AutoBeta(AutoBeta.net)05/06 Report--

On May 6, Xilai issued an announcement announcing that it had obtained a conditional listing qualification letter from the Singapore Stock Exchange for a secondary listing on the main board and would issue listing documents this month. The announcement shows that Ulai will introduce the listing without involving the issuance of new shares and fund-raising, and that the Class A shares listed on the New York Stock Exchange can be fully converted into American depositary shares listed on the New York Stock Exchange.

It can be noted that both the Hong Kong Stock Exchange and the Singapore Exchange are listed by introduction, indicating that there are problems with NIO's user trust. So what is the introduction and listing? To put it simply, as a way to apply for listing of issued securities, there is no need to issue new shares at the time of listing, but only that the shareholders of the enterprise apply for listing and trading of their old shares, which, to a certain extent, does not involve financing.

If nothing happens, NIO will become the first new power company to be listed in the United States, Hong Kong and Singapore. As we all know, NIO listed on the New York Stock Exchange in September 2018 and became the first Chinese new power car company to be listed in the United States. generally speaking, an application for secondary listing in the United States half a year later can be exempted, and its listing review is easier than dual listing. In fact, NIO submitted its application for listing on the Hong Kong Stock Exchange as early as March 2021, but failed to list successfully.

It is understood that after submitting its listing application to the HKEx, Xilai received inquiries from the HKEx about its shareholding structure, including the user trust fund established in 2019, and various sources pointed out that the trust fund hindered the listing process. According to public information, Li Bin, the founder of Lvlai, transferred 50 million shares (including 189253 Class A shares and 49810747 Class C shares) to set up a user trust on January 24, 2019. According to the articles of association, trust assets are initially 50 million shares, and no more than 5% of the trust assets can be sold in each financial year, while the sale of more than 50 million shares is unrestricted. At present, NIO has not made a profit, and the user trust does not receive a dividend, so the income can only come from the sale of shares. At the current price of $20.94 per share, the stock currently has a market capitalization of about $1.047 billion. Industry insiders point out that whether the user trust shares are sold, when, and how much, and what is its impact on Li Bin's voting rights, all affect the secondary listing of Lailai.

It should be noted that the introduction of the price on the day of listing does not take the issue price as a reference, but is entirely determined by the trading game between the buyer and the seller, and because the shares of the controlling shareholders have a six-month lock-up period and the company can only refinance after six months of listing, the stock may be in short supply, low trading volume and high stock price volatility at the initial stage of listing. Previously, Xilai was listed on the Hong Kong Stock Exchange on March 10, with an opening price of HK $160 per share, hitting a high of HK $169.5 per share and a market capitalization of more than HK $280 billion at one point. As of today's close, Hong Kong shares fell 120.7 Hong Kong dollars per share, with a total market capitalization of 204.3 billion Hong Kong dollars.

Of course, the main reason for the continued decline in Xilai's share price is market expectations, superimposed sanctions on it by the US capital market. On May 4, the Securities and Exchange Regulatory Commission (SEC) added 88 Chinese stocks to the "pre-delimited" list, including Xiaopeng Motor and NIO, while ideal Automobile was included in the "pre-delimited list" as early as April.

According to the auto industry concern statistics, this is the sixth time that the SEC of the United States has issued a list of "pre-picked cards", and it is also the largest in number. So far, a total of 128 enterprises have been added to the "pre-drawn list", among which the new car-building forces listed in the United States, such as NIO, Xiaopeng and ideal, are not immune.

Affected by the news, the stock prices of NIO, Xiaopeng and ideal fell sharply. By the end of the day, NIO was down 15.15% at $15.38, with a total market capitalization of $25.4 billion. Xiaopeng Motor is 13.51 to 23.11 US dollars, with a total market capitalization of 19.8 billion US dollars. Ideal car tumbled 8.14% to $21.67, with a total market capitalization of $22.4 billion.

According to the data, NIO was founded on November 25, 2014, initiated by Li Bin, founder of the change car. On December 16, 2017, the ES8, the first production car of Xilai, was officially launched. In September 2018, Ulai was listed on the New York Stock Exchange in the United States. On December 15, 2018, the second production car, ES6, was officially put on the market. In 2019, NIO was facing a moment of life and death. due to huge losses, coupled with the influence of urgent funds, spontaneous combustion of products, layoffs and layoffs, and the departure of senior executives, the share price of Lulai plummeted to as low as $1.19 per share, close to the Nasdaq delisting red line of $1. In order to survive, NIO discussed financing with Beijing Yizhuang Guotou and the government of Wuxing District, Huzhou, Zhejiang, but all ended in failure.

Under the background that NIO is facing life and death, and the market was not optimistic about NIO for a time, Hefei threw an olive branch to NIO. On February 25, 2020, NIO announced that it signed a framework agreement with the Hefei municipal government for the establishment of its China headquarters in Hefei, and launched the EC6 mass production project, and the Hefei municipal government also invested 10 billion yuan in it. Catch up with the tuyere of new energy vehicles, coupled with the financial support of the Hefei municipal government, the financial problem has been alleviated. At present, five models of ES8, ES6, EC6, ET7 and ET5 have been released by Xilai. In addition, the new model ES7 will be unveiled at the Beijing Auto Show, positioning the big five-seat pure electric SUV, between ES6 and ES8, based on the Xilai NT2.0 platform, with the same level of intelligence as the ET5 and ET7 cars, and will be delivered within this year.

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