Weilai’s net loss in the third quarter after listing was over 2.8 billion

Abstract As a partner, Weilai Automobile and Jianghuai Automobile (600418, SH) were bothered by performance. On November 6th, US local time, Weilai Automobile disclosed the first financial report on the New York Stock Exchange. The financial report shows that in the third quarter of this year, Weilai Automobile's operating income was 14...

As a partner, Weilai Automobile and Jianghuai Automobile (600418, SH) were bothered by performance.

On November 6th, US local time, Weilai Automobile disclosed the first financial report on the New York Stock Exchange. The financial report shows that in the third quarter of this year, Weilai Automobile's operating income was 1.47 billion yuan, a 31-fold increase compared with the previous quarter, but it is still at a loss, with a net loss of 2.81 billion yuan and a loss increase of 56.6%. The financial report predicts that in the fourth quarter, Weilai Automobile's revenue will increase by 95.6% to 103.8%.

On the day of the first financial report, Weilai’s share price opened higher and lower. As of the close of the day, Weilai Auto's share price closed at 6.4 US dollars / share, a decline of more than 4%.

At the same time, the third quarterly report released by Jianghuai Automobile showed that the company's operating income in the first three quarters was 36.331 billion yuan, up 2.22% year-on-year; the net profit attributable to shareholders of listed companies was about 47.827 million yuan, down 78.13% year-on-year.

Jianghuai, whose net profit has fallen, is increasing its investment in Weilai. A few days ago, Li Bin’s founder Li Bin’s “Porsche factory is definitely not comparable to the Jianghuai Weilai factory”, so that the “Golden Lord” Jianghuai behind Weilai has surfaced.

Jianghuai investment has exceeded 1.5 billion yuan

“Jianghuai invested a few billion yuan in the Hefei Economic and Technological Development Zone to help us (Weilai) build a brand-new world-class factory, using the best equipment in the world, and designing the production line according to our process requirements. We will participate in the whole process of manufacturing cooperation management, and in accordance with our quality standards to accept vehicles, Jianghuai provides skilled workers and mature manufacturing management." Recently, Li Bin said on a TV show.

“Compared to Porsche, the equipment introduced by the JAC Weilai factory is world-leading, but from the perspective of brand strength and technical strength, there is still a gap between the Jianghuai Weilai factory and the Porsche factory.” Recently, Jianghuai The person in charge of the car said in an interview with the reporter of "Daily Economic News".

According to the strategic cooperation framework agreement signed by Jianghuai and Weilai in 2016 (hereinafter referred to as the framework agreement), the two parties expect the overall cooperation scale to be about 10 billion yuan to jointly promote the cooperation of new energy vehicles and intelligent networked automobile industry chain. At the same time, the relevant person in charge of Weilai Automobile said in an interview with the reporter of "Daily Economic News" that the Jianghuai Weilai factory is "co-investment and construction".

Since it is the cooperation between the two parties, why did Li Bin say "Jianghuai helped us build the factory?" Who invested in the factory?

“The new factory was invested and built by Jianghuai Automobile, and plans to build two production lines.” A source close to Jianghuai Automobile revealed to reporters.

On October 30, Jianghuai Automobile released the “Jianghuai Automobile Fund Raising Funds Temporary Supplementary Liquidity” announcement (hereinafter referred to as “Announcement”), the reporter found that as of September 30, 2018, new energy passenger vehicles and core components The total investment amount of the construction project is about 2.373 billion yuan, and the accumulated investment is about 1.575 billion yuan.

“The new energy passenger car and core parts construction project in the “Announcement” is the Jianghuai Weilai factory construction project.” According to a person close to Jianghuai Automobile, the factory was invested by Jianghuai alone, and the total investment amount was As of 2.3 billion yuan, as of September 30 this year, Jianghuai Automobile has invested more than 1.5 billion yuan in the construction of the new plant. Although the new factory is a joint project between Jianghuai Automobile and Weilai, the dominant position is in the hands of Jianghuai. It is only to provide constructive guidance during the construction process."

Rapid mass production is the original intention of cooperation

The high capital investment of over 2.3 billion yuan is not a small amount for Jianghuai Automobile. According to the third quarterly report released by Jianghuai Automobile in 2018, during the reporting period, the net profit attributable to shareholders of the listed company was approximately RMB 47.823 million, a year-on-year decline of 78.13%.

“Jianghuai’s decline in performance was mainly due to the impact of the macro economy and the market. According to the data, from January to September, the cumulative sales volume of Jianghuai Automobile was 361,600 units, down 5.53% year-on-year.” The relevant person in charge of Jianghuai Automobile said to reporters.

Sales are falling and profits are falling. Jianghuai is living on subsidies. According to the financial report released by Jianghuai Automobile, in the first three quarters of this year, Jianghuai received a total subsidy of 10.28 billion yuan from the new energy government.

Under this circumstance, why is Jianghuai still willing to spend more than 2.3 billion yuan to build a factory for Weilai? "At present, among the new forces in the market, Weilai is one of the few companies that can achieve rapid mass production. This is also the original intention of Jianghuai to choose to cooperate with Weilai." The relevant person in charge of Jianghuai Automobile said frankly.

According to the financial report, Weilai Automobile's only mass production delivery model, the ES8, delivered 3,268 units in the third quarter of this year, higher than the original target of 2,900 to 3,000 vehicles. It is expected that the delivery volume in the fourth quarter will reach 6,700 to 7,000. Car. It is understood that Weilai Automobile will launch the second production model ES6 next year.

Jianghuai Automobile released the "Jianghuai Automobile 2018 semi-annual fundraising situation comparison table" released in August this year, showing that Jianghuai's income in this project is not much. The data shows that as of the end of June this year, the new energy passenger car and core parts construction projects, the cumulative output of 500 vehicles, sales revenue of 0.69 billion yuan.

"At present, the monthly production capacity of the Jianghuai Weilai factory can reach 2,000." A source told reporters that as of the end of September this year, Weilai Automobile had delivered about 4,000 vehicles and could deliver 10,000 new vehicles by the end of the year.

If the Jianghuai Weilai factory completed the delivery of 10,000 new cars this year, what is the revenue of Jianghuai? In this regard, the relevant person in charge of the above-mentioned Jianghuai told reporters that the specific cost of each vehicle's foundry is not convenient for external explanation.

In this regard, the industry has analyzed that, at the current annual output of 10,000 vehicles, it is still difficult to recover the investment in the short term, unless the annual production capacity gradually climbs to the planned 100,000 vehicles, or the Jianghuai brand car and the Weilai Automobile Line production, or can further dilute construction costs.

From this point of view, for Jianghuai, whose performance has declined, it is not easy to go through the road of transformation to build a high-end business.

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