Introduction: Compared with Tesla , the best selling is "Old Man Le". After its listing, Leapmotor has fallen back to the B round of financing valuation.
As the fourth new car company to land on the Hong Kong Stock Exchange after "Wei Xiaoli", LePan Auto (9863. HK) broke the issue price on September 29, closing at HK$31.9 on the first day, down more than 33% from the issue price of HK$48, marking the highest decline in the first day of new stocks listed in 2022.
After the start of the "most miserable IPO", Leapmotor founder and chairman Zhu Jiangming admitted to the media that this listing is not a good time, because the world is in a downward channel, both financial and international situations.
Zero-Path Technology chose to go public this time because it was a "long-distance running".
mixed "Old Man Le"
Zero Ray's prospectus shows that from 2019 to 2021, Leap Ray's revenue mainly comes from the sales of smart electric car and components, with operating income of 117 million yuan, 631 million yuan and 3.132 billion yuan respectively.
's adjusted net loss amount was 810 million, 935 million and 2.629 billion, respectively, with a total loss in three years reaching 4.374 billion yuan, and it is expected that it will continue to lose money in 2022.
2019-2022 first quarter earnings data Source: Zero-Path prospectus
2019-2022 first quarter net loss data Source: Zero-Path prospectus
Zero-Path Automobile's revenue has grown rapidly in the past three years, but the loss situation is also intensifying. The gross profit margins in the three-year period were -95.7%, -50.6% and -44.3%, respectively, and the profits are still far away. Mainly focusing on low-end products and high R&D expenses are the main reasons for the company's continued losses.
The low-priced micro electric vehicle T03, which was launched in 2020, accounts for the majority of LePan Automobile's total sales. In 2021, Leapmotor delivered a total of 43,121 cars, of which 39,000 were delivered to T03, accounting for nearly 90%.
Before this, Leapmotor had delivered a model S01, but unfortunately there were less than 3,000 units sold in total. Most people hear about this car because of "finished fines for test drives", "overturned car evaluations", and "collective rights protection for car owners".
Source: Weibo
Source: Online car market
Later, Zhu Jiangming was traveling in Spain and was inspired by Renault Twizy, which he often saw on the road. It was a super small electric car, only 2.32 meters long and 1.19 meters wide. In China, this A00 (wheelbase between 2 meters and 2.2 meters) small car is nicknamed "Old Man Le".
In 2020, Leapmotor launched this T03. The price is over 70,000 yuan, attracting low-end market consumers with short-distance transportation and commuting needs.
T03 allowed LePan to "rise" among new car-making forces. From January to July 2022, LePan Automobile's total sales were about 64,000 vehicles, ranking fourth among new car-making forces, surpassing NIO (9866.HK/NIO.N).
Leapmotor car delivery volume from January to July 2022, Source: China Business Industry Research Institute
Delivery volume from January to July 2022, Source: China Business Industry Research Institute
T03 accounts for nearly 90% of Leapmotor sales, and because of the adoption of the "quantity for price" strategy, T03 is sold at a cost price. In 2021, Leapmotor delivered about 43,700 new energy vehicle , which was calculated based on a loss of 2.868 billion yuan, which is equivalent to losing more than 60,000 yuan to sell a car.
On May 10 this year, the company announced that the pre-sale of the all-intelligent multi-scene electric sedan C01 will be launched, with the pre-sale price of 180,000 to 270,000 yuan.
enters the middle and high-end, which means that more funds must be invested in the research and development of core technologies. From 2019 to 2021, Leapmotor's R&D expenses were RMB 358 million, RMB 289 million and RMB 740 million, respectively, totaling RMB 1.387 billion.
Net R&D expense data for the first quarter of 2019-2022, source: Zero-Park prospectus
Zero-Park Auto was established in December 2015, and its original shareholders include Dahua Shares (002236.SZ). Dahua Co., Ltd. is mainly engaged in the research and development, production and sales of security video surveillance products, and ranks second in the global intelligent video surveillance market share.
Zhu Jiangming is also one of the founders of Dahua Co., Ltd. and once served as CTO. He has nearly 30 years of R&D and manufacturing experience and attaches great importance to "technical bloodline".
In 2003, an new energy vehicle company was established in the United States. Its vision is to use "IT concept to build cars" and become the beginning of the Silicon Valley war with the Detroit giant.
The following year, Elon Musk invested $6.3 million in the small company and became chairman. More than a decade later, Tesla (TSLA.O) became the world's most valuable car company, and Musk became the first person on the planet to have a net worth of more than $300 billion.
Zhu Jiangming knows this story well. He praised Musk and believed that he and the other party belonged to the same sect and were "IT carmakers."
In 2014, Tesla entered the Chinese market. In less than a year, "Wei Xiaoli" was established one after another. He judged that new energy vehicles have higher "ceilings".
So, Zhu Jiangming, who was 48 years old at the time, embarked on the road of building cars.
The name of "Zero Run" means "starting from scratch".
On the one hand, Zhu Jiangming changed his career from the field of security monitoring , and he had "zero experience" in the field of car manufacturing.
According to Zhu Jiangming’s earlier interview, he is a complete "outsider". Most of the team members are also engaged in development. After the establishment of Leapmotor, he didn’t even know that car manufacturing and sales must obtain access qualifications, so he could only find Changjiang Automobile OEM.
On the other hand, "zero" means that all core technologies and systems of Zero Run insist on independent research and development. It is the second new energy vehicle company in the world to "self-developed in all regions" besides Tesla.
Perhaps out of confidence in "IT car manufacturing", Zero Run is indeed strategically benchmarking Tesla everywhere. In July last year, Zero Run held a strategic planning conference, and Zhu Jiangming set a goal - Zero Run will "release 8 new cars in 4 years", "selling 800,000 vehicles in 2025", and "surpass Tesla in 3 years".
How much is Zero Run worth
22 second quarter financial report shows that Zero Run’s account has a total of 4.14 billion yuan in cash and equivalents, restricted deposits and cash. The adjusted net loss in 2021 was 2.63 billion yuan.
is imminent to find new financing.
At this time, news began that Leapmotor will be released on Hong Kong stock . Although Zhu Jiangming knew very well that going public is not a good time now. But still "sprinting" to the IPO under this circumstance can indeed reflect that Zero Run urgently needs "money ability" to transfusion.
New car-making forces, who can live longer depends on whether the money is enough to burn. The new energy vehicle industry is indeed the area with the most financing for the real economy in recent years. In the past five years, the financing scale of the entire industry has exceeded 200 billion yuan.
In the second quarter of this year, NIO's cash and cash equivalents , restricted cash funds and short-term investment scale exceeded 54.4 billion yuan. During the same period, the cash reserves of Xiaopeng Motors (9868.HK/XPEV.US) and Ideal Automobile (2015.HK/LI.O) exceeded 41.3 billion yuan and 53.6 billion yuan respectively.
Compared with the reserves of several other new car-making forces, Zero-Road is significantly lower than that.
Previously, Leapmotor completed a total of 8 rounds of financing, with a total amount exceeding 11.5 billion yuan. The institutions that invest in it include Hangzhou State-owned Assets Supervision and Administration Commission , Guosen Securities , CICC Capital, Sequoia Capital and Shanghai Electric , etc.
Zero-Play's various rounds of financing, source: Zero-Play prospectus
Among them, Sequoia Capital is not only the first investor of Leapmotor in addition to its original shareholders, but also conducted two rounds of follow-up investment.
Chen Jinxia, an early shareholder of Dahua Co., Ltd., participated in three rounds of financing, with a total investment of 170 million yuan. Gao Dong, managing director of Shanghai Xiangheyong original equity investment partnership (limited partnership) and Yonghua Investment, owned by " Yongjin-based ", participated in the investment.
Leapmotor also received support from Hangzhou's local state-owned capital. In the C round of financing, the investment institutions wholly-owned by the Hangzhou State-owned Assets Supervision and Administration Commission invested 3 billion yuan, accounting for half of the total round of financing. After eight rounds of financing for
, according to media reports, the valuation of Leapmotor is about RMB 22 billion. If calculated based on the total share capital after issuance and the consideration of C round per share of RMB 27.26, ZeroPlayer's valuation has exceeded RMB 30 billion. How much is the value of
Zero Run? Until now, the market's reaction is still relatively conservative.
According to the previous announcement of Leapmotor, it plans to issue 131 million H shares to the world, with an offer price of between HK$48 and HK$62 per share, and can raise up to HK$8.811 billion. However, it received only 0.16 times subscription during the public offering phase, and received a total of 3,151 valid applications.
is estimated at the issuance price of HK$48, and the net proceeds from Leapmotor IPO are estimated to be approximately HK$6.06 billion (approximately US$772 million), a decrease of about 23% compared with the expected fundraising of US$1 billion. Half a month since the launch of
, Leapmotor has suffered a "half-cut". As of the close of October 13, Leapmotor was HK$17.9 per share, down 12.47%. The closing price of hit a new low since its listing, and the market value of Hong Kong stocks fell to HK$16.5 billion, falling below the cost line of the B round of financing.
cornerstone investors Zhejiang Provincial Industrial Fund, Jinhua City Industrial Fund, Jinkai Leading Fund (general partners and limited partners are Caitong Capital and Rongsheng Group respectively), Cathay Oriental, etc., and have currently lost hundreds of millions of yuan on the book.
Source: Zero Run Prospectus
