AutoBeta(AutoBeta.net)05/30 Report--

Although the delivery volume of Xilai is far ahead of other new domestic car-building forces, its profitability is worrying.

At the earnings conference call for the first quarter of 2020, NIO CEO Li Bin said that from the perspective of NIO China, there is the possibility of listing in China's capital market, and the company makes a comprehensive decision according to all aspects of the follow-up situation in China's capital market.

With regard to the impact of Volkswagen's acquisition of a 50% stake in Jianghuai on NIO, Li Bin said on a conference call that the cooperation between NIO and Jianghuai is a win-win situation, and the emergence of more new energy vehicle manufacturers in Hefei, Anhui Province is a positive thing. Even if Volkswagen reaches a strategic cooperation with Jianghuai, the impact on Fulai is also positive.

However, this did not allay investors' disappointment with NIO's performance in the first quarter, with shares down 8.15% to $3.83 at the end of the day. According to the financial report, the total revenue of Lulai Motor fell 15.9% to 1.37 billion yuan in the first quarter of 2020 compared with the same period last year, while the net loss fell 35.5% to 1.692 billion yuan. While the operating income of Xilai Motor hit a record low last quarter, the net loss also hit an all-time low, which is regarded by the industry as the worst quarterly results since its listing.

In terms of delivery volume, 3838 vehicles, including 3643 ES6 and 195 ES8, were delivered in the first quarter of 2020, down 3.8 per cent from a year earlier. From the point of view of profit margin, the profit margin of sales of Lulai vehicles in the first quarter was-7.4%. According to ES6, the cheapest entry model of NIO, its starting price was 358000 yuan, with an average loss of 26000 yuan for every car sold.

For NIO, how to live is the most important topic at present, and the fundamental thing to live is money.

Yao remembers that in September last year, Li Bin said publicly, "NIO is only a 4-year-old child. You can't expect a 4-year-old child to support your family. Compared with Tesla's 15-year-old profit, it won't take more than 10 years." But for many investors, 10 years simply cannot afford to wait, so after a huge loss in the second quarter of last year, it was difficult for Xilai to raise capital. Beijing Yizhuang Guotou and Zhejiang Huzhou Wuxing District projects ended in failure. Hillhouse Capital even emptied its shares in Xilai.

After many twists and turns, financing was rejected, and finally Hefei pulled a hand.

On February 25th, NIO announced the signing of a cooperation framework agreement with Hefei City. The NIO China headquarters project will be located in Hefei, and the Hefei government will invest more than 10 billion yuan in the project through designated investment companies and joint market-oriented investors. The people's government of Hefei also said on its official Weibo that it plans to build Kailai into a leading enterprise with a market capitalization of 100 billion yuan within five years, so that it can drive the development of new energy vehicle industry in Hefei and even Anhui.

On April 29th, NIO signed a final agreement on investing in China with three strategic investors, reached an agreement with Hefei Economic and technological Development Zone on the arrival of China headquarters, and received a strategic investment of 7 billion yuan. NIO will inject into China the legal body of NIO (Anhui) Holdings Co., Ltd., including vehicle research and development, supply chain and manufacturing, sales and services, energy services and other core businesses and related assets.

This is why Li Bin revealed on the conference call that "NIO China may be listed in China", and the reason why he chose to let Wei come to China to seek listing in the Chinese market is also related to the current situation.

Although the financing of 8 billion yuan was obtained at the beginning of 2020 to prevent the capital chain from breaking, according to the loss of 10 billion yuan in 2019, these financing can only last one year.

For Xilai, this year is a critical year, but also a special year, the expansion of product range and car sales profit is the top priority of this year. According to NIO, more than 10,000 vehicles will be delivered in the second quarter of this year, setting a record for quarterly delivery, while raising the vehicle gross profit margin in the second quarter to 5%. But at present, the competition in the new energy vehicle market is fierce. The price of Tesla's domestic Model 3 has been less than 300000 yuan. The P7 launched by Xiaopeng Motor has also been well received by the market, as well as BYD, ideal, SAIC and other automobile manufacturers.

The decline of subsidies for new energy vehicles in 2019, coupled with the discount and clearance of fuel vehicles from the fifth to the sixth year, has kept the new energy vehicle industry in the doldrums. In 2020, the market is in trouble again because of the epidemic. In the first quarter of 2020, NIO continued to lose money, but due to the availability of financing, NIO has made a positive development. Data show that 3155 vehicles were delivered in April this year, and for now, the delivery target of 10, 000 vehicles in the second quarter is expected to be completed.

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