On the evening of August 21, Xiaopeng automobile updated the F-1 prospectus, proposed to issue 85 million ads (representing 170 million class a common shares), and also granted the Underwriters 12.75 million ads over allotment rights, with a pricing range of 11-13 US dollars / ads. at the middle price, the proposed financing amount (including the over allotment rights) of Xiaopeng automobile is 1.173 billion US dollars, and the maximum financing amount can reach US $1.271 billion. At the middle price, the value of Xiaopeng is about 8.613 billion US dollars.
Xiaopeng automobile will become the third new car manufacturing enterprise listed after Weilai automobile and ideal automobile. On the other hand, China’s new energy vehicle market is entering a stage of comprehensive competition. According to the data of China passenger car market information association, as of the second quarter of 2020, the cumulative market share of the top five auto manufacturing forces in terms of sales volume has increased from 43% in 2018 to 90%.
Wang Xing once predicted that in the future, only three new forces of car making will survive, namely, Wei Lai, ideal and Xiao Peng. Compared with the other two companies, he Xiaopeng, the founder of Xiaopeng automobile, has no previous automobile related experience, which can be said to be the only cross-border car maker. How does Xiaopeng survive the competition of new car making? Xiaopeng auto is about to land in the capital market, and what preparations have been made?
automobile is a technology + capital intensive industry, with large demand for fixed assets investment and working capital. In order to have the whole chain capability from R & D, manufacturing to sales and service, automobile companies need to have continuous investment.
the investment of an automobile production factory with an annual output of 100000 vehicles is about 2 billion yuan. Therefore, it is impossible to talk about car building without starting capital of 3 billion yuan in the initial stage. If there is no capital of more than 10 billion yuan, it is difficult for the automobile enterprises to enter into a sound operation. Therefore, the financing ability is the fundamental to the survival of automobile enterprises.
he Xiaopeng once talked about it several times. In the past, he thought that 10 billion yuan was too exaggerated to see others make cars. Now he jumped in and realized that 20 billion yuan was not enough. He Xiaopeng said this sentence, naturally there are many powerful shareholders behind the support.
according to the prospectus, the founder he Xiaopeng is the largest shareholder of Xiaopeng automobile, holding 31.6% of the shares, and the management including he Xiaopeng holds 40.9% of the shares; the second largest shareholder is Alibaba group, which holds 14.4%. By the end of the second quarter of 2020, the total amount of cash assets on the account of Xiaopeng automobile was 2118.3 billion.
in addition, Xiaopeng automobile has successfully completed the C + round financing of US $900 million in recent two months, with investors including Alibaba, coatue, ASPEX, red shirt and Hillhead. In addition to abundant cash on the account, Xiaopeng has also experienced about 11 rounds of financing before IPO. Alibaba and IDG have participated in multiple rounds of financing of Xiaopeng automobile. Before IPO, Xiaopeng auto is expected to hold more than 8.5 billion yuan of cash assets.
after Xiaopeng automobile announced its pricing range, many investors, including existing shareholders, expressed interest in the subscription. At least US $500 million of shares have been offered, including at least $200 million for Alibaba, at least $100 million for coatue, at least $50 million for Qatar Investment Authority and at least $50 million for Xiaomi. In addition, according to Xiaopeng’s prospectus, primecap, an existing shareholder of Tesla, intends to subscribe for $100 million.
the support of new and old shareholders with real gold and silver has shown the initial recognition of Xiaopeng automobile in the capital market. This is also the result of Xiaopeng’s insistence on independent research and development.
according to the IPO prospectus of Xiaopeng automobile, 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 expenses, which account for nearly 90% of the company’s total revenue, provide support for continuous technology research and development.
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.
Xiaopeng automobile also said in the prospectus that in the future, the company will continue to invest funds to improve technology. Xiaopeng P7 was launched in April 2020, equipped with self-developed automatic driving software xpilot and NVIDIA Xavier autopilot chip. It is the world’s first car equipped with NVIDIA Xavier automatic driving 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.
at present, Xiaopeng automobile has self built factory, production qualification and completely independent operation, and has developed two intelligent EV platforms at the same time. Based on this, two models of SUV and car have been developed.
in terms of electronic and electrical structure, Xiaopeng has built a centralized electronic and electrical architecture similar to Tesla based on pure electric SEPA platform. SEPA platform is modular and lightweight. This platform can expand a variety of models, wheelbases or sizes, and each platform can effectively design and manufacture various models, which is expected to reduce the cost of raw materials and R & D expenses.
in the prospectus, Xiaopeng automobile also disclosed the “strategic plan” of the third vehicle, which plans to launch the third product in 2021. Based on David platform, the model can share about 70% of the components with G3, and it is expected that the development cost of the third model will be significantly reduced.
according to the official data of Xiaopeng, after the large-scale delivery started on June 27, Xiaopeng P7 finally won the delivery performance of 1641 units in July, with the delivery volume increasing by 427.7% month on month. This means that Xiaopeng’s second model, the first new energy car, has been on the right track.
no matter the positioning strategy of existing models, or by improving the production capacity to fulfill the delivery commitment, and by introducing new models to speed up the iterative updating of products, Xiaopeng automobile continues to expand its market share in the intelligent vehicle market.
as the listing schedule is approaching, Xiaopeng automobile will make greater investment in its independent R & D capability, so as to further enhance its position in the smart car market and strive to go further in the fierce market competition. Didi Qingju bicycle has entered 150 cities