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Following the successful IPO of the new car-making force Leapmotor on the Hong Kong Stock Exchange, another new force brand WM Motor also accelerated the IPO delivery, but the prospectus disclosed by WM Motor has caused considerable controversy online.
According to the prospectus of WM Motor, from 2019 to 2021, WM Motor's losses continued to increase, of which a huge loss of 8.2 billion yuan was lost in 2021. Against the backdrop of WM Motor's huge losses, WM Motor's founder, chairman and CEO Shen Hui sky-high salary has also attracted much attention from many parties. Data shows that Shen Hui's salary in 2021 was 1.26 billion yuan, accounting for nearly 30% of WM Motor's revenue in the same year. Its super high personal salary is in sharp contrast to WM Motor's annual annual losses.
In addition, WM Motor's administrative expenses were 2.7 billion yuan in 2021, a year-on-year increase of 57%. WM Motor said: "It is mainly due to the significant increase in share-based payment expenses caused by the award of share rewards to several management members, and the share-based payments paid to domestic investors in the C+ series." Specifically, the total salary paid by WM Motor to the main management in 2021 was 1.75 billion yuan, of which Shen Hui's total salary accounts for 72% of the total.
In response to this, according to the Science and Technology Innovation Board Daily, this morning, the well-known investor, founding partner of Jiahua Capital, Song Xiangqian criticized the CEO of WM CEO for the sky-high remuneration: "There are monsters every day, and this year there are a lot!" Jiahua Capital Song Xiangqian pointed out in his circle of friends, "No matter from any angle, WM cannot be considered a well-managed enterprise. If the CEO really receives 1.26 billion yuan in salary and equity incentives, and accounts for more than 30% of revenue, what is the basis behind this? Did WM Motor create commercial achievements that are comparable to Huawei , Google , Facebook , Tesla ? "
In comparison, Leapmotor, which is also a new car-making force, lost 2.85 billion yuan in 2021, but the brand founder, chairman, executive director and CEO Zhu Jiangming's total annual salary is only 9.546 million yuan, accounting for 9.9% of the total salary of major managers. The total salary of two new car-making brands, , Ideal Auto and , Xiaopeng Auto , is 1.504 million yuan and 1.352 million yuan respectively in 2021. If calculated based on this, it means that Shen Hui's total salary in 2021 is nearly 800 times that of Li Xiang, CEO of Li Xiang. However, Shen Hui's annual salary of 1.26 billion yuan is composed of two parts: ordinary salary and restricted shares, of which the actual salary is only 2.01 million yuan, and the remaining part is paid in the form of restricted shares. This part of the money can only be acquired after WM Motor goes public. In other words, if WM Motor is not ideal, Shen Hui is likely to not get this part of the money.
According to the concerns of the automobile industry, as early as September 2020, WM Motor began to prepare to enter the ", the first stock of the new force of in the Science and Technology Innovation Board". On January 29, 2021, the Shanghai Supervision Bureau issued an announcement that WM Motor Smart Travel Technology (Shanghai) Co., Ltd. has met the conditions for guidance acceptance and listing of the Science and Technology Innovation Board, but not long after, WM Motor was exposed to suspending its application for IPO on the Science and Technology Innovation Board, because WM Motor's listing materials found many problems during the review. In response, Shen Hui responded: "Rumor"; WM Motor responded: "The listing work is in order, and the time is not yet determined." On June 1 this year, WM Motor officially submitted an application for listing of Hong Kong stock , and Haitong International , China Merchants Bank International and Bank of China are its sponsors.
Information shows that WM Motor was founded in 2015 and was founded by Shen Hui, former vice president of Geely Holding Group, and is headquartered in Shanghai. Before founding WM Motor, Shen Hui had successively held management positions in core automotive parts companies and vehicle companies such as BorgWarner , Fiat , Volvo and Geely . Therefore, compared with Li Bin , He Xiaopeng and Li Xiang, Shen Hui has accumulated a lot of experience in automobile manufacturing. According to the equity list of WM Motor Company, Shen Hui and Wang Lei currently hold a total of 30.82% of the shares.Since its establishment, WM Motor has experienced 11 financings, with a cumulative financing of over 35 billion yuan.
in terms of products, as of now, WM Motor has laid out four models, EX5, W6, E.5 and M7. Among them, EX5 is the first model under WM Motor. It was launched and delivered on September 28, 2018, and was the first to break PPT car manufacturing. WM EX5 is positioned as a compact pure electric SUV, with a price range of 146,800-198,800 yuan. Compared with car companies such as NIO and Ideal, WM Motor's first model is positioned at a relatively low-end position. The low price of the product means that it can better gain the market. But in fact, WM Motor's sales are currently significantly behind NIO and Ideal. In comparison, the first model of NIO , ES8 , is priced at 448,000 yuan, while the first model of Ideal Auto, is priced at 328,000 yuan.
data shows that in 2019, WM Motor delivered 16,900 vehicles, NIO delivered 20,600 vehicles, and Xiaopeng delivered 16,700 vehicles, ranking second in the new car companies, but the good times did not last long, and this excellent performance only lasted for one year; in 2020, WM Motor delivered 22,500 vehicles, NIO delivered 43,700 vehicles, and Xiaopeng delivered 27,000 vehicles, and Ideal delivered 32,600 vehicles, WM Motor fell out of the top three; By 2021, Xiaopeng delivered 98,200 vehicles, NIO delivered 91,400 vehicles, Ideal delivered 90,500 vehicles, Nezha delivered 69,700 vehicles, while WM Motor only delivered 44,200 vehicles, which is a huge gap with Wei Xiaoli; after entering 2022, WM Motor continued to lag behind Wei Xiaoli. In the first half of this year, WM Motor delivered a total of 21,700 vehicles, while Xiaopeng, Nezha, Ideal and NIO were 69,000 vehicles, 63,100, 60,400 and 50,800 vehicles, respectively.
prospectus shows that from 2019 to 2021, WM Motor achieved revenue of 1.7621 billion yuan, 2.6717 billion yuan and 4.7425 billion yuan, respectively; net losses were 4.145 billion yuan, 5.084 billion yuan and 8.206 billion yuan respectively. Based on this calculation, WM Motor's cumulative losses in three years were as high as 17.435 billion yuan, while NIO, Xiaopeng and Ideal, which are also new car-making forces, had net losses of 4.016 billion yuan, 4.863 billion yuan and 322 million yuan respectively in 2021. Judging from the data, although these new car-making forces are in a loss state, WM Motor's sales are only half of that of NIO and Xiaopeng, and the losses are twice as high. At the beginning of 2020, Shen Hui said: "I won't disclose how much money we have burned, because we definitely can't rank in the top two, and we are relatively low. At present, we are very confident that we will become the world's first new car-making company that truly makes a profit all year round. We hope to run ahead of Tesla and firmly believe that we can do it." In addition, after the M7 press conference last year, Shen Hui said in an interview: "New car-making forces are running in the last mile of the marathon, and it is meaningless to compete internally with delivery volume. It should be compared with BYD , GM, and Honda to grab their share. With the arrival of M7, WM Motor is confident that we will return to the first camp of new car-making forces in 2022." M7 is WM Motor's first smart electric sedan. The car was officially released on October 22, 2021, and is positioned as a medium and large pure electric vehicle. According to the plan, M7 will be officially launched in the fourth quarter of this year.
However, judging from the current development of WM Motor, WM Motor has not only not reached Tesla, but has been surpassed by new second-tier brands such as Nezha and Zero Run. M7 will not be launched until the fourth quarter. It is extremely difficult for WM Motor to rely on M7 to return to the first camp of new car-making forces in 2022.
data shows that since 2017, WM Motor has lost more than 10 billion yuan, and listing has become a must for WM Motor to continue to continue to lose money. As for how WM Motor will go on the market in the future, it is not clear at this time.
