AutoBeta(AutoBeta.net)02/07 Report--

Xilai Motor announced the completion of a cumulative $100m convertible bond financing project, which was bought by two Asian investment funds of $70 million and about $30 million respectively, both of which were "non-related parties".

According to sources, the bond issued by Ulai to the buyer has an interest rate of zero and will mature on February 4, 2021. After the maturity of the convertible bond, the buyer can ask Wei to repay the principal, or convert it into NIO stock at the agreed price of US $3.07 per share.

Due to the continued huge losses in operation, the hindrance of financing projects, and the slow progress of the 10 billion financing project previously reached with Beijing Yizhuang Investment, there is pressure on NIO funds, and "convertible bond financing" has become a popular way to obtain new funds. At the third-quarter earnings call at the end of last year, NIO said that $200 million of convertible bonds from Tencent and Li Bin had been nearly completed.

According to the NIO financial report, revenue in the second quarter of 2019 was 1.508 billion yuan, with a net loss of 3.285 billion yuan belonging to shareholders, while revenue in the third quarter was 1.837 billion yuan and a net loss of 2.451 billion yuan.

With the continuous storm in 2019, falling into a state of huge losses, it is no secret that there is a lack of money. The 100 million yuan convertible bond financing project can help NIO tide over the current difficulties briefly, but if it fails to achieve its own profits, external funds are necessary. NIO disclosed in the announcement that the company is currently carrying out several other financing projects, and the results at this stage are uncertain.

Li Bin, the former chairman, also said, "from the perspective of Ulai, the whole company has been actively raising funds recently, and many aspects are moving forward, including some departments that can operate independently, and independent financing is being promoted."

Li Bin also said that the start-up of Lai Motor needs external funds to support within a certain period of time, and only after a certain amount does it begin to have a gross profit margin. With the gross profit margin, there will be a process of continuous increase in gross profit margin, and losses will continue to shorten. This process is an objective law.

At the NIO Day press conference on the evening of December 28th, 2019, NIO announced plans for new cars and battery upgrades for 2020. The new ES8 and EC6 coupe SUV will be delivered in April and September 2020, respectively. In addition, with the launch of the 100kwh battery pack upgrade project, the NEDC mileage of ES8 has been increased to 580km to exceed 600km.

After the launch of domestic Tesla Model 3, the price advantage makes NIO feel more pressure, which will have an impact on the next sales volume. According to the data, Lailai delivered a total of 20565 units in 2019, of which 9132 were delivered by ES8 and 11433 by ES6.

In the face of the challenges brought by the epidemic, Qin Lihong, president of Lulai, said that in the short and medium term, the automobile industry and even the entire macro-economy will be greatly affected by the epidemic, and the cold winter of the car market will intensify, and the challenge will be even more difficult. this is even more serious for the new car-building forces that are still on the brink of life and death.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat