Weilai, who made good grades, finally found the life-saving money.
Editor’s note: This article is from WeChat public account “Car stuff” (ID : Chedongxi), author Juice.
Nine o’clock last night, Weilai Automobile announced on its official website that it has signed a final transaction document with a non-affiliated Asian investment fund, according to which Weilai Automobile will issue and sell the total principal through private placement as Convertible notes of 70 million U.S. dollars (about 488 million yuan) are expected to be traded around February 10, 2020.
In addition, in January 2020, Weilai Automobile issued another US $ 30 million (approximately RMB 209 million) convertible notes private placement to another non-affiliated Asian investment fund under similar conditions.
The total principal amount of the convertible notes issued by Weilai on these two occasions is approximately USD 100 million (about RMB 697 million). It is reported that the interest rate of the bonds issued by Weilai to the buyer is zero and will expire on February 4, 2021.
When the convertible bond matures on February 4, next year, the creditor can ask Weilai to repay the principal and interest (this is a zero interest rate).
Or convert to Weilai’s stock at the agreed price of USD 3.07 (about RMB 21.4) per share. If the stock price rises, you can make more money.
▲ Financing announcement from Weilai Automobile’s official website
This money is no different than giving carbon in the snow for the current Weilai Automobile. However, the money cannot fully meet the demand, and Weilai Automobile is also currently conducting a new financing project. Weilai Automobile’s announcement shows that Weilai Automobile is currently working on several other financing projects, and the results are still uncertain.
Weilai Automobile released its third-quarter financial report at 9pm on December 30, 2019. The financial report shows that Weilai Automobile’s total revenue in the third quarter of 2019 was 1.84 billion yuan, an increase of 21.8% from the previous month. %, A year-on-year increase of 25%. Although the loss has declined, the loss is still as high as 2.5 billion, which is cruel in reality.
Although Weilai Automobile delivered 4,799 electric vehicles in the third quarter of 2019, a 35% increase month-on-month, vehicle sales revenue was 1.77 billion yuan, a month-on-month increase of 22.5%, and a year-on-year increase of 21.5%, but it still could not bear WeiThe speed of burning money.
After receiving this money, Weilai will be able to reverse the current funding dilemma and continue to survive the dual effects of the cold winter of the auto market and the new coronavirus.
Weila has received US $ 100 million in funding, and other financing projects are underway.
Wei Lai ’s biggest problem is the lack of money. Since 2019, Wei Lai has repeatedly circulated financing scandals, but none has become a reality. But now Weilai finally finds money that can make it through the difficult times.
Nine o’clock last night, Weilai released the latest financing announcement on its official website. The announcement shows that Weilai has signed the final transaction document with a non-affiliated Asian investment fund, according to which Weilai Automobile will be issued through a private placement. And the sale of convertible notes with a total principal of US $ 70 million (about 488 million yuan), the two parties are expected to trade around February 10, 2020.
In addition, in January 2020, Weilai issued another 30 million US dollars (approximately 209 million yuan) of convertible notes to another non-affiliated Asian investment fund under similar conditions.
The total principal amount of the convertible notes issued by Weilai on these two occasions is approximately USD 100 million (about RMB 697 million). It is reported that the interest rate of the bonds issued by Weilai to the buyer is zero and will expire on February 4, 2021.
▲ Financing announcement from Weilai’s official website
Although Weilai has found money that can save her life, it is not in the form of direct investment by investors, but convertible bond financing. So what is convertible bond financing?
An analyst told Che Xiong that convertible bond financing is when the two parties agree on the term of the convertible bond before signing the transaction. After maturity, the creditor can ask the other party to repay the principal and interest or convert the money into stock.
In other words, when the convertible bonds expire on February 4, next year, the creditor can ask Wei to pay the principal and interest (this is a zero interest rate).
Or convert to Weilai’s stock at the agreed price of USD 3.07 (about RMB 21.4) per share. If the stock price rises, you can make more money.
However, no matter how Weilai raises funds, Weilai can use this money to solve its urgent needs.
But the money ca n’t fully meet the demand. Weilai is currentlyNew financing project underway. Weilai’s announcement shows that Weilai is currently working on several other financing projects, and the results are still uncertain.
Weilai’s Q3 2019 net loss of 2.52 billion yuan, tight cash flow
Looking at Weilai ’s recent financial situation, you can see how important this money is to Weilai.
December 30, 2019, at 9 o’clock in the evening, the third-quarter financial report was released. The financial report shows that the total revenue of Weilai Automobile in the third quarter of 2019 was 1.84 billion yuan, a year-on-year increase of 21.8%, year-on-year. Up 25%.
▲ Weilai’s third quarter financial report data
But Weilai ’s net loss in the third quarter was 2.52 billion yuan. If equity incentive expenditures were excluded, the net loss was 2.45 billion yuan, which is very cruel in reality.
As of September 30, 2019, the total value of cash and cash equivalents of Weilai Automobile was 980 million yuan. Even after taking into account special cash and possible short-term investments, the balance on Weilai’s book was only 19.6. The total assets of Weilai Automobile are 16.84 billion yuan.
▲ Weilai cash situation
Rough calculation, if we take the net loss of 2.52 billion yuan in the third quarter of 2019 and the 23.3% decrease in losses as a reference, Weilai may lose 1.93 billion in the fourth quarter. The current book balance of Weilai Automobile is 1.96 billion yuan. After the fourth quarter of 2019, Weilai is likely to have no money.
The financing of US $ 100 million (about RMB 697 million) will solve Weilai’s urgent needs. But if you want to survive better, Weilai still needs to find more financing and continue to increase its sales.
In fact, Weilai also has certain advantages. In terms of sales volume, in addition to the July ES8 spontaneous combustion recall,The overall sales of Weilai are on an upward trend. According to Weilai’s official data, Weilai delivered a total of 20,565 vehicles in 2019, an increase of 81% year-on-year, which is a welcome increase.
▲ Delivery of Weilai Automobile in 2019
According to the retail data of the China Automotive Research and Development Institute’s data center, Weilai ES8 sold a total of 9,259 units in 2019, ranking sixth among the seven large SUVs in China (including fuel vehicles), and its sales are basically the same as Tesla Model X. Land Rover found that sales of large fuel SUVs such as Lexus LX, BMW X7, Cadillac XT6 were also lower than Weilai.
▲ Sales ranking of large luxury SUVs
But it should be noted that the Weilai ES8 is almost the cheapest model on this list, so this comparison is not strictly fair. In contrast, the sales ranking of mid-size SUVs is relatively fair.
The retail data of the China Automotive Research and Development Center shows that the ES6 has sold 11,490 units in 2019, ranking 12th in the sales ranking of mainstream mid-size SUVs, Land Rover Stars, Aurora, and Acura RDX and Jaguar F-PACE. Sales of other products are also lower than Weilai.
▲ Ranking of mainstream luxury mid-size SUVs
You can see that in both rankings, Weilai is the only independent brand. In fact, even with Mercedes EQC, Audi e-Compared with tron and other models, Weilai is currently in an advantageous position in the luxury pure electric SUV segment.
▲ Luxury brand pure electric SUV sales ranking
Therefore, although Weilai is very difficult at present, Weilai still hopes to do a better job as long as the time passes.
Concluding remark: 100 million US dollars can solve the urgent need, if you want to survive, you must rely on yourself
It’s no secret that Weilai is very short of money. Now the whole industry understands this. The US $ 100 million (about RMB 697 million) financing will help Wei Lai to overcome the current difficulties, but if Wei Lai wants to survive better, this money is far from enough.
Wei Lai also understands this very well. Wei Lai is currently working on several other financing projects and is also trying to solve its existing problems.
The ES6 launched by Weilai in 2019 has brought a lot of sales to Weilai and also promoted the growth of Weilai’s sales. At the end of the year, Weilai also launched a new model EC6. At the launch site, Weilai said that it was waiting to be rigid with Model Y. Li Bin revealed in the conference call in the third quarter financial report that the new model has already received a large number of orders. (Disclosed), will become the next best-selling model of Weilai Automobile.
In addition, Weilai is still cutting unnecessary expenses. In 2019, Weilai has significantly reduced its sales, management and R & D expenses. At the same time, an affiliate marketing model such as NIO Space has also been opened, saving a lot of costs.
In general, although Weilai has solved the urgent needs, Weilai is still burning money very quickly. Weilai still has to rely on herself if she wants a way out.
Looking at Weilai ’s recent financial situation, you can see how important this money is to Weilai.
December 30, 2019, at 9 o’clock in the evening, the third-quarter financial report was released. The financial report shows that the total revenue of Weilai Automobile in the third quarter of 2019 was 1.84 billion yuan, a year-on-year increase of 21.8%, year-on-year. Up 25%.
▲ Weilai’s third quarter financial report data
But Weilai ’s net loss in the third quarter was 2.52 billion yuan. If equity incentive expenditures were excluded, the net loss was 2.45 billion yuan, which is very cruel in reality.
As of September 30, 2019, the total value of cash and cash equivalents of Weilai Automobile was 980 million yuan. Even after taking into account special cash and possible short-term investments, the balance on Weilai’s book was only 19.6. The total assets of Weilai Automobile are 16.84 billion yuan.
▲ Weilai cash situation
Rough calculation, if we take the net loss of 2.52 billion yuan in the third quarter of 2019 and the 23.3% decrease in losses as a reference, Weilai may lose 1.93 billion in the fourth quarter. The current book balance of Weilai Automobile is 1.96 billion yuan. After the fourth quarter of 2019, Weilai is likely to have no money.
The financing of US $ 100 million (about RMB 697 million) will solve Weilai’s urgent needs. But if you want to survive better, Weilai still needs to find more financing and continue to increase its sales.
In fact, Weilai also has certain advantages. In terms of sales volume, in addition to the July ES8 spontaneous combustion recall,The overall sales of Weilai are on an upward trend. According to Weilai’s official data, Weilai delivered a total of 20,565 vehicles in 2019, an increase of 81% year-on-year, which is a welcome increase.
▲ Delivery of Weilai Automobile in 2019
According to the retail data of the China Automotive Research and Development Institute’s data center, Weilai ES8 sold a total of 9,259 units in 2019, ranking sixth among the seven large SUVs in China (including fuel vehicles), and its sales are basically the same as Tesla Model X. Land Rover found that sales of large fuel SUVs such as Lexus LX, BMW X7, Cadillac XT6 were also lower than Weilai.
▲ Sales ranking of large luxury SUVs
But it should be noted that the Weilai ES8 is almost the cheapest model on this list, so this comparison is not strictly fair. In contrast, the sales ranking of mid-size SUVs is relatively fair.
The retail data of the China Automotive Research and Development Center shows that the ES6 has sold 11,490 units in 2019, ranking 12th in the sales ranking of mainstream mid-size SUVs, Land Rover Stars, Aurora, and Acura RDX and Jaguar F-PACE. Sales of other products are also lower than Weilai.
▲ Ranking of mainstream luxury mid-size SUVs
You can see that in both rankings, Weilai is the only independent brand. In fact, even with Mercedes EQC, Audi e-Compared with tron and other models, Weilai is currently in an advantageous position in the luxury pure electric SUV segment.
▲ Luxury brand pure electric SUV sales ranking
Therefore, although Weilai is very difficult at present, Weilai still hopes to do a better job as long as the time passes.