Xiaopeng auto will land in NYSE next Thursday: fund raising scale or super ideal

According to the IPO news, Xiaopeng automobile, one of the “new forces of car making” in China, updated its F-1 offering document submitted to the US Securities and Exchange Commission (SEC) on August 21, US Eastern time, and planned to officially list on the New York Stock Exchange with “xpev” as the stock code on the evening of August 27, Beijing time. < / P > < p > this means that in less than 30 days, ideal auto and Xiaopeng auto will be listed on NASDAQ and NYSE successively, and Xiaopeng auto will become the third domestic “new force of car manufacturing” to successfully list in the United States after Weilai and ideal. < p > < p > Xiaopeng Auto plans to issue 85 million American Depository shares (ads) in this IPO, each ads is equivalent to two class a common shares, and the issuance range is proposed to be between 11 and 13 US dollars per ads. < / P > < p > based on the upper limit of the issuing range, the IPO fund-raising scale of Xiaopeng automobile will reach 1.105 billion US dollars, exceeding the IPO fund-raising amount of ideal automobile. Ideal auto issued 95 million ads shares in its IPO at the end of July, at a price of $11.5 per share, which means that the IPO raised $1092.5 billion, and the issue price of $11.5 per share exceeded the upper limit of its proposed issuance range. < / P > < p > in fact, the $1.092.5 billion fund-raising scale of ideal automobile has exceeded the $1.0 billion fund-raising amount of Weilai when it went public in 2018. In addition to Credit Suisse, JPMorgan Chase and Bank of America as co lead underwriters, ABC international, BOC International, Fortis securities, Haitong international and tiger securities are also included in the underwriting group; the underwriters have a total of 12.75 million ads over allotment rights, that is, if the “green shoe mechanism” is implemented, the IPO fund-raising amount will reach 1.27 billion US dollars. < p > < p > according to the prospectus, the four existing shareholders of Xiaopeng auto, Alibaba, coatue, Qatar Investment Authority and Xiaomi and its affiliated companies will respectively intend to subscribe for ads of up to US $200 million, US $100 million, US $50 million and US $50 million respectively at the IPO price. In addition, primecap management and its affiliated companies are also interested in buying ads worth up to US $100 million at the IPO price. < / P > < p > it’s important to note that primecap management, which was not well known, bought a lot of Tesla shares when they were less than $30, and now it’s nearly 70 times higher. < p > < p > after the IPO, he Xiaopeng, co-founder, chairman and CEO of Xiaopeng automobile, will hold 27.8% of the shares and enjoy 58.9% of the voting rights. The co-founder and President Xia Yan, vice chairman and President Gu Hongdi and co-founder and senior vice president He Tao will hold 4.3%, 2.5% and 1.4% respectively. Among the external investors, alibaba will continue to own 12.7% shares and 14.9% voting rights, which is the largest institutional investor; IDG capital, Chenxing capital, GGV Jiyuan capital and Chunhua capital will hold 5.5%, 3.7%, 3.3% and 2.8% shares respectively. < / P > < p > the board of directors includes he Xiaopeng’s old “comrades” in UC period, Yu Yongfu, who is currently a partner of Alibaba, Liu Qin, founding partner of Chenxing capital, Fu Jixun, managing partner of GGV, and Yang Fei, partner of IDG capital. < p > < p > founded in 2015, Xiaopeng automobile currently focuses on two models: g3suv and P7 four door sports car. According to the data of IHS Markit, G3 is one of the three best-selling electric SUVs in China in 2019, while the single charging range of P7 can reach 706 km, ranking the first among the existing electric vehicles in China according to the new energy vehicle recommended by the Ministry of industry and information technology. < p > < p > Xiaopeng automobile started mass production of G3 in November 2018 and delivered P7 in May 2020. As of July 31, a total of 18741 G3 and 1966 P7 vehicles have been delivered. Xiaopeng said it will launch its third smart electric car in 2021. < / P > < p > in terms of product positioning, Xiaopeng automobile is mainly aimed at the middle and high-end parts of the domestic passenger car market, that is, the price range is set at 150000 yuan to 300000 yuan. According to IHS Markit data, the domestic medium and high-end passenger car market accounts for 30.6% in 2019, while the penetration rate of electric vehicles in the middle and high-end market is higher than that in other price ranges. < / P > < p > based on this positioning, as of June 30, 2020, the physical sales and service network of Xiaopeng automobile covers 52 cities in China, and most of them are located in the shopping centers of the first and second tier cities, with a total of 147 stores and service centers. < p > < p > in the prospectus, Xiaopeng automobile emphasized that automatic driving technology is its core competitiveness. As of June 30, 2020, more than 90% of the users who purchased G3 models chose autonomous driving models. About 50% of the customers ordered an upgraded version of xpilot3.0, which will support the upcoming autopilot system. The new version will be launched on 2021. The autopilot cruise control function of Xiaopeng car has been accumulated for 25 million 100 thousand kilometres. It is used for 11.1 million km. < / P > < p > in June 2020, the average utilization rate of adaptive cruise control function is 66%, and that of lane centering control function is 43%. In the second quarter of 2020, customers of Xiaopeng automobile have used the automatic parking system more than 230000 times, of which about 80% are successfully completed without human intervention, and the average utilization rate of automatic parking function in June is 46%. In terms of production, < / P > < p > in terms of production, G3 of Xiaopeng automobile cooperates with Haima automobile to produce G3. Haima’s factory in Zhengzhou, Henan Province has more than 30 years of automobile manufacturing experience. In addition, Xiaopeng automobile has set up its own factory in Zhaoqing, Guangdong Province. The annual capacity of Haima factory and Zhaoqing factory is 150000 and 100000 units respectively. In terms of financial data, since Xiaopeng automobile started to deliver G3 only in December 2018, its net income in 2018 was about 9.7 million yuan (RMB, the same below), of which the automobile sales revenue and other services accounted for 42.8% and 57.2% respectively. < / P > < p > in the first half of 2020, the operating revenue of Xiaopeng automobile was 1.002 billion yuan, slightly lower than that of the same period in 2019, of which the delivery volume decreased from 7165 vehicles in the first half of 2019 to 5499 vehicles, which also led to the reduction of automobile sales revenue from 1.197 billion yuan to 913 million yuan. This is mainly due to the epidemic situation and the backlog of orders in 2018, which will be delivered in the first half of 2019. In terms of gross profit margin, in the first half of 2020, the gross profit rate of Xiaopeng automobile was – 3.6%, which was 34.6% higher than that of – 38.2% in the same period of 2019. < p > < p > according to the second quarter financial report released by Weilai, its gross profit margin in the second quarter has successfully turned from negative to positive, with a comprehensive gross margin of 8.4%, which is significantly improved compared with – 33.4% in the same period of 2019 and – 12.2% in the first quarter; while ideal automobile realized positive gross profit early after the mass production of ideal one, with the gross profit margin of 8.0% in Q1 and 13.3% in Q2. < p > < p > as of June 30, 2020, cash and cash equivalents held by Xiaopeng automobile were 1.061 billion yuan. Then in August, Xiaopeng automobile completed its own C + round financing, with a financing scale of 900 million US dollars. In other words, the cash and cash equivalents held by Xiaopeng automobile before the IPO will exceed RMB 7 billion, and there will be as much as US $1 billion of IPO fund-raising. < / P > < p > as Zhou Yahui, the former chairman and opay CEO of Kunlun world wide, said in the circle of friends in early June, “the three guys who dare to turn financial freedom into non freedom in the past few years have indeed created a new era.”