2. With the improvement of financing scale, the valuation of new car manufacturing enterprises is rising gradually, and the financing difficulty of private market is increasing. IPO is considered to be the way to go, which also meets the investors’ expectation of exit and realization. < p > < p > 3. According to the prospectus, Weilai focuses on user experience and high-end brand, ideal car focuses on plug-in hybrid technology and cost control, and Xiaopeng focuses on intelligent driving technology. However, this is only the comparative advantage they convey, which does not mean that they have no investment in other fields. < p > < p > only in the past three months, with the IPO application submitted by Xiaopeng automobile in the United States, the other two big new car manufacturers who once sat on both sides of Li Bin and “recalled the changes” with him, embarked on the same journey with him – IPO in the United States. If it goes well, the three brothers will soon meet in the US stock market. < p > < p > on August 8, Xiaopeng automobile submitted its IPO documents to the US Securities and Exchange Commission (SEC) to list on the New York Stock Exchange with the code “xpev”. The Underwriters include bank of America Securities, Credit Suisse, JPMorgan Chase, etc. Less than two weeks ago, on July 30, ideal auto was officially listed on NASDAQ with the securities code of “Li”. On September 12, two years ago, Weilai auto was officially listed on the New York Stock Exchange, code named “NiO”, which opened the IPO road of China’s new car manufacturing enterprises. < p > < p > due to the huge losses and the unpredictable sales volume, the IPO path of new car manufacturing enterprises is full of doubts. At that time, Weilai automobile was carrying a loss of more than 10 billion yuan. As a result, the opening price on the first day was $6, which was 4.2% lower than the issue price of $6.26. At the time of the ideal auto IPO, the industry is worried about whether it will repeat the same path. On the first day of the ideal IPO, the opening offer was $15.5, up 34.78% from the offering price of $11.5. After four consecutive days of gains, it has now declined for four consecutive days, closing at $15.63 on August 12. The performance of the two front runners also makes the IPO performance of Xiaopeng automobile quite controversial in the industry. < p > < p > as Tesla’s outstanding “disciples” in China, Weilai, ideality and Xiaopeng have all obtained financing of at least C + + round before IPO, and both the amount of financing and the delivery of vehicle models are in the forefront of new car manufacturing enterprises. At a time when the funding window closes, IPOs are thought to take them further into the safe zone, but that doesn’t mean a final win. “IPO can’t show the follow-up development of auto companies. The most important thing is the monthly delivery volume and market reputation, because in the long run, not one car model can determine the life and death of a new car manufacturing enterprise. It needs the success of several models in a row.” Zhang Junyi, vice president and chief growth officer of Ping An Group, told the reporter of economic observer. Through the IPO prospectus, we can see the capital utilization and hematopoietic mode of these three enterprises. < / P > < p > although the time difference between them is less than half a year, due to the difference in the early business rhythm, there is a big difference in the vehicle delivery and revenue of Weilai, idealized and Xiaopeng IPO nodes and before IPO. From 2016 to the end of June 2018, Weilai delivered only 100 es8 vehicles with revenue of 46 million yuan, which was the lowest among the three companies. It is ideal that from 2018 to the end of the first quarter of 2020, it will deliver 3900 vehicles with revenue of 1.136 billion yuan. From 2018 to the end of June 2020, Xiaopeng automobile has delivered 18227 new cars with a total revenue of 3.417 billion yuan, ranking first. However, such a scale is far from the level of profitability. Previously, some automobile analysts said that the profit node was the annual sales of 50000 to 100000 vehicles. As a result, the three new car companies were in a loss state before IPO. According to the prospectus, the accumulated net loss of Weilai automobile in the two and a half years before IPO reached 10.91 billion yuan, that of ideal automobile was 4.047 billion yuan in two years and three months, and that of Xiaopeng automobile was 5.885 billion yuan in two and a half years. In contrast, Weilai automobile has the highest loss, which is almost twice as much as that of the other two automobile enterprises, while Xiaopeng’s loss is higher than ideal. < / P > < p > in the case of small sales volume, it is difficult for new car manufacturing enterprises to dilute their car manufacturing costs and their gross profits have not turned positive, so they are in the dilemma of “selling more, losing more”. Among the three enterprises, the cumulative sales volume of Weilai automobile is the lowest, but why is the amount of loss far more than the other two enterprises? This is mainly affected by operating expenses. In fact, when the sales volume is not large, the operating expenses become the main reason for the losses of the three newly built automobile enterprises, and the differences in the investment of automobile enterprises in this field, as well as the differences in revenue and cost, lead to different net loss figures. < p > < p > according to the prospectus, the revenue of Weilai automobile was only 46 million yuan in the two and a half years before IPO, and the sales cost was 200 million yuan, while the accumulated operating expenses was as high as 10.74 billion yuan, almost equivalent to the total net loss. The total revenue of ideal automobile reached 1.136 billion yuan. Meanwhile, due to the good control of sales cost, its accumulated gross profit was positive, reaching 68.19 million yuan. The operating expenses were lower than that of Weilai and Xiaopeng, only 3.29 billion yuan, accounting for 81.3% of the accumulated net loss. Xiaopeng automobile has recorded revenue since 2018, but its gross profit is still negative. In the two and a half years before IPO, its operating expenses accumulated 6.35 billion yuan, exceeding its net loss limit. Although the relative investment of this part is not weaker than that of Weilai automobile, due to its high operating income, the impact of this part of expenses on the final profit is weaker than that of Weilai automobile. < / P > < p > operating expenses include R & D expenses and sales, general and administrative expenses (hereinafter referred to as “administrative expenses”), and the proportion of investment in these two areas of the three enterprises is also different. According to the prospectus, the accumulative R & D expenses of Weilai automobile in the two and a half years are 5.53 billion yuan and 5.22 billion yuan respectively, with no significant difference between them; the total investment of ideal automobile in these two fields in two years and three months is 2.15 billion yuan and 1.14 billion yuan respectively, the latter is about half of the former; the accumulative investment of Xiaopeng automobile is 3.75 billion yuan and 2.599 billion yuan, the latter is nearly 70% of the former. < / P > < p > it can be seen that the projects that the three new car manufacturing enterprises spend the most are the R & D expenses, among which the R & D expenses of Weilai automobile are the most, Xiaopeng is the second, and ideal car is the least. In terms of the proportion of accumulated R & D expenses in net loss, Weilai was 50.96%, ideal was 53.13%, and Xiaopeng automobile was 63.7%, accounting for the highest proportion among the three. In terms of management expenses, Weilai automobile is significantly higher than the other two, which is mainly due to the higher number of employees and salary expenses brought about by the “nanny style” user service of Weilai automobile, as well as the high marketing expenses for creating high-end brand image. < / P > < p > the proportion of employees in different business directly reflects the different business layout of the three automobile enterprises. As of June 30, 2018, the number of employees in Weilai has reached 6231, and the business sectors with the proportion of employees from high to low are user experience, R & D and manufacturing; as of June 30, 2020, the number of employees of Xiaopeng automobile is 3676, and the proportion from high to bottom is R & D, sales and marketing, and manufacturing. As of December 31, 2019, ideal automobile has 2682 employees, which is the least among the three. The proportion of employees in R & D and production sectors is the same, followed by sales and marketing personnel.
compared with the first mock exam, only 100 cars were sold, the number of users on the user experience side exceeded the number of employees in the other two vehicles. This mode has brought a high salary cost to employees, and the total salary of the employees in two and a half years is 2 billion 200 million yuan, which is equivalent to Xiaopeng’s 2019 revenue. < p > < p > from the perspective of operation and financial situation, Weilai Auto’s IPO appears to be the most “in a hurry”. Compared with other new car manufacturing enterprises, Weilai automobile has the fastest financing pace, and completed the d-round financing of US $1 billion as early as November 8, 2017. However, due to the high investment in user experience and brand building in the early stage, its funding gap is still very large. “At that time, Weilai IPO rush time point composition is bigger.” An auto industry investor told the economic observer. With the improvement of financing scale, the valuation of new car manufacturing enterprises is gradually rising, and the financing difficulty of private market is increasing. IPO is considered to be the inevitable way, which also meets the investors’ expectation of exit and realization. < / P > < p > the desire for capital is the hard driving force for IPO of new car manufacturing enterprises. As of June 30, 2018, the cash and cash equivalents of Weilai automobile were 4.423 billion yuan. Judging from its loss of 3.3 billion yuan in the first half of 2018, this cash level is difficult to support for one year. However, the “rush” listing of Weilai automobile caused a basin of cold water. It broke out on the day of listing, and its stock price declined in a “cliff style” manner, with a market value of 6.77 billion US dollars, which eventually melted to 1 billion US dollars, which was also lower than the previous expectation of 1.8 billion yuan. < p > < p > after two years of development, Xiaopeng’s cash flow situation before IPO is slightly better than that of Weilai. As of the end of March 2020, the cash and cash equivalent of ideal car is 1.05 billion yuan. Although the amount is not high, according to the loss of 77.11 million yuan in the first quarter, this money may be enough for the ideal car to live for one year. Moreover, in June before the IPO, ideal automobile obtained $500 million round D financing led by meituan, which is equivalent to adding a strong buff to its IPO. < p > < p > Xiaopeng’s cash flow before IPO was also tight. As of June 30, 2020, its cash and cash equivalent is 1.06 billion yuan, which is far less than its annual expenses according to the loss of 790 million yuan in the first half of 2020. However, in July and August, Xiaopeng automobile obtained two rounds of financing, i.e. round C and C + +, so it expects to hold more than 8.5 billion yuan of cash assets before IPO. This will not only help to improve the effect of its IPO, but also ease the thirst for funds. Xiaopeng said in the prospectus that the existing cash and cash equivalents, Series C financing proceeds and IPO proceeds are sufficient to meet its capital expenditure in the next 12 months. < p > < p > according to the prospectus, the application scale of Xiaopeng auto is $100 million, but Xiaopeng automobile said that this is only a place holder for routine disclosure, the range of offering price and the number of shares to be issued are not determined, and the amount of financing has not been determined. The reporter of Economic Observer learned from the investment circle that Xiaopeng automobile claimed its long-term target market value after IPO was 40 billion US dollars. This market value is nearly three times higher than the current Weilai and ideal, causing controversy in the industry. As for the ideal car stock price opened high and then fell, some investors told the economic observer that the phenomenon of insufficient aftereffect will continue, and it is good to seize the opportunity to choose to go public as soon as possible. For new car makers, this year’s IPO opportunities lie in Tesla’s pull, and the head of the new car companies in the overall new energy vehicle market downturn, showing a strong growth momentum in the C-end. ” In fact, the faster the IPO is, the more uncertain the situation is. ” The investment community said. Another investor told reporters that IPO will become the capital watershed of new car manufacturing enterprises, who will be listed first and who will survive first. < p > < p > IPO is obviously not the end of new car manufacturing enterprises, but the starting point of another survival stage. As the star enterprise of the earliest IPO, the stock price of Weilai has fallen to the edge of “one dollar” delisting in the middle of 2019, and Li Bin is also known as “the worst person in 2019”. In the IPO prospectus, the three auto companies have used nearly 50 pages to write down the risk factors. I wonder if the three brothers are copying each other in private. There is a large overlap of more than 100 risk factors listed, including policy, vehicle performance, user service that are not in line with customer expectations, and providing charging