Deeply in financial crisis, how should a new car company choose?
In the third quarter, the financial report improved significantly, and the sales volume in the fourth quarter soared to 8,000 units … Wei Lai ’s signal to pass the dangerous period seems to be short of financing. On January 15, the news of “Guangzhou Automobile’s investment in Weilai’s 1 billion U.S. dollars” immediately caused Weilai to open up sharply and triggered a fuse. As a result, it suspended trading on the NYSE for about an hour and rose 17.15% before the suspension.
Wei Lai had to respond to the inquiry of the NYSE and issued an announcement saying that “cooperation with GAC is being explored and the discussion is still in its infancy, and no final agreement has been reached.”
The GAC Group ’s announcement on the morning of the 16th is clearer: The media report of “GAC Group plans to invest in Weilai Automobile’s US $ 1 billion” is not true. At present, the two parties have discussed Weilai ’s financing plan, but it is still in its early stages At this stage, no binding agreement was formed.
Guangzhou Automobile Group added that even if it participates in Weilai’s financing, it will also participate through the subsidiary to raise funds from its own funds. It is expected that the total amount of its own funds and funds raised will not exceed 150 million U.S. dollars. Tremendous influence.
The actual investment amount is not only far from the rumors. Among the target investment amount of 150 million US dollars, it is also composed of GAC’s own funds plus external fundraising. It is learned from several people close to the fundraising transaction that GAC ’s own capital will not exceed 20 million US dollars, and other funds are raised externally. IDG Capital has participated in the fundraising.
The people familiar with the matter disclosed that Weilai’s current financing plan is to issue convertible bonds in US stocks, and the potential lead investor is not GAC. Among GAC’s investment in Weilai, a part of the funds may help Weilai make up the investment in the joint venture of GAC Weilai.
“In the first round of funding, Weilai owed more than 100 million yuan, and the second round of funding Weilai no longer participated.” The person familiar with the matter said. On May 20 last year, GAC Group and Weilai Automobile announced the establishment of a joint venture, and the two parties plan to invest 1.28 billion yuan in the joint venture.
The heavy investment in R & D and services has allowed Wei to repeatedly face financial crisis since 2019. The third quarter financial report shows that Weilai holds cash and cash equivalents, short-term investments, etc.