Text: Original by Dongchedi Xing Qiuhong [Original by Dongchedi Industry] Leapmotor is listed, but investors who have invested in new stocks have completely "breaked their defenses". On September 29, Zhejiang Leapmoto Technology Co., Ltd. (hereinafter referred to as Leapmoto) was

text: Original by Dongchedi Xing Qiuhong

[Original by Dongchedi Industry] Leapmotor is listed, but investors who have invested in new stocks have completely "breaked their defenses".

Leapmotor's first day of listing stock price trend

On the first day of listing, Leapmotor's closing stock price fell to HK$31.9, down more than 33%, setting the largest decline in the first day of listing new stocks so far in 2022. Even so, Leapmotor, which has successfully listed, can still gain a lot of financing and take a breath in finance. The only loser is actually those investors who have invested in new stocks and cornerstone investors .

new energy concept + high sales should have been the core bargaining chip of LePan Automobile, but judging from the performance of the capital market on the first day, the market obviously does not buy it. Isn’t it good for the rapid growth of new energy concept? What's the difference between

Zero Run and "Wei Xiaoli"?

As the fourth new car manufacturer to land on the Hong Kong Stock Exchange, even if LePlayer is unwilling to do so, it has to directly compare with "Wei Xiaoli". This comparison will find the difference. It is also this difference that explains the break on the first day.

Prospectus introduced that LePan Automobile is the fifth largest emerging electric car company in the world and the fourth largest emerging electric car company in China. What data supports this view?

In the first eight months of this year, the cumulative delivery volume of Leapmotor was 76,563

In 2021, the total sales volume of Leapmotor was 43,748 tillions, a year-on-year increase of 4.4 times. In the first eight months of this year, its cumulative delivery volume was 76,563 vehicles, slightly lower than Nezha Auto and Xiaopeng Auto , but higher than Ideal and NIO .

Even so, Zero Run still cannot escape three major doubts:

is first of all the product structure. On the surface, sales are growing rapidly, but in fact, most of the high sales data are contributed by T03. This is a mini electric vehicle with a subsidy price of less than 100,000 yuan, accounting for nearly 60% of sales. What remains is the Leap Race C11, which has a subsidy of 179,800 to 239,800 yuan.

T03

"Wei Xiaoli" these three companies either say "fighting" BBA or want to "step on" Cullinan. Not to mention the NIO , which can be 400,000 or 500,000 , Xiaopeng , the lowest G3 will be 170,000.

quickly occupied the market with low-priced models, focusing on cost-effectiveness. However, in the current electric vehicle market, both batteries and chips have high costs, and this strategy will inevitably be difficult to maintain for a long time.

followed by profitability. Compared with "Wei Xiaoli", LeBo is still far behind this.

Image source: Leapmotor Auto Prospectus

In 2021, Leapmotor lost about 60,000 yuan for every car sold. In 2020, this number reached 110,000 yuan. By the first quarter of this year, Zero Run's gross profit margin was -27%. In other words, if you just produce a car, you will lose nearly 30% without considering the costs of transportation, sales, advertising, etc. Not to mention the net profit, it is -52%.

Finally, it is brand awareness. Compared with NIO, which focuses on high-end products, Xiaopeng, which focuses on intelligence, and the ideal of starting a business with a daddy group, Zero Run has almost no characteristics. Of course, this is a low emotional intelligence statement. A high emotional intelligence may say that the long-term plan is not obvious.

This is why, after struggling in the new energy market for 7 years, he is still a "passerby" after returning.

Leapmotor is listed, and the car is more expensive.

is down the issue price when it comes to listing. Leapmotor Chairman Zhu Jiangming said: "It is indeed a not a good time period, because the global situation is turbulent and is in a downward channel. But the main reason we choose to go (list) is that we don't care about the current time period, which is a long-distance race. What we care more about is the real quality and get our market share as soon as possible."

Leapmotor adopts the "full-domain self-development" model

Translate it roughly: Don't worry if you are trapped, we are still struggling to gain market share. However, Leapmotor's losses have not yet come to an end. The key lies in a word repeatedly mentioned in the prospectus - "all-region self-development".

"Whole-domain self-development" officially defines itself as the independent research and development of all key software and hardware in the core systems and electronic components of smart electric vehicles.

"Self-developed and self-made core systems and electronic components" layout

According to the "Self-developed and self-made core systems and electronic components" layout of Zero-Path: except for the interior and exterior decoration and battery cells, Zero-Path has adopted a large number of self-developed self-developed in almost all sectors. These include motors, reducers, and even the headlight system are self-developed. Typically, "both to have to have to have to have to have to have to have to have to have to have to have to have to do to have to do to have to do to have to do to have to do to have to do to have to do to have to do to have to do to have to do to have to do to have to do to have to do to get the typical "benefits".

Most new car manufacturers use: the underlying hardware production is handed over to third parties for integration, and they do their own software algorithms and interaction designs that are close to users.

Although it has its reasonableness, the most fatal problem is that it is difficult to convert it into technical advantages in the short term.

Full-domain self-development will be difficult to convert into technical advantages in the short term

If you want to play your advantages, you need to have enough investment in vertical integration. Just like BYD , 80% of the components can be self-sufficient, and important components such as chips and batteries can be produced by themselves, or even sold to the outside world. This will give full play to the greatest cost and technological advantages in the inverse new energy market.

Obviously, the current Leapmotor cannot afford such high integration costs, which will lead to the "full-region self-development" strategy being only at the level of just skimming the water.

Leapmotor's R&D accounts for 23.6% of revenue

After it was launched, the product will transform "all-region self-development" into a visible "longboard" for consumers; financially, increasing gross profit and saving profits have become issues that Leapmotor has to face. It can be seen that it is probably difficult for consumers to let Leapmotor continue to launch low-priced electric cars worth about 100,000 yuan.

Leapmotor plans to launch 7 new models in the next 3 years

In fact, Leapmotor plans to launch 7 new models in the next 3 years, and hopes to gradually penetrate into the mid-to-high-end mainstream market through these new models. However, this bottom-up road is destined to be difficult.

is written at the end:

is not just Zero Racing, but new forces in second-tier car manufacturing in , including Nezha, WM, , Aiways , etc., have also been intensively circulating recently. Each of them almost wrote the word "worry" on their faces.

However, Leapmotor's IPO was cold. On the one hand, it could be based on the wrong timing. On the other hand, it also shows that the capital market does not have much patience with new forces.

Previously, Zhu Jiangming compared car manufacturing to marathons, and now the competition of new second-tier car manufacturing forces has just begun.