E “Three Car Manufacturing Giants” Go Back To Hong Kong?

A message obtained on March 10 showed that there was a saying that NIO (NIO), Xpeng (XPEV) and Li Auto (LI) were negotiating with several banks for stock issuance in Hong Kong and planned to return to Hong Kong for secondary listing this year. The “three car manufacturing giants” did not respond to the “listing” saying.

Before the listing saying, these “three giants” released the up-to-date 2020 financial statements one after another. From the share prices of the “three giants” in the capital market, it can be found that they have suffered from several sharp declines.

On March 10 when the American stock market was closed, NIO share price experienced a drop by 40% compared with the top; Li Auto by 50%, a-half loss; Xpeng was the worst with the drop by 60%. However, the share price drop rate was calculated after a rebound for several previous trading days. It can be concluded that this price adjustment greatly hit the new car manufacturing forces.

Photo by Denin Lawley on Unsplash

Why the “three car manufacturing giants” suffered from the drop by about a half? Is it feasible to return to Hong Kong for listing? What are their objectives?

A Loss of RMB 8.5 billion for All Three, Is It True?

On March 8, Xpeng released the up-to-date 2020 financial statements, being the last among the “three giants”. However, from the data on these financial statements, are their operating situations truly that bad?

According to these statements, in 2020, NIO released a revenue of RMB 16.258 billion with a year-on-year growth rate of 107.77%; Xpeng’s revenue is RMB 5.844 billion with a year-on-year growth rate of 151.79%; and Li Auto’s revenue is RMB 9.461 billion with a year-on-year growth rate of 3231.33%, growing by over 30 times. However, these three companies are still faced with the same question, unprofitable as well. Their total loss in 2020 reached RMB 8.5 billion.

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Disclaimer: This material/document has been prepared by Mentor Finance (the “Company”) solely for information purposes of certain qualified investors, such as professional investors. ...

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Jason Green 2 weeks ago Member's comment

Why can't they simply be listed on both?