100 million for coatue, at least US $50 million for Qia and at least US $50 million for Xiaomi. In addition, according to Xiaopeng’s prospectus, primecap, an existing shareholder of Tesla, intends to subscribe for $100 million. Since then, Xiaopeng automobile has obtained 500 million US dollars of intention subscription. According to the middle price of 12 US dollars, these capital will intend to subscribe for 85 million shares, accounting for 49% of the public offering shares of Xiaopeng automobile. < / P > < p > together with the over allotment rights, the value of Xiaopeng auto is about 8.613 billion US dollars, calculated by the median value of 12 US dollars. Based on the median IPO price, the ideal car was valued at about $8 billion. < p > < p > throughout the development process of intelligent electric vehicle industry at home and abroad, enterprises with independent research and development ability have greater advantages, stronger strength and go further in the fierce competition market. Overseas, Tesla has won the first place in the global market value by virtue of its innovative R & D strength, while in China, as an intelligent automobile company that has mastered the whole industry from design, R & D to manufacturing, its independent R & D strength and local intelligent concept have been paid close attention to by the capital market, and become an important chip to attract capital to settle in. As can be seen from the IPO prospectus disclosed on August 8, the revenue of Xiaopeng automobile in 2019 is RMB 2.32 billion, which is more than 238 times higher than that in 2018. Among them, the R & D investment of Xiaopeng automobile in 2019 is as high as 2.07 billion. In the first half of 2020, the revenue of Xiaopeng automobile is 1.003 billion yuan, and the R & D investment is 630 million yuan. Among them, R & D expenses accounted for 89.2% and 62.9% of the company’s total revenue in 2019 and the six months ending June 30, 2020, respectively. The R & D cost, which accounts for nearly 90% of the company’s total revenue, helps Xiaopeng automobile stand firm as an independent and innovative enterprise, and provides strong support for continuous technological innovation. < / P > < p > in addition, according to the information in the prospectus, Xiaopeng automobile has more than 3600 employees, and has R & D centers in Silicon Valley and San Diego of the United States. About 43% (about 1600 people) of the employees are R & D posts, of which 66%, 17% and 17% focus on automobile design and engineering, automatic driving and intelligent operating system respectively. Xia Heng and He Tao, members of the founding team of Xiaopeng automobile, graduated from the Department of automotive engineering of Tsinghua University. Before the establishment of Xiaopeng automobile, they were responsible for the development of GAC’s new energy control system and GAC’s intelligent vehicle and unmanned driving respectively. The addition of several key figures will undoubtedly speed up the development of Xiaopeng automobile in artificial intelligence innovation and automatic driving software. Xiaopeng automobile also said in the prospectus that the company will continue to invest in improving technology in the future. In fact, from the newly launched Xiaopeng P7 in April this year, we can intuitively feel the strength of Xiaopeng automobile in independent research and development technology. Xiaopeng P7 is equipped with self-developed autopilot software xpilot and NVIDIA Xavier autopilot chip. It is the world’s first car equipped with NVIDIA Xavier autopilot controller. Next, Xiaopeng automobile plans to realize xpilot 3.5 in 2021 and xpilot 4.0 in 23 years, with the function of automatic assisted driving for urban road conditions. < / P > < p > with the continuous improvement of independent R & D capability, “intelligent” technology has become a key information of Xiaopeng Auto’s IPO. According to the prospectus of Xiaopeng automobile, as of June 30, 2020, Xiaopeng automobile has completed 25.1 million kilometers of road test information collection in China, and the lane keeping function has used 11.1 million kilometers in total. About 2.9 million annotated images have been collected in the automatic driving data set, and natural language processing and natural language understanding functions have been developed based on deep learning neural network. < p > < p > AI voice assistant can recognize different keywords, classify texts and understand semantics, support natural language continuous dialogue, understand context semantics, and voice reply can be interrupted at any time, with an average monthly usage rate of more than 99%. In addition, the intelligent navigation system developed on Gaode navigation system has an average monthly utilization rate of 96%. Since the launch of G3 in December 2018, Xiaopeng automobile has completed eight major OTA firmware updates and added 50 new functions to the vehicle. The comprehensive OTA capability provides users with high-quality intelligent experience. < / P > < p > at present, Xiaopeng automobile is the only vehicle enterprise in China that has successfully independently developed a commercial automatic driving software system and achieved mass production. At the same time, it is also one of the first batch of enterprises to realize highway automatic driving in 2020. In April this year, the newly launched Xiaopeng P7 is equipped with self-developed autopilot software xpilot and NVIDIA Xavier autopilot chip. It is the world’s first car equipped with NVIDIA Xavier autopilot controller. It is reported that the latest xpilot 3.0 will launch NGP “navigation guided pilot” which can be used on expressways in early 2021. It can automatically change lanes, overtake other vehicles, identify traffic signs and adjust speed, so as to further expand the intelligent strength of Xiaopeng automobile. < / P > < p > what is more worthy of the market’s attention is that Xiaopeng automobile is the only company among the new automobile manufacturing forces that has developed two intelligent EV platforms (named David and Edward respectively) at the same time, and has developed two models of SUV and sedan based on this. The “strategic plan” of Xiaopeng’s third car was also disclosed in the recent prospectus. At present, Xiaopeng automobile has 100000 self built capacity of Zhaoqing factory and 150000 year capacity of Haima. Next year, it will launch the third product. The utilization rate of the factory will be improved again, the efficiency will be improved, and the gross profit of manufacturing will be increased every year. According to the prospectus, its upcoming third model (based on David platform) can share about 70% of the components with G3, and the development cost of the third model is expected to be significantly reduced. < / P > < p > whether it is the positioning strategy of existing models, or by improving the production capacity to fulfill the delivery commitment, and launching new models to speed up the iterative updating of products, Xiaopeng automobile continues to expand its market share in the middle and high-end intelligent car market. < / P > < p > as the listing schedule is approaching, Xiaopeng automobile will bet more chips on its independent R & D ability and innovative technology, so as to further enhance its leading position in the intelligent vehicle market and strive to go further in the fierce market competition.