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Following the success of car-building New Power Zero Auto in the Hong Kong Stock Exchange IPO, another new power brand Weima Automobile also accelerated the delivery of IPO, but Weima Motors' public prospectus caused a lot of controversy on the Internet.

According to Weima's prospectus, Weima's losses continued to increase from 2019 to 2021, including a huge loss of 8.2 billion yuan in 2021. Under the background of Weima's huge losses, the sky-high salary of Shen Hui, founder, chairman and CEO of Weima Automobile has also attracted much attention. Data show that Shen Hui's salary totaled 1.26 billion yuan in 2021, accounting for nearly 30% of Weimar's annual income. In addition, the administrative cost of Weima Automobile in 2021 was 2.7 billion yuan, an increase of 57% over the same period last year. Weima Automobile said: "it is mainly due to a substantial increase in share-based payment expenses caused by the granting of share awards to some management members." and share-based payments to domestic investors in the C+ series. " Specifically, Weimar paid 1.75 billion yuan to key management in 2021, of which Shen Hui accounted for 72% of the total.

By contrast, Zero, a new car-building power, lost 2.85 billion yuan in 2021, but the total annual salary of Zhu Jiangming, the brand's founder, chairman, executive director and chief executive, was only 9.546 million yuan, accounting for 9.9 percent of the total compensation of key managers. Li Xiang and he Xiaopeng, CEO of ideal Automobile and Xiaopeng Automobile, the other two new power car brands, have a total salary of 1.504 million yuan and 1.352 million yuan respectively in 2021, which means that Shen Hui's total salary in 2021 is nearly 800 times that of ideal car CEO Li Xiang. However, at present, Shen Hui's annual salary of 1.26 billion yuan is composed of ordinary salary and restricted shares, of which the actual salary is only 2.01 million yuan, and the rest is distributed in the form of restricted shares. Shen Hui can only take this part of the money into the bag after the listing of Weima Motors, that is to say, if the listing of Weima Motor is not satisfactory, Shen Hui may not get this part of the money.

According to the concern of the automobile industry, as early as September 2020, Weima Motor began to prepare to enter the "first share of Science and Technology Innovation Board's New Power". On January 29th, 2021, the Shanghai Bureau of Supervision issued an announcement that Weimar Wisdom Travel Technology (Shanghai) Co., Ltd. already had the conditions for tutoring and acceptance and Science and Technology Innovation Board listing application, but it was not long before Weima Motor was exposed to suspend its application in Science and Technology Innovation Board's IPO. The reason is that Weimar's listed materials found a lot of problems in the review. In response, Shen Hui responded: "rumors", while Weimar responded: "the listing work is carried out in an orderly manner, and the time is uncertain." On June 1 this year, Weimar formally submitted its application for listing of Hong Kong shares, with Haitong International, China Bank International and Bank of China International as sponsors.

Data show that Weimar Motor was founded in 2015 by Shen Hui, former vice president of Geely Holdings Group, and is headquartered in Shanghai. Before founding Weimar, Shen Hui successively held management positions in core auto parts companies and vehicle companies such as BergWarner, Fiat, Volvo and Geely, so compared with Li Bin, he Xiaopeng and Li Xiang, Shen Hui has accumulated a lot of experience in automobile manufacturing. According to the equity statement of Weima Automobile Company, Shen Hui, Wang Lei and his wife currently hold a total of 30.82%. Since its establishment, Weimar has gone through 11 times of financing, with a total financing of more than 35 billion yuan.

In terms of products, up to now, Weimar has a total of four models: EX5, W6, E.5 and M7, of which EX5 is the first model under Weima Automobile, which was delivered on September 28th, 2018, taking the lead in breaking PPT. Weima EX5 positioning compact pure electric SUV, the price range is 14.68-198800 yuan, compared with NIO, ideal and other car companies, Weima car's first model positioning is relatively low-end, lower product price means better access to the market, but in fact, the current sales volume of Weima has obviously lagged behind Weimar and ideal. For comparison, the price of ES8, the first model of Ulai, is 448000 yuan, while the ideal ONE price of the first model of ideal car is 328000 yuan.

Data show that in 2019, Weimar delivered 16900 vehicles, Ulai delivered 20600 vehicles, and Xiaopeng delivered 16700 vehicles, ranking second in the new power car company, but the good times did not last long, and this excellent performance lasted only one year; in 2020, Weimar delivered 22500 vehicles, Ulai delivered 43700 vehicles, Xiaopeng delivered 27000 vehicles, ideal delivery 32600 vehicles, Weima fell out of the top three. By 2021, Xiaopeng will deliver 98200 vehicles, NIO will deliver 91400, ideal delivery will be 90500, Nahu will deliver 69700, while Weimar will deliver only 44200, which is a huge gap with Wei Xiaoli. After entering 2022, Weima continues to lag behind Wei Xiaoli. In the first half of this year, Weima delivered a total of 21700 vehicles, while those of Xiaopeng, Nezha, ideal and NIO were 69000, 63100, 60400 and 50800 respectively.

According to the prospectus, Weima's revenue from 2019 to 2021 was 1.7621 billion yuan, 2.6717 billion yuan and 4.7425 billion yuan respectively. The net losses are 4.145 billion yuan, 5.084 billion yuan and 8.206 billion yuan respectively. According to this calculation, the cumulative loss of Weima Automobile over the past three years is as high as 17.435 billion yuan. The net losses of NIO, Xiaopeng and ideal, which are also new forces in car building, are 4.016 billion yuan, 4.863 billion yuan and 322 million yuan respectively in 2021. According to the data, although these new car-making forces are all in a state of loss, the sales volume of Weima is only half of that of NIO and Xiaopeng. The loss is twice as high. In early 2020, Shen Hui said: "We will not disclose how much money we burn, because we are definitely not in the top two, we are relatively low." At present, we are very confident that we will become the first new car manufacturer in the world to make a real profit for the whole year. We hope to be ahead of Tesla and firmly believe that we can do so. " In addition, after last year's M7 press conference, Shen Hui said in an interview: "the new car-building forces are running in the last kilometer of the marathon, internal competition delivery volume is meaningless, should be compared with BYD, GM, Honda." grab their share. With the arrival of M7, Weima is confident that it will return to the first camp of new car-building forces in 2022. " M7 is the first intelligent electric car of Weimar, which was officially launched on October 22, 2021 and locates medium and large pure electric vehicles. According to the plan, M7 will be officially launched in the fourth quarter of this year.

However, judging from the current development of Weima Automobile, Weima not only did not get ahead of Tesla, but was surpassed by second-tier new power brands such as Nezha and Zero, while M7 did not appear on the market until the fourth quarter. Weima wants to rely on M7 to return to the first camp of new car-building forces in 2022, which is extremely difficult.

Data show that since 2017, Weimar has lost more than 10 billion yuan, and listing has become the only way for Weima, which continues to lose money, to continue to go. As for the follow-up of Weima's listing, it is not clear.

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