Weimar submits a Hong Kong stock prospectus and is poised to respond to the "competition" in the capital market

On June 1, the official website of the Hong Kong Stock Exchange disclosed the prospectus of Weimar Holdings Co., Ltd.If the listing process goes smoothly, WM Motor is expected to become another new car-making force listed on the main board of the Hong Kong stock market after "Wei Xiaoli".

According to the prospectus, as of the end of December 2021, WM Motor has delivered a totalof 83,485electric vehicles.Among them, a total of 44,152 vehicles will be delivered in 2021, a year-on-year increase of 96.3%.

The total revenue of WM Motor in 2020 will reach 3.446 billion, a year-on-year increase of 63.3%; in 2021, the total revenue will reach 6.364 billion, a year-on-year increase of 84.7%.It should be noted that since WM Motor adopts the dealer sales model, according to the Hong Kong stock accounting standards, the income recognized in the accounting statements needs to deduct the dealer rebates, etc., while the direct sales model of Wei Xiaoli directly confirms the revenue in the accounting statements according to the terminal sales price. , the difference between the two business models leads to inconsistent revenue amounts under the same unit price and sales volume.

It is worth mentioning that compared with the financial data of Weilai, Xiaopeng and Ideal on the eve of their listing, WM Motor is more confident.In addition to sales volume and revenue, the gross profit margin, operating loss, and net profit margin of bicycles are all better than the financial data of the friend's business in the year before the listing.Up to now, the total financing of WM Motor is about 35 billion yuan, which is much higher than the "Wei Xiaoli" before the IPO.For investors, this means more certainty about the company's future growth.

New power Hong Kong stocks "listing tide"

In the context of thenew energy vehiclemarket turning to market-driven and the market value of new energy vehicle companies hitting new highs, it is the right time for WM Motor to apply for a Hong Kong stock market listing.

According to the data from the Passenger Federation, the retail sales of new energy passenger vehicles in China in 2021 will be 2.989 million, a year-on-year increase of 169.1%, far exceeding the previous forecast of the Passenger Federation of 2 million vehicles.In the first quarter of 2022, my country's new energy vehicle market continued to maintain a high growth rate, with cumulative production and sales of 1.293 million and 1.257 million respectively, an increase of 1.4 times year-on-year.Ouyang Minggao, an academician of the Chinese Academy of Sciences, predicts that China's new energyvehicle saleswill continue to grow to 5 million units in 2022, and the new energy vehicle market penetration rate will exceed 20%.my country's goal of "20% of new energy vehicles in my country by 2025" is expected to be achieved three years ahead of schedule.

At the same time, the major new car manufacturers in China aregradually gaining a firm foothold in the consumer market with the dividends of the rapid growth of thenew energy market.Among them, Weilai, Xiaopeng, Ideal and Nezha have already surpassed the monthly sales threshold of 10,000 vehicles. The delivery scale of Weimar and Leapmotor is also growing rapidly, and their performance in their respective market segments has even surpassed the traditional hot-selling fuel models. It has become an important force for joint venture car companies and traditional local car companies to not be underestimated.

Although new forces such as WM Motor have initially achieved scale effects, the high investment in R&D and marketing makes it difficult for the company to have the ability to self-hematopoieize and turn losses into profits in the short term, which makes them urgently need to go public to solve financing problems .The investor structure of the Hong Kong stock market is relatively good, and investors are more familiar with local Chinese companies; in addition, there are many financial instruments in the Hong Kong capital market, which can help investors to obtain market returns through various channels, so "Wei Xiaoli", WM Motor, Nezha and Leap Motor sprinted to be listed on Hong Kong stocks one after another, forming a "listing tide" of new energy car companies.

WM Motor stated in the prospectus that the funds raised from the IPO will be used for research and development of automobile development platforms and next-generation smart electric vehicles, expansion of sales and service networks, and brand promotion activities, so as to provide users with a better car experience.

As the capital market pays more attention to the technological innovation and development of new energy car companies, as a hub to promote the transformation and upgrading of the real economy and technological innovation, investors are paying more and more attention to the three major capabilities of new car manufacturers, namely systematic research and development capabilities, and productization.productioncapacity and popularization capacity.As a leading company in the market, WM Motor has formed a solid moat in the fiercely competitive auto market by virtue of its technological attributes, mass production quality and the advantages of focusing on the mainstream market strategy, which is favored by a wide range of investors.

Positive R&D lights up technological attributes

Today, the strength of intelligent technology has increasingly become a key indicator of the valuation system of new energy vehicle companies, and this is the core advantage of WM Motor.Since its establishment, WM Motor has adhered to positive and independent research and development, realized the commercial implementation of many forward-looking technologies in the fields of intelligent driving and intelligent cockpit, and took the lead in introducing many intelligent technologies into the domestic mainstream automobile market, bringing stable, safe, intelligent and practical to customers. , a new and convenient experience.

In terms of intelligent three-electricity, WM Motor's self-developed "vehicle domain control + intelligent driving domain control + cockpit domain control + regional gateway" architecture EEA 4.0 can support the sharing of more intelligent driving data, as well as provide reliable communication connection, power supply Connectivity supports L3 autonomous driving.In order to allow the vehicle to complete the advanced assisted driving function even in extreme conditions, the EEA has added a self-developed smart fuse box and dual power supply design, which eliminates the hidden danger of "squatting" in ordinary new energy vehicles and truly realizes worry-free driving.

In addition, WM Motor also joined hands with top global suppliers such as Bosch to create a three-electric energy system - Living Motion power domain control, showing stronger power, stability and safety.Its electric drive assembly integrates high speed and good power output adjustment, and the power transmission is faster.In terms of batteries, WM Motor adopts low-attenuation long-life battery packs and TMS (thermal management system) performance optimization, allowing users to say goodbye to the trouble of battery life collapse in low temperature environments.

WM Motor also has complete intelligent driving technology, and with the idea of ​​"inclusive technology and benefits", under the premise of safety and practicality, it brings users a richer and richer intelligent driving experience.Its intelligent driving assistance system, Living Pilot, has now been iterated to version 5.0, taking the lead in realizing the full coverage of intelligent driving scenarios of "full-scene parking - urban roads - inter-city expressways", making the driving experience easier and safer.

WM Motor has achieved full-stack self-research on core technologies and standards. At the same time, it has gathered world-class suppliers such as Bosch, Texas Instruments, and NVIDIA to create the best technical solutions in the industry chain and provide consumers with a relaxed and safe driving experience.

Mass production capability achieves excellent quality

WM Motor is one of the first car companies in the new forces to adopt the self-built factory business model. It is the first car company among the new forces to realize the digitization of the entire industry chain, which enables it to have stronger productized mass production capabilities than other new energy partners.

At present, WM Motor has two intelligent manufacturing bases, located in Wenzhou, Zhejiang and Huanggang, Hubei. The level of intelligence has reached the world's top Industry 4.0 standard.

Among them, Weimar Wenzhou Intelligent Manufacturing Base integrates the four functions of intelligent manufacturing, intelligent logistics, flexible parts and components, and automatic driving test, and includes supporting facilities such as body shop, stamping shop, painting shop, and final assembly shop.

Another WM Motor Huanggang Intelligent Manufacturing Base, which will be built and put into production in 2020, relies on a reliable supplier system and a sound quality assurance system to strictly implement the C2M production model.That is, planning according to the principle of "lean, agile, modular and flexible" to realize the automation, intelligence and interconnection of automobile production.

It is worth mentioning that WM Motor’s intelligent manufacturing base has an innovative C2M artificial intelligence solution, which can support consumers’ personalized customization of vehicles, including car function configuration, interior and exterior trim color matching and other details are available for selection.At present, Weimar C2M can provide users with more than a thousand kinds of personalized options, truly realizing "a thousand vehicles and a thousand faces".

According to the prospectus, the production capacity of the Weimar intelligent manufacturing base can reach 250,000 vehicles per year under full production.With the support of strong mass production capacity, WM Motor has already launched three SUV models EX5, EX6 and W6 and E5 sedan, and its first all-scenario intelligent pure electric sedan W7 will also be launched in the second half of this year.In addition, WM Motor expects to launch a new electric vehicle model every year in the next few years, including new models of SUVs, sedans and MPVs equipped with Caesar starting in 2023. The “WM” series product matrix will be improved day by day to satisfy users’ diversified car purchases. need.

Strategic Wisdom Focuses on Mainstream Markets

In the early stages of the development of new energy vehicles, low-end models with outstanding cost-effectiveness and high-end models equipped with rich advanced intelligent technologies tend to perform better in sales.The former is more likely to attract those price-sensitive consumers, while the latter is aimed at high-net-worth individuals who dare to try new things, making the market present a "dumbbell-shaped" structure.

Different from the new forces such as Weilai and Ideal, which mainly focus on the high-end market, or the Nezha car for the 100,000 yuan class, WM Motor always adheres to the "inclusive technology", focusing on the mainstream market of 150,000-250,000 yuan, and is committed to the The rapid adoption of forward-looking technology into mass-produced products and services at this mainstream price point enables the rapid adoption of smart cars in the mass market.

When Weilai and Ideal's high-end strategy achieved initial success, WM Motor's adherence to the concept of "inclusive science and technology" was once questioned by the outside world.Today, as the penetration rate of new energy vehicles continues to rise, the market structure is accelerating from "dumbbell" to "spindle", and the mainstream market of 150,000-250,000 yuan focused on by WM Motor will usher in rapid growth.

According to IHS Markit research data, the market penetration rate of mainstream new energy products of RMB 150,000 to RMB 250,000 will increase from 3% to 40% in the next 10 years; by 2030, the mainstream market of RMB 150,000 to RMB 250,000 will occupy about 60% of the market share .AfOn June 1, the official website of the Hong Kong Stock Exchange disclosed the prospectus of Weimar Holdings Co., Ltd.If the listing process goes smoothly, WM Motor is expected to become another new car-making force listed on the main board of the Hong Kong stock market after "Wei Xiaoli".

According to the prospectus, as of the end of December 2021, WM Motor has delivered a totalof 83,485electric vehicles.Among them, a total of 44,152 vehicles will be delivered in 2021, a year-on-year increase of 96.3%.

The total revenue of WM Motor in 2020 will reach 3.446 billion, a year-on-year increase of 63.3%; in 2021, the total revenue will reach 6.364 billion, a year-on-year increase of 84.7%.It should be noted that since WM Motor adopts the dealer sales model, according to the Hong Kong stock accounting standards, the income recognized in the accounting statements needs to deduct the dealer rebates, etc., while the direct sales model of Wei Xiaoli directly confirms the revenue in the accounting statements according to the terminal sales price. , the difference between the two business models leads to inconsistent revenue amounts under the same unit price and sales volume.

It is worth mentioning that compared with the financial data of Weilai, Xiaopeng and Ideal on the eve of their listing, WM Motor is more confident.In addition to sales volume and revenue, the gross profit margin, operating loss, and net profit margin of bicycles are all better than the financial data of the friend's business in the year before the listing.Up to now, the total financing of WM Motor is about 35 billion yuan, which is much higher than the "Wei Xiaoli" before the IPO.For investors, this means more certainty about the company's future growth.

New power Hong Kong stocks "listing tide"

In the context of thenew energy vehiclemarket turning to market-driven and the market value of new energy vehicle companies hitting new highs, it is the right time for WM Motor to apply for a Hong Kong stock market listing.

According to the data from the Passenger Federation, the retail sales of new energy passenger vehicles in China in 2021 will be 2.989 million, a year-on-year increase of 169.1%, far exceeding the previous forecast of the Passenger Federation of 2 million vehicles.In the first quarter of 2022, my country's new energy vehicle market continued to maintain a high growth rate, with cumulative production and sales of 1.293 million and 1.257 million respectively, an increase of 1.4 times year-on-year.Ouyang Minggao, an academician of the Chinese Academy of Sciences, predicts that China's new energyvehicle saleswill continue to grow to 5 million units in 2022, and the new energy vehicle market penetration rate will exceed 20%.my country's goal of "20% of new energy vehicles in my country by 2025" is expected to be achieved three years ahead of schedule.

At the same time, the major new car manufacturers in China aregradually gaining a firm foothold in the consumer market with the dividends of the rapid growth of thenew energy market.Among them, Weilai, Xiaopeng, Ideal and Nezha have already surpassed the monthly sales threshold of 10,000 vehicles. The delivery scale of Weimar and Leapmotor is also growing rapidly, and their performance in their respective market segments has even surpassed the traditional hot-selling fuel models. It has become an important force for joint venture car companies and traditional local car companies to not be underestimated.

Although new forces such as WM Motor have initially achieved scale effects, the high investment in R&D and marketing makes it difficult for the company to have the ability to self-hematopoieize and turn losses into profits in the short term, which makes them urgently need to go public to solve financing problems .The investor structure of the Hong Kong stock market is relatively good, and investors are more familiar with local Chinese companies; in addition, there are many financial instruments in the Hong Kong capital market, which can help investors to obtain market returns through various channels, so "Wei Xiaoli", WM Motor, Nezha and Leap Motor sprinted to be listed on Hong Kong stocks one after another, forming a "listing tide" of new energy car companies.

WM Motor stated in the prospectus that the funds raised from the IPO will be used for research and development of automobile development platforms and next-generation smart electric vehicles, expansion of sales and service networks, and brand promotion activities, so as to provide users with a better car experience.

As the capital market pays more attention to the technological innovation and development of new energy car companies, as a hub to promote the transformation and upgrading of the real economy and technological innovation, investors are paying more and more attention to the three major capabilities of new car manufacturers, namely systematic research and development capabilities, and productization.productioncapacity and popularization capacity.As a leading company in the market, WM Motor has formed a solid moat in the fiercely competitive auto market by virtue of its technological attributes, mass production quality and the advantages of focusing on the mainstream market strategy, which is favored by a wide range of investors.

Positive R&D lights up technological attributes

Today, the strength of intelligent technology has increasingly become a key indicator of the valuation system of new energy vehicle companies, and this is the core advantage of WM Motor.Since its establishment, WM Motor has adhered to positive and independent research and development, realized the commercial implementation of many forward-looking technologies in the fields of intelligent driving and intelligent cockpit, and took the lead in introducing many intelligent technologies into the domestic mainstream automobile market, bringing stable, safe, intelligent and practical to customers. , a new and convenient experience.

In terms of intelligent three-electricity, WM Motor's self-developed "vehicle domain control + intelligent driving domain control + cockpit domain control + regional gateway" architecture EEA 4.0 can support the sharing of more intelligent driving data, as well as provide reliable communication connection, power supply Connectivity supports L3 autonomous driving.In order to allow the vehicle to complete the advanced assisted driving function even in extreme conditions, the EEA has added a self-developed smart fuse box and dual power supply design, which eliminates the hidden danger of "squatting" in ordinary new energy vehicles and truly realizes worry-free driving.

In addition, WM Motor also joined hands with top global suppliers such as Bosch to create a three-electric energy system - Living Motion power domain control, showing stronger power, stability and safety.Its electric drive assembly integrates high speed and good power output adjustment, and the power transmission is faster.In terms of batteries, WM Motor adopts low-attenuation long-life battery packs and TMS (thermal management system) performance optimization, allowing users to say goodbye to the trouble of battery life collapse in low temperature environments.

WM Motor also has complete intelligent driving technology, and with the idea of ​​"inclusive technology and benefits", under the premise of safety and practicality, it brings users a richer and richer intelligent driving experience.Its intelligent driving assistance system, Living Pilot, has now been iterated to version 5.0, taking the lead in realizing the full coverage of intelligent driving scenarios of "full-scene parking - urban roads - inter-city expressways", making the driving experience easier and safer.

WM Motor has achieved full-stack self-research on core technologies and standards. At the same time, it has gathered world-class suppliers such as Bosch, Texas Instruments, and NVIDIA to create the best technical solutions in the industry chain and provide consumers with a relaxed and safe driving experience.

Mass production capability achieves excellent quality

WM Motor is one of the first car companies in the new forces to adopt the self-built factory business model. It is the first car company among the new forces to realize the digitization of the entire industry chain, which enables it to have stronger productized mass production capabilities than other new energy partners.

At present, WM Motor has two intelligent manufacturing bases, located in Wenzhou, Zhejiang and Huanggang, Hubei. The level of intelligence has reached the world's top Industry 4.0 standard.

Among them, Weimar Wenzhou Intelligent Manufacturing Base integrates the four functions of intelligent manufacturing, intelligent logistics, flexible parts and components, and automatic driving test, and includes supporting facilities such as body shop, stamping shop, painting shop, and final assembly shop.

Another WM Motor Huanggang Intelligent Manufacturing Base, which will be built and put into production in 2020, relies on a reliable supplier system and a sound quality assurance system to strictly implement the C2M production model.That is, planning according to the principle of "lean, agile, modular and flexible" to realize the automation, intelligence and interconnection of automobile production.

It is worth mentioning that WM Motor’s intelligent manufacturing base has an innovative C2M artificial intelligence solution, which can support consumers’ personalized customization of vehicles, including car function configuration, interior and exterior trim color matching and other details are available for selection.At present, Weimar C2M can provide users with more than a thousand kinds of personalized options, truly realizing "a thousand vehicles and a thousand faces".

According to the prospectus, the production capacity of the Weimar intelligent manufacturing base can reach 250,000 vehicles per year under full production.With the support of strong mass production capacity, WM Motor has already launched three SUV models EX5, EX6 and W6 and E5 sedan, and its first all-scenario intelligent pure electric sedan W7 will also be launched in the second half of this year.In addition, WM Motor expects to launch a new electric vehicle model every year in the next few years, including new models of SUVs, sedans and MPVs equipped with Caesar starting in 2023. The “WM” series product matrix will be improved day by day to satisfy users’ diversified car purchases. need.

Strategic Wisdom Focuses on Mainstream Markets

In the early stages of the development of new energy vehicles, low-end models with outstanding cost-effectiveness and high-end models equipped with rich advanced intelligent technologies tend to perform better in sales.The former is more likely to attract those price-sensitive consumers, while the latter is aimed at high-net-worth individuals who dare to try new things, making the market present a "dumbbell-shaped" structure.

Different from the new forces such as Weilai and Ideal, which mainly focus on the high-end market, or the Nezha car for the 100,000 yuan class, WM Motor always adheres to the "inclusive technology", focusing on the mainstream market of 150,000-250,000 yuan, and is committed to the The rapid adoption of forward-looking technology into mass-produced products and services at this mainstream price point enables the rapid adoption of smart cars in the mass market.

When Weilai and Ideal's high-end strategy achieved initial success, WM Motor's adherence to the concept of "inclusive science and technology" was once questioned by the outside world.Today, as the penetration rate of new energy vehicles continues to rise, the market structure is accelerating from "dumbbell" to "spindle", and the mainstream market of 150,000-250,000 yuan focused on by WM Motor will usher in rapid growth.

According to IHS Markit research data, the market penetration rate of mainstream new energy products of RMB 150,000 to RMB 250,000 will increase from 3% to 40% in the next 10 years; by 2030, the mainstream market of RMB 150,000 to RMB 250,000 will occupy about 60% of the market share .After gaining insight into this market opportunity, traditional joint venture brands and self-owned brands have continued to launch models ranging from 150,000 to 250,000 yuan, such as Volkswagen ID.4, BYD's "Dynasty Series", etc., including Weilai and Ideal also began to plan to increase the price of their products. The range dips down to this market range.The actions of friends and merchants to accelerate their efforts to move closer to the mainstream market proves the forward-looking significance of WM Motor's adherence to the concept of "inclusive science and technology".

Since its inception, WM Motor has focused on the mainstream market of RMB 150,000 to RMB 250,000, and has successfully established the label of "smart pure electric" in this market segment, with a certain first-mover advantage.Including the Weimar EX5, which is equipped with the most complete 12 L2-level intelligent driving assistance systems in its class, and the Weimar W6, which is equipped with the first domestic AVP unmanned autonomous parking system.In addition, the first smart pure electric car M7 equipped with 3 solid-state lidars will also start delivery in 2022, which is expected to further consolidate WM Motor's leading position in the smart pure electric market at the mainstream price.

Conclusion:

As WM Motor launches its Hong Kong stock market listing, the company will invest more in production, R&D, sales and services in the future, continue to improve consumer experience, and make smart electric vehicles a popular product that ordinary consumers can enjoy. , accelerate the transformation of China's smart travel industry, and truly realize "science and technology benefits".ter gaining insight into this market opportunity, traditional joint venture brands and self-owned brands have continued to launch models ranging from 150,000 to 250,000 yuan, such as Volkswagen ID.4, BYD's "Dynasty Series", etc., including Weilai and Ideal also began to plan to increase the price of their products. The range dips down to this market range.The actions of friends and merchants to accelerate their efforts to move closer to the mainstream market proves the forward-looking significance of WM Motor's adherence to the concept of "inclusive science and technology".

Since its inception, WM Motor has focused on the mainstream market of RMB 150,000 to RMB 250,000, and has successfully established the label of "smart pure electric" in this market segment, with a certain first-mover advantage.Including the Weimar EX5, which is equipped with the most complete 12 L2-level intelligent driving assistance systems in its class, and the Weimar W6, which is equipped with the first domestic AVP unmanned autonomous parking system.In addition, the first smart pure electric car M7 equipped with 3 solid-state lidars will also start delivery in 2022, which is expected to further consolidate WM Motor's leading position in the smart pure electric market at the mainstream price.

Conclusion:

As WM Motor launches its Hong Kong stock market listing, the company will invest more in production, R&D, sales and services in the future, continue to improve consumer experience, and make smart electric vehicles a popular product that ordinary consumers can enjoy. , accelerate the transformation of China's smart travel industry, and truly realize "science and technology benefits".