In the early morning of August 14, Beijing time, weilai automobile submitted the IPO ( initial public offering ) prospectus document to the us securities and exchange commission ( sec ) today. The prospectus shows that weilai auto plans to list on the new York stock exchange under the stock code " nio" and plans to raise up to 1.8 billion us dollars.
The prospectus discloses that Ultimate founder and chairman Li Bin holds 17.2%, Tencent 15.2%, Gao Ning 7.5%, Ultimate North American CEO Padmasree Warrior holds 1.4%, and car and founder Li Want to hold 1.7%. As of July 31, 2018, the cumulative total financing exceeded 2 billion 400 million US dollars.
Photo source: CapitalWatch
As of June 30, 2018, Weilai had total revenue of $6.951 million (45.991 million yuan), including $6.71 million (44.399 million yuan) in auto sales, a total loss of $526 million (3.479 billion yuan) and a book cash loss of 4.479 billion yuan. In 2017, Wei Lai recorded a net loss of 5.02 billion yuan.
About the delivery of the car. As of July 31, 2018, Weilai has more than 17000 ES8 orders, more than 1300 ES8 production units, and 481 ES8 units delivered. It still has a lot of vehicles in progress, and as of March 31, 2018, it has 2732 patents worldwide.
As of July 31, 2018, seven " weilai user centers" have been put into operation, the 8th weilai center ( Shenzhen ) opened in early August, and 53 business outlets have been put into operation. As of the opening of Shenzhen weilai center, weilai has the delivery capability in 55 cities.
As for charging, the prospectus shows that 60-80 alternative power stations are expected to be in use by the end of 2018 on the 400-500 rechargeable vehicles, with deliveries in 169 cities.
One of the "bright spots" is that Li Bin, the chairman of Nutra Motor, has decided to take out a third of the shares of Weilai, hold 50 million shares, and move into the trust structure, while maintaining its voting rights. Its economic benefits will be discussed and decided how to use by the owner users. This is the first time a company has made such a decision, according to PingWest, which wants "users to participate in decisions about the use of trust benefits."
This is an atypical listed company.
In November 2014, by Li Bin, Liu Qiangdong, Li Wang, Tencent, Gao Ning Capital, Shunwei Capital and other entrepreneurs and investment institutions jointly launched Weilai, broadly speaking, is a car company. Previously, "Wei Lai car" had taken away the "car", collectively known as "Wei Lai" brand. It has been declared not just an automotive company, but the first "user company" in the world to create a pleasant lifestyle for its users by providing high-performance smart electric vehicles and extreme user experience.
As for what " user enterprise" is, Li Bin, chairman of weilai automobile company, said in an open letter in the prospectus: " the enthusiasm and support of our users inspired me to further think about how to establish a deeper connection between nio and users. Although I will reserve the voting rights transferred to trust stocks, I will let nio users discuss and propose how to use the economic benefits of these stocks, which will be implemented in the future through some mechanisms. I believe this decision will be loyal to nio's initial intention to become a global user enterprise and will deepen our relationship with users. "
But the announcement of "user Enterprise" is not enough to solve the imminent problem of electric vehicle delivery.
At present, Celeon has established R & D, design, production and business institutions in 13 places such as San Jose, Munich, London and Shanghai. On November 21, 2016, it launched the English brand "NIO" in London. And EP9.2017, the world's fastest electric vehicle, was unveiled at the 2017 Shanghai International Auto Show with 11 cars on April 19, the first show in China. The mass-produced ES8 has been unveiled for the first time, and the flagship EP9 has launched the. ES8, a high-performance, seven-seater, purely electric SUV, which has already begun delivery.
The mention of Wei Lai, will make people more reminiscent of Tesla. Many people consider Wei Lai to be a disciple of Tesla. As of press time, Tesla had a market capitalisation of $60.7 billion, surpassing many traditional car giants such as GM.
But in the same way, Tesla is losing money all the year round and has heavy debts. On August 7, 2018, Tesla founder Elon Musk just announced that he would consider privatizing Tesla at $420 a share to end the perennial swordsmanship with Wall Street.
A little far from the money
As a “user company” that provides smart electric vehicles, Weilai’s main profitability lies in the sale of electric vehicles.
Weilai is already delivering the ES8 electric vehicle, and will launch its second smaller size ES6 by the end of 2018, with delivery expected to begin in 2019.
Image source: CAR Magazine
In the first six months of June 30, 2018, Weilai Automobile's total revenue was 6.951 million US dollars (about 45.591 million yuan), of which car sales revenue was 6.71 million US dollars (about 44.399 million yuan). Other sales revenue was US$241,000 (approximately RMB 1.592 million). It is still a company that must rely on selling cars to get the main cash flow.
But this seems to be a lot of difficulties. Dozens of risk factors, including some highlights, have been mentioned in the prospectus for profits from mass-produced electric vehicles.
Mass production of cars, vehicle technology development and the ability to attract target customers are unproven and are still in progress; Weilai has now started production, has not yet generated revenue from production and has not yet made a profit. And this may continue in the future; it may require continued financing in the future; the risks of partners and government subsidies for electric vehicles may affect the car business.
In addition to car sales revenue, Wei lai provides other vehicle value-added services. Wei lai relies on nio service to create profits - including service expansion package, battery rental service, auto finance and registration service, etc.
From this point of view, it's a bit like millet. Mingming is a hardware-based company that likes to emphasize its "Internet thinking" and likes to "talk about the service experience." In the past, "Internet companies" have been replaced by a new word - "user businesses." And the stock market has become ubiquitous. One of the East - Shun capital, the actual controller is millet founder Lei Jun.
This is the so-called "Wei Lai model."
Wei tries to get rid of the spell of Tesla disciples and create his own pattern.
It has established its own power exchange system. Users can power up on the app. All services are officially run by the company itself, and do not involve tripartite services, including car owners' services, power exchange, rechargeable cars, and Celebri community. Weilai wants its employees to serve users and ensure a consistent experience.
In addition, the weilai app community provides many market activities, establishes an atmosphere of public opinion, and provides consulting, activities, shopping malls, and car purchase-related services on the weilai app. According to the information learned by ping west entertainment ( public number: wepingwest ), the number of registered users of weilai app is about 490,000, and the number of live users per month is about 100,000.
Through the services provided by weilai app and " weilai center" nio house, the car has only become an " entrance" to the weilai ecosystem, and weilai pays more attention to being a user community. In the prospectus, Wei lai called this the " core innovation point" of his business model. " Wei lai's vision is to create a pleasant lifestyle by providing high-end intelligent electric vehicles and excellent user experience. "
According to the information provided by Weilai, Weilai is committed to become the first "user enterprise" in the world, creating a new enterprise user relationship, not only to provide a worry-free car user experience, but also to create a high-end brand, the ultimate product, high-quality service-driven loyal user community. Ulaeva App, Ulaeva Center and Ulaeva Consultant are at the core to develop continuous social contacts with users and create a pleasant lifestyle for users.
PingWest has previously mentioned Weilai's social mechanisms, traffic thinking and offline business in Weilai, an Internet company dressed in a new carmaker's coat.
From the perspective of community mechanism --- discussing the relationship between people and people, traffic thinking --- how to get more resources and more users, how to connect online and offline businesses --- how to access data and provide better services to both online and offline, which embodies the vision of "user enterprise" advocated by the world.
But the premise is that a car must be delivered to its users. Just like millet cell phones cannot always be out of stock.