AutoBeta(AutoBeta.net)03/06 Report--

On March 5, Xilai Motor announced the completion of another $235 million convertible bond financing project, invested by several non-related party Asian investment funds. The convertible bond will mature on March 5, 2021. Before the maturity of the bill, the holder of the bill has the right to convert all or part of the principal of the bill into Class A common shares.

So far, Xilai Motor has completed a total of 435 million US dollars in convertible bond financing projects. Prior to this, Lai Motor announced on February 6 and February 14 respectively that it had completed US $100 million in convertible bond financing and a cumulative total of US $200 million in convertible bond financing.

The problem of capital is still the current problem for the car company. According to the financial report, the operating income of Lulai Motor in the third quarter was 1.8368 billion yuan, up 25.0% from the same period last year, while the net loss was 2.521 billion yuan, down 10.3% from the same period last year. Although its revenue increased in the third quarter, it is still losing money, and it said its cash flow was insufficient to support the working capital needed for the next 12 months as of Sept. 30.

In order to ease the pressure brought by funds, Lulai Motor is frantically looking for money. After the clearance of Hillhouse Capital's shares in NIO Automobile, and after the rumors of Yizhuang Guotou, GAC GROUP and Geely were fruitless, NIO signed a cooperation framework agreement with the government of Hefei, and the headquarters of NIO will be located in Hefei. at the same time, the Hefei municipal government will invest more than 10 billion yuan in NIO Motors, and the financial pressure on NIO Motor is barely relieved.

NIO announced that it will start mass production of EC6 models in Jianghuai NIO factory, invest 1 billion yuan in planning and construction of headquarters and R & D base, and 1.5 billion yuan in the second production base. Qin Lihong, co-founder and president of NIO, said that the two financing projects in February were mainly to supplement the company's short-term cash flow and help the company tide over the difficulties in the short term.

In addition, after it was reported that the company could not pay a salary, the company announced a plan that employees could voluntarily exchange their "thirteen salaries" into restricted shares, and employees could choose to take wages or shares in the company within the corresponding amount.

Whether Xilai can be recognized by the market and whether it can alleviate the pressure of cash flow depends on the performance of car sales. Last year, the cumulative sales of Xilai reached 20565, ranking first among the new car-building forces in the country. In January, Xilai's car sales fell 11.5 per cent from a year earlier to 1598. NIO said that due to the impact of the traditional Spring Festival holiday, the effective working day in January was six days less than in previous years, and sales were expected to continue to decline in the first quarter of this year due to the epidemic.

Li Bin has said that both the completed financing projects and the investment rumors rumored by the industry highlight the value that more and more people see in NIO.

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