Xiaopeng Motors officially landed on the Hong Kong Stock Exchange, with a market value of over 280 billion Hong Kong dollars, becoming the “first share of smart electric vehicles” in Hong Kong stocks

The first new car manufacturer listed on the Hong Kong Stock Exchange

Xiaopeng Motors officially landed on the Hong Kong Stock Exchange, with a market value of over 280 billion Hong Kong dollars, becoming the "first share of smart electric vehicles" in Hong Kong stocks

Xiaopeng Motors (09868.HK) was listed on the Hong Kong Stock Exchange today with an issue price of 165 Hong Kong dollars per share. Yesterday’s dark trading Xiaopeng Motors closed down 0.4% to 164.3 Hong Kong dollars.

Xiaopeng Motors was listed in Hong Kong in the form of dual listings, and a total of 85 million shares were sold, of which 5% of the public offering was oversubscribed by nearly 14 times. Based on the issue price, the net fund raised was approximately HK$13.781 billion. After this listing, Xiaopeng Motors became the first new car manufacturer listed on the Hong Kong Stock Exchange, won the first share of smart electric vehicles in Hong Kong stocks, and was the first company to be listed in Hong Kong and New York in the past three years.

On the first day of listing, Xiaopeng Motors rose 1.82% to HK$168, with a market value of HK$284.2 billion.

According to the latest prospectus, Jiyuan Capital (GGV), the original shareholder of Xiaopeng Motors, has promised it that for at least six months after the completion of the global offering, Jiyuan Capital will retain at least a total of 50% of its holdings at the time of listing. Equity, which also shows that investors are optimistic about the prospects of Xiaopeng Motors in the era of smart electric vehicles.

Xiaopeng Motors is an electric vehicle manufacturing company. It was co-invested and founded in 2014 by He Xiaopeng, the founder of UC and former president of Alibaba’s mobile business group, Li Xueling, founder of YY, Fu Sheng, CEO of Cheetah Mobile , and Wu Xiaoguang, an executive from Tencent . On August 27, 2020, Xiaopeng Motors was listed on the New York Stock Exchange with an issue price of US$15 per share. In November last year, the share price of Xiaopeng Motors once rose to a maximum of $72 per share.

Xiaopeng Motors officially landed on the Hong Kong Stock Exchange, with a market value of over 280 billion Hong Kong dollars, becoming the "first share of smart electric vehicles" in Hong Kong stocks

Financial data shows that from 2018 to 2020, Xiaopeng Motors achieved revenues of 9.7 million yuan, 2.321 billion yuan, and 5.844 billion yuan, respectively, and realized losses of 1.399 billion yuan, 3.692 billion yuan, and 2.732 billion yuan. In the first quarter of this year, Xiaopeng Motors had revenue of 2.951 billion yuan and a loss of 787 million yuan.

With the increase in revenue, Xiaopeng Motors’ gross profit margin has also increased significantly, from -24.3% in 2018 to -24.0% in 2019, and further increased to 4.6% in 2020, and to 11.2% in the first quarter of this year.

In terms of delivery data, the delivery volume of Xiaopeng Motors increased from 29 in 2018 to 12,728 in 2019, and further increased to 27,041 in 2020; in May this year, the delivery of Xiaopeng Motors was 5,686, compared with the same period last year. A big increase of 483%. As of the end of May this year, Xiaopeng Motors’ cumulative delivery volume this year reached 24,173 units, which was more than five times the same period last year.

According to data from HIS Markit, in the second half of 2020, the P7 has become one of the five best-selling pure electric cars in the mid-to-high-end electric vehicle market. The P7 Pengyi version will be delivered in March of this year. This is a limited edition model. The P5 will be released in April, and it is planned to start mass delivery in the fourth quarter of 2021.

On June 1, Xiaopeng Automobile’s official WeChat disclosed its sales volume in May. The delivery volume was 5,686 units, a 483% increase over the same period last year. From January to May 2021, the cumulative delivery volume of Xiaopeng Automobile reached 24,173 units, compared to 2020. Over the same period an increase of more than 500%. Among them, the delivery volume of Xiaopeng P7 has risen all the way, reaching 3797 units, setting the highest monthly delivery record since the large-scale delivery in July 2020.

In terms of shareholders, the prospectus shows that Xiaopeng Motors co-founder, chairman and CEO He Xiaopeng and its affiliates are the controlling shareholders of Xiaopeng Motors, holding 21.75%; Taobao China holds 11.9% and idg Capital holds 4.8%. Xia Heng, co-founder and president of Xiaopeng Motors, and its affiliates hold 3.8%, Wuyuan Capital holds 3.2%, and Jiyuan Capital holds 2.8%.

Xiaopeng Motors officially landed on the Hong Kong Stock Exchange, with a market value of over 280 billion Hong Kong dollars, becoming the "first share of smart electric vehicles" in Hong Kong stocks

According to HIS Markit data, China is the world’s largest passenger car market in terms of sales in 2020. With rising disposable income, accelerating urbanization and investment in transportation infrastructure, China’s passenger car sales in 2020 Reached 19.7 million vehicles, which will increase to 25.6 million vehicles overdue by 2025.

Specifically, of the 19.7 million passenger cars sold in 2020, 6.3% of the sales (equivalent to 1.2 million) are new energy buses. The sales of new energy buses are forecast to increase to 2.2 million in 2021. It will further increase to 6.1 million in 2025, accounting for 23.9% of China’s total passenger car sales in 2025.

According to the report, China has the world’s largest pure electric passenger vehicle (electric vehicle) market, with sales of approximately 1 million vehicles in 2020. The Chinese electric vehicle market accounts for 45.3% of global electric vehicle sales, which is 3.7 times the size of the US electric vehicle market. . China’s electric vehicle sales are expected to grow at a compound annual growth rate of 33.8% from 2020 to 2025, reaching 4.2 million by 2025, which will exceed the combined sales of electric vehicles in the United States and Europe. It is expected that the penetration rate of electric vehicles in China’s passenger car market will exceed 10% next year, which represents an inflection point for the electric vehicle industry.

The sales of new energy vehicles and new forces continue to exceed expectations, which means that the replacement of fuel vehicles by battery vehicles is the general trend. From the national policy point of view, support for new energy vehicles are overweight, in November last year, the State Council issued the “new energy automotive industry development plan (2021-2035 years)” in the proposed 2025 my country’s new energy automotive new car sales To reach about 20% of the total sales of new cars.

The Biden government of the United States has resumed its new energy plan, and plans that the share of electric vehicles in the United States will reach 25% in 2026, and the annual sales of electric vehicles will reach 4 million.

In addition, countries or regions including the United Kingdom, the Netherlands, Canada, France, and Spain will successively ban the sale of fuel vehicles from 2030 to 2040. Norway will ban the sale of fuel vehicles at the earliest point in time and will be implemented in 2025.

In addition, looking at sales data, in the first four months of this year, China’s new energy vehicle production and sales volume reached 750,000 and 732,000, respectively, up 2.6 times and 2.5 times year-on-year, showing explosive growth. On May 28, Xu Haidong, deputy chief engineer of the China Automobile Association, predicted that China’s new energy vehicle sales this year is expected to reach 2 million.

The purpose of the fundraising of Xiaopeng Motors is to expand the company’s product portfolio and develop more advanced technologies, including the introduction of new models, improve the company’s hardware capabilities, and other technology investments; enhance brand awareness through marketing strategies to promote sales; Expand service, sales and overcharge network; increase production capacity; increase visibility in international markets such as Europe.

As the US Securities Regulatory Commission continues to tighten supervision over the listing of Chinese concept stocks, the U.S. stock market has changed from a “gold rush” to a dangerous place full of unknown risks. Therefore, returning to Hong Kong for listing has become a common choice for many companies. Since last year, Chinese concept stocks have chosen to return to Hong Kong for secondary listing. Companies such as JD.com , NetEase , and B Station have all completed secondary listings in Hong Kong.

It’s worth noting that, unlike other Chinese concept stocks that are listed on the Hong Kong Stock Exchange, Xiaopeng Motor’s Hong Kong IPO is not a secondary listing, but a dual primary listing (Dual Primary Listing), that is, the company trades in two securities. All listed companies are listed at the same time and meet various regulatory requirements for listed companies in both places. It is reported that Xiaopeng Motors has returned to Hong Kong stocks with a “dual main listing” method, which can meet the access conditions of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, and facilitate A-share investors to make use of Hong Kong Stock Connect to invest and activate stock transactions.

In March, Reuters reported that US-listed repairer of the new forces top three Wei to car (NIO), Xiaopeng automobiles and ideal car (LI) traced the fastest this year, plans to list in Hong Kong. The three companies, Weilai, Xiaopeng and Ideal, plan to reissue at least 5% of their enlarged share capital in Hong Kong.

In comparison, Weilai focuses on the battery swap mode, ideally on the hybrid mode, while Xiaopeng Motors is engaged in the design, R&D, manufacturing and marketing of smart electric vehicles, while also focusing on the research and development of autonomous driving technology. According to data from IHS Markit, Xiaopeng Motors is the only auto company in the Mainland that independently develops full-stack autonomous driving technology and applies the software to mass-produced cars.

In addition to Xiaopeng Motors, the recent sales performance of Weilai and Ideal has also been reported for some time. According to industry analysts, the leading companies in the mainland’s new car manufacturers are still scarce targets.

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