AutoBeta(AutoBeta.net)05/20 Report--

On May 20, NIO listed on the main board of the Stock Exchange of Singapore Limited (SGX-ST) under the ticker "NIO" with an opening price of US $16.90. By the end of the day, Xilai (SGX) closed up% to US dollars, with a total market capitalization of US $100 million.

According to the data, NIO was founded on November 25, 2014, initiated by Li Bin, founder of the change car. On September 12, 2018, Xilai listed on the New York Stock Exchange in the United States, becoming the first Chinese new power car company to be listed in the United States. On March 10, 2022, NIO listed on the Stock Exchange of China. At this point, three new power car companies, Wei Xiaoli, gathered in Hong Kong. On May 20, 2022, NIO was listed on the Singapore Stock Exchange, becoming the first Chinese company to be listed in the United States, Hong Kong and Singapore.

Whether it is the Stock Exchange or the Singapore Exchange, NIO adopts the method of introducing listing. The so-called "introduction to listing" is a way for issued securities to apply for listing. No new shares are issued, but shareholders of the company apply for listing and trading of their old shares and do not involve financing. In addition, 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.

Why is NIO in such a hurry to list in multiple markets? On May 4th, Xilai was added to the proposed delisting list by the United States SEC (Securities and Exchange Commission) because, according to HFCAA and its implementation rules, SEC appointed an auditor that could not be fully inspected or investigated by the Accounting Oversight Board of Public companies to issue an audit opinion on its 2021 financial statements. According to the legal documents of SEC, companies listed as "determined pre-extracted cards" are required to submit the documents required by SEC within three years. If the companies in the "confirm pre-extracted card" do not submit documents or do not meet the SEC requirements, they will face delisting. To some extent, NIO's inclusion in the "pre-delisted" list by the SEC of the United States does not mean delisting, but it still worries many investors in the face of regulatory pressure, so Wei to speed up listing on the Stock Exchange and Singapore Exchange is essentially to provide investors with a more robust way of investment.

However, in a deeper sense, if the listing is not for financing, it is "selling dog meat by hanging a sheep's head". Statistics show that Singapore is one of the most dynamic international financial centres on a par with New York, London and Hong Kong, with total assets under management estimated to exceed S $2.4 trillion. In September 2021, the 30th Global Financial centres Index (GFCI) released that New York ranked first in the GFCI index, London ranked second, and Hong Kong and Singapore ranked third and fourth. At the same time, Singapore is the third largest foreign exchange trading centre in the world, the largest foreign exchange clearing centre in Asia, the second largest offshore RMB clearing centre and an important wealth management centre in Asia, bringing together hundreds of local and multinational financial institutions. According to the relevant rules, Xilai will not be able to raise funds until at least six months later when it enters the SGX by introducing the listing. Therefore, at present, Xilai is listed on the Singapore Exchange in order to broaden financing channels and increase its exposure in capital markets such as Asia, Europe and the United States.

At the same time, the bet with Hefei is gradually approaching. In 2019, under the influence of huge losses, spontaneous combustion recalls, layoffs and executive departures, the stock 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 Wei coming at one time, Hefei offered an olive branch to Wei. On April 29, 2020, NIO reached a strategic cooperation with Hefei state assets. Hefei state assets invested 7 billion yuan in China and 4.26 billion yuan in NIO, which held 24.1% and 75.9% shares in China, respectively.

NIO was saved, and Hefei became famous for it. However, according to media reports, Hefei did not invest unconditionally. It signed an agreement with NIO requiring NIO China to submit IPO within 48 months after receiving the investment and to complete the listing within 60 months; besides IPO, the performance commitments to be completed are: revenue of 14.8 billion yuan in 2020 (3 models on the market), revenue of 120 billion yuan in 2024 (6-8 models on the market), total revenue of 420 billion yuan from 2020 to 2025, and total tax revenue of 7.8 billion yuan.

Under this pressure, NIO has accelerated in terms of products, financing and so on. Take the product aspect as an example, at present, the models listed and planned to be released by Xilai include six models, including ES8, ES6, ES6, ET7, ET5 and ES7, which is the new power brand with the most product planning at present. At the same time, NIO planned products and system-wide services will be officially landed in Germany, the Netherlands, Sweden and Denmark.

At present, the survival crisis of NIO has been alleviated, but it is not a long-term solution to rely on financing for blood transfusion. how to achieve a break-even by improving the competitiveness of its own products will be the key to its continued survival and development.

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