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Xiaopeng Motor has been approved by the Hong Kong Stock Exchange to go public and plans to raise $2 billion (13 billion yuan), Bloomberg reported. In response to the market news, Xiaopeng responded to the media: official news shall prevail and will not comment.

In early March, media reported that Xiaopeng was working with Bank of America (Bank of America) and JP Morgan on listing plans, while ideal was working with Goldman Sachs and UBS, which are expected to complete their listings as early as the third quarter of this year, raising about $1 billion-$2 billion. It is also reported that Xiaopeng Motor is also considering listing on the Shanghai Stock Exchange's Kechuang board.

NIO, Xiaopeng and ideal are known as the "three swordsmen of car building". Led by NIO Motor, NIO Motor continued its sluggish development trend at the beginning of 2020, but with the financial support of the Hefei Municipal Government of Anhui Province, its funding problem was alleviated. Under the tuyere of continuous growth in sales and the capital market, the share price of NIO Automobile once soared, up more than 1400% this year. Since then, Xiaopeng Motor and ideal Automobile have been listed in the United States one after another. also under the tuyere of the capital market, the share prices of the two car brands have also soared, with Xiaopeng Motors rising more than 100 percent annually and ideal cars up more than 77 percent.

After entering 2021, NIO, Xiaopeng and ideal three companies repeatedly set new highs in product delivery, but the secondary market closed down collectively. As of June 22, Xilai Motor closed at US $44.1 per share, down 17.55% for the year and 29.67% from its peak. Ideal car closed at $28.93 per share, down 10.87% for the year and 34.19% from its peak. Xiaopeng Motor closed at US $39.99 per share, down 9.32% for the year and 43.38% from its peak.

According to Xiaopeng's financial report, revenue in the first quarter of 2021 was 2.951 billion yuan, and gross profit margin rose to 11.2% from 7.4% in the fourth quarter of last year. However, Xiaopeng is still in a state of loss, with a net loss of 790 million yuan in the first quarter. According to the financial report, Xiaopeng delivered a total of 13340 vehicles in the first quarter of this year, including 5366 G3 and 7974 P7.

It is worth mentioning that Xiaopeng included the income of XPILOT software for the first time in its car sales in the first quarter. According to he Xiaopeng, XPILOT software has brought 80 million yuan of revenue to Xiaopeng Motor, of which 50 million yuan is for 2020 and 30 million yuan for the first quarter of this year. Of these, the cumulative payment rate for XPILOT 3.0 is more than 20 per cent and reached about 25 per cent in March this year.

It is understood that the current full stack self-developed XPILOT3.0 consumers need to pay an extra 20, 000 yuan, and with the application of the next generation of XPILOT3.5 and XPILOT4.0, consumers may need to pay more for the software service. Although it is only 80 million yuan, Xiaopeng said that in the future, the realization of XPILOT software will become a continuous source of income and profit in addition to vehicle hardware sales.

In April this year, Xiaopeng brought its third production car, Xiaopeng P5, a compact electric sedan, which continues the design style of Xiaopeng P7 and is scheduled to be delivered in the fourth quarter of this year. In addition, the mid-term revamped Xiaopeng G3 will also be launched in July, or it will be named Xiaopeng G3i, the new car will be replaced with a family-oriented front face of X ROBOT FACE, and the newly designed penetrating headlights will be highly recognizable.

For the new forces of car building, capital is an important support for its follow-up product development and technological attack, and it is necessary to establish links with domestic capital markets and funds. It is worth mentioning that in addition to Xiaopeng Motor, Xilai Motor and ideal Motor also plan to list in Hong Kong this year to attract more investors and are discussing listing plans with several banks. The three car brands plan to sell at least 5 per cent of their shares, raising a total of $5 billion based on the market capitalisation of US stocks, according to sources. In response to the above news, NIO, Xiaopeng and ideal did not comment. However, ideal car CEO Li Xiang has responded to rumors of a "secondary listing" in the market: for car companies, the more money, the better. Ideal cars do not mind acquiring capital reserves in any way, including financing from the secondary market, bank loans and bond issuance.

Although the three companies have not given a clear response to the return to Hong Kong listing, the money-burning road of new car manufacturers has not stopped, and returning to Hong Kong for listing may ease their financial pressure. At present, it seems that the action of Xiaopeng car is faster than that of NIO and ideal.

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