AutoBeta(AutoBeta.net)11/22 Report--

Today, according to a number of media reports, Weima CEO Shen Hui sent a letter to cancel the year-end bonus, and the internal letter was also exposed on the Internet.

It is believed that due to the impact of the COVID-19 epidemic, Weima Motor is facing great challenges in the supply chain, a sharp rise in raw material costs, untimely supply and other problems, seriously affecting the production and operation of Weima. In order to cope with the financial pressure, the company will reduce operating costs through a series of financial measures, management will take the lead to take the initiative to cut salaries by half, and at the same time streamline the overall operating expenses of the company to reduce operating costs. Specific measures: including M4 and above managers take the initiative to reduce salaries, pay 50% basic salary; other employees pay 70% basic salary; adjust the company's payday, cancel year-end bonuses and other bonuses, suspend car purchase subsidies, and so on. For the news, Weimar confirmed to the media that the internal letter was true.

It is worth noting that the news about the pay cut for Weima Automobile employees came out as early as the end of October. According to the 21st Century Economic report earlier, Weimar announced four wage optimization measures at an internal employee communication meeting in October. It said that since November, the salary distribution date of employees has been postponed from the 8th to the 25th due to payback and financial considerations; at the same time, executives above the deputy general manager will receive 50% monthly salary, and employees below M4 will receive 70% monthly salary; in addition, all car purchase subsidies as well as year-end bonuses, 13 salary and 14 salary will be suspended. In addition, Weima employees in Shanghai told the media: "it is true that since October this year, our employees' wages have been paid at a 30% discount, and the management salary has been paid at a 50% discount, and the year-end bonus and 13 and 14 salaries have been cancelled." In response to this news, Weimar said that recently, senior executives have taken the initiative to cut salaries and other measures, in order to actively achieve strategic goals such as reducing costs and increasing efficiency, and improving the profit structure, with a view to the steady development of the industry in the cold winter and continue to provide quality services to users.

According to relevant data: Weima Motor was founded in December 2015, is one of the earliest new forces to start delivery, was established in the same year as the ideal, one year later than NIO and Xiaopeng. However, unlike Wei Xiaoli, chairman Shen Hui worked in Fiat, Volvo and other car companies before establishing Weimar, and the former position was vice president of Geely Holdings Group, which can be said to have accumulated a lot of experience in the automotive field. In January 2018, Weima acquired Zhongshun Automobile holding Co., Ltd., and obtained the production qualification.

According to the Weima website, there are EX5-Z, E.5 and W6 models on sale at present. It is understood that the EX5-Z positioning compact pure electric SUV, the price range is 14.98-163800 yuan. Weima E.5 positioning medium-sized pure electric car, the price range is 18.01-190100 yuan. Weima W6 positioning medium-sized SUV, the price is 169800-259800 yuan. The highly anticipated M7 model was unveiled at the end of 2021, but has not yet been delivered. On when the M7 model will be delivered, according to Weimar employees to the media: "the M7 has been tested by extreme cold and high temperature, but due to the company's cash flow problems, delivery is very difficult this year and may be postponed. Wait for official notice."

It is not difficult to see that under the background of poor sales and the rising cost of new energy vehicles, Weima Motor is in an increasingly difficult situation. Had to go to Hong Kong to list and submitted the IPO prospectus to the Hong Kong Stock Exchange, but so far, the progress of the listing is still in the review stage. As of March this year, Weimar had only 3.678 billion yuan in cash and cash equivalents on hand, according to the prospectus. In addition, Weimar's gross profit margin has been negative in recent years. The three-year gross profit margin of Weima from 2019 to 2021 is-58.3%,-43.5% and-41.1%, respectively. The total revenue is 1.762 billion yuan, 2.671 billion yuan and 4.773 billion yuan respectively, and the adjusted net profit is-4.04 billion yuan,-4.225 billion yuan and-5.363 billion yuan respectively.

Gross margin has been negative, and external financing is also very important for Weimar. According to public information, as of December 31, 2021, from A turn to D-round, Weima has received four rounds of financing for 12 times, totaling more than 41 billion yuan. However, the huge amount of financing did not solve Weimar's plight. According to the prospectus, Weimar's total borrowing from 2019 to 2021 was 2.42 billion yuan, 6.41 billion yuan and 9.95 billion yuan respectively, with debts approaching 10 billion yuan.

As for the prospect of Weima, Wei Ma founder Shen Hui once said: "We will not disclose how much money we have burned, 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 recent years, with the increasing investment of traditional automobile giants, the competition in the new energy vehicle market will become more and more fierce. Whether Weimar can survive in the track of new energy vehicles is not optimistic at this stage. The decline of Weimar may have something to do with its positioning. At the beginning of its establishment, Shen Hui positioned Weima as a "Volkswagen of electric vehicles", focusing on the low-and middle-end market of 10-200000 yuan. For the middle and low end, it is more necessary to win with the volume of high sales and low gross profit, as long as the gross profit margin cannot become a regular one day, the pressure of survival will be increasing.

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