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CEO of Xilai Automobile responds to tens of billions of financing and losses

2024-09-19 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)06/13 Report--

On June 12, after losing 2.6 billion yuan in the first quarter of 2019, the agreement on 10 billion financing with Beijing Yizhuang International Investment and Development Co., Ltd. attracted the attention of the industry. Li Bin is doing this financing at a time when the company is extremely difficult. Li Bin said that this is a means of financing for the company. Xilai Automobile has only been established for four years, and you cannot ask a 4-year-old to support your family.

In fact, it has been controversial since its establishment. The relevant policy on new energy vehicles issued by the National Development and Reform Commission is that Lailai has also taken corresponding action, and the intelligent driving assistance system has also been officially launched today. For the current Azure Automobile, as a talent that has just been established for four years, it needs investors and external funds to maintain the development of the company, including product research and development, customer service construction, as well as product innovation and promotion.

Previously, Azure released its financial report for the first quarter of 2019, in which the number of ES8 delivered in the first quarter was 3989, sales decreased by 50% month-on-month, total revenue was 1.63 billion yuan, month-on-month decrease of 52%, net loss of 2.62 billion yuan, month-on-month decrease of 25%, year-on-year increase of 71%. From this point of view, under the downward trend of new energy subsidy policy, NIO will face more severe challenges, especially Tesla is about to build a large number of factories in China, and the company still has a long way to go to make a profit. In the face of the whole depressed environment of the car market, NIO needs its own unique advantages in order to go further in the market.

On June 12, Xilai Motor received 10 billion yuan of investment from Beijing Yizhuang International Investment and Development Co., Ltd. (referred to as Yizhuang Guotou) and signed a framework agreement. It is mainly used to build a new entity "NIO China" in Beijing Economic and technological Development Zone, and Yizhuang Guotou can obtain the non-controlling shareholder rights and interests of "NIO China". At that time, the new factory will produce its second-generation platform models. It is reported that after the funds are in place, the cumulative capital obtained by NIO Motor will reach 33.8 billion yuan.

Not only that, but also in the same day, NIO also announced that its second production model, ES6, was officially off the line. According to previous plans, the first commemorative version of the first 6000 ES6 will be delivered next month, which is expected to be delivered on time. As the second SUV product of NIO, the position of the car is lower than that of ES8, and it was officially put on the market at the end of last year. Before the subsidy, the price was 358000 yuan-548000 yuan. According to the NEDC standard, the mileage can reach 510km, which is a great improvement compared to ES8.

I have to say that it has experienced ups and downs since May 28, which has a far-reaching impact on the future development. However, this financing of 10 billion yuan is really too timely for NIO, which can greatly enhance the brand competitiveness of NIO and provide a weight for its development. Another problem that NIO needs to face squarely is that the sluggish demand that may be brought about by the decline of new energy subsidies and the establishment of a factory by Tesla in China may have a significant impact on the development of NIO, so everything in the future is unknown.

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