He Xiaopeng rings the bell again: another 30 billion will be spent in the next stage

In 2025, the market share will exceed 10%.

On July 7, Xiaopeng Motors listed on the Hong Kong stock market in the form of "dual primary listing" and simultaneously held listing ceremonies in Hong Kong and Guangzhou. The senior management team and investors of Xiaopeng Motors were all present.

The day before the official listing, Xiaopeng Motors announced the IPO results. This Hong Kong stock listing issued a total of 85 million shares, including the Hong Kong public offering of 4.25 million Class A common shares and the international offering of 80.75 million Class A common shares, each accounting for the global offering 5% and 95% of the total shares.

Among them, the Hong Kong public offering was oversubscribed by 14.73 times, and the final price of Xiaopeng Motors' IPO was 165 Hong Kong dollars per share, which was a 2.2% discount to US stocks on the previous trading day, and the fundraising scale was approximately 14 billion Hong Kong dollars.

During the public sale stage, Xiaopeng Motors received a total of 68,685 valid applications, with a rate of 10% for one hand, and one hand among the 20 subscriptions was stable. Some netizens even said that the Hong Kong stock market got a rare share of triple the subscription amount.

As of the close of this afternoon, Xiaopeng Motors Hong Kong stocks fell slightly below the issue price, with a minimum of 159 Hong Kong dollars and closing at 164.8 Hong Kong dollars, with a total market value of 278.7 billion Hong Kong dollars.

Generally speaking, breaks in Hong Kong stocks are more common. Among the new stocks listed in Hong Kong this year, nearly half of them broke on the first day of trading. Baidu, B Station, and Naixue’s tea all broke.

On the other hand, a break may mean that the previous price was too high and investors appeared to be more cautious, but it does not represent the future stock price trend. The future depends on the profitability of Xiaopeng Motors and what new stories it can bring to the capital market.

Xiaopeng Automobile’s vice chairman and president Gu Hongdi said, “Because this is a dual primary listing, it may be different from the performance of some newly listed companies. It is related to the share price of Xiaopeng America because these two Stocks circulate with each other. In the short term, some volatility gaps will be balanced through one or two days of trading. This is a characteristic of the two listings."

The next step will have to spend another 30 billion

Unlike Kuaishou, Station B, and Baidu, which have returned to Hong Kong stocks from U.S. stocks, Xiaopeng Motors has been listed in the U.S. for less than a year and cannot meet the conditions for a "secondary listing" of Hong Kong stocks, so it chooses "dual primary listing".

In contrast, “dual primary listings” need to comply with more stringent regulatory standards. Xiaopeng Motors is not only the first major Chinese concept stock to be listed in Hong Kong and the United States in three years, but also means that Xiaopeng Motors can meet the requirements of Shanghai and Hong Kong Under the access conditions of Shenzhen-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, domestic A-share investors may be able to directly purchase Xpeng Motors shares in the future.

Earlier, an analyst stated to Future Auto Daily (ID: auto-timer) that "Xiaopeng's IPO in Hong Kong aims to make use of the northbound market under the Mainland-Hong Kong interconnection mechanism to reach qualified investors in Mainland China."

Gu Hong said frankly, "One of the goals of returning to Hong Kong is to get through with A-shares." However, from the perspective of listing, it is not yet suitable. "We will pay close attention to A-shares. Shares are like the mother market to us. We will definitely consider returning to A shares when the time is right."

Constantly planning in the capital market, because new cars are getting better, but they still haven't achieved self-blood making. Xiaopeng Automobile’s financial report shows that in the first quarter of 2021, it lost 790 million yuan, and the other two of the three brothers of the new forces are also at a loss.

Has not yet achieved profitability, but the car manufacturing business is still "burning money." Xiaopeng Motors Chairman He Xiaopeng said frankly, "If it takes about 20 billion yuan from 0 to 1, and from 1 to 100, it will definitely require more than 30 billion yuan in terms of globalization, technological innovation, and organization. Everyone needs more. Prepare food and grass."

Over 10% market share in 2025

Relying on financing for "blood transfusion" is not a long-term solution. The ultimate goal is to achieve profitability.

Recently, Xiaopeng Motors announced its June sales data. A total of 6,565 vehicles of its three models have been delivered, a year-on-year increase of 617%. In the first half of the year, Xiaopeng's cumulative delivery volume has exceeded that of the whole year of 2020, reaching 30,738 vehicles, which is 5.6 times that of the same period last year.

Although the growth rate is amazing, it is not enough for Xiaopeng. To achieve revenue growth, it needs to sell more cars and put more affordable and easy-to-volume models on the market. In the second half of the year, Xiaopeng G3i and Xiaopeng P5 assumed such a task.

Gu Hongdi predicts that "Xpeng P5 will be launched in the fourth quarter, and when new cars are launched, some profit margins may be made." However, when Xiaopeng P5 completes its capacity ramp, the decline in gross profit rate will gradually ease.

At present, Xiaopeng Motors has three production bases, namely Zhaoqing, Guangzhou and Wuhan, with a design capacity of 100,000 vehicles. Through double shifts or simple expansion, the production capacity can reach 150,000 to 200,000 vehicles.

He Xiaopeng is very confident in production capacity, "The production capacity of the Zhaoqing plant will far exceed the designed capacity at the end of this year, and the actual peak capacity of these three factories may be close to 500,000 vehicles."

Based on the next product planning and production capacity estimation, Gu Hongdi expects that "by 2025 (Xpeng will be in) the smart electric vehicle market (reach) more than 10% (market share). In some market segments, ( Xiaopeng’s market share will be far greater than 10%, which is our goal.”

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