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Exposure of Weilai's equity: Tencent's high position clearing for the two shareholders and holding Hefei thigh to save themselves

via:博客园     time:2020/5/16 22:55:13     readed:88


Wen / Lei Jianping

Source: Lei Jianping (ID: touchweb)

Report of Lei Jianping on May 15

Wei Lai automobile yesterday submitted 20-F documents to the US SEC, which showed that as of March 31, 2020, Wei Lai had a total of 1112458304 shares, of which 831928082 were class a common shares, 132030222 were class B common shares and 148500000 were class c common shares.

As of March 31, 2020, Li Bin, the founder of Weilai, holds 154689253 shares, 13.8% of the shares and 47% of the voting rights; Qin Lihong, the president of Weilai, holds 10538699 shares, less than 1% of the shares.


As of March 31, 2020, the equity structure of Weilai

Tencent holds 12.6%, the second-largest shareholder; has 21.1% of voting rights; Baillie Gifford.

Li Bin's small reduction high position clear position Temasek's reduction

As of February 28, 2019, there are 1052662271 shares in Weilai, of which 772132049 are class a common shares, 132030222 are class B common shares and 148500000 are class c common shares.


As of February 28, 2019, the equity structure of Weilai

Li Bin holds 151689253 shares, 14.4% of the shares, and 48% of the voting rights; Qin Lihong holds 10538699 shares, 1% of the shares, and 0.4% of the voting rights.

Tencent holds 13.3% as the second largest shareholder; has 21.6% voting rights; Baillie Gifford;

By comparison, we can find that the share capital has increased over the past year, mainly the increase of A types of common stock, Li Bin has reduced holdings, shares fell 0.6 percentage points, voting rights fell 1%. Tencent and Baillie Gifford

Hillhouse emptied its stake in Weilai a few months ago. Temasek has continued to reduce its holdings in Weilai. Temasek once held 5.4% of the shares. As of January 24, 2020, Temasek also held 13.909 million shares of Weilai automobile, 1.8% of which is now down to 1.3%.

Last year's loss was 11.296 billion

2019 is a tough year for Yulai, with layoffs, senior executives leaving, vehicle recalls and all kinds of disturbances.

The total revenue of Yulai automobile in 2019 is 7.824 billion yuan (about 1.124 billion US dollars), up 58.0% year on year.


However, in 2019, the company's net loss was 11.295.7 billion yuan (about 1.625 billion US dollars), an increase of 17.2% year on year. Excluding equity incentive expenditure (not in accordance with the US GAAP), the adjusted net loss was 10.962 billion yuan (about USD 1.574.6 billion), an increase of 22.4% year on year.

In 2019, the operating loss of Yulai automobile was RMB 11.079.2 billion (about USD 1.591.4 billion), an increase of 15.5% year on year. Excluding equity incentive expenditure (not in accordance with the general accounting standards of the United States), the adjusted operating loss was 10.745 billion yuan (about $1543.5 million), an increase of 20.5% year on year.

In 2017, 2018 and 2019, the operating cash flow of Weilai automobile was -4574.7 million, - 79118 million and -87217.1 million (about US $1252.8 million), respectively.


As of March 31, 2020, the management structure of Weilai

Along with the loss is the company's management turmoil, many executives continue to leave.

Among them, in August 2019, Wei Lai's co-founder and executive vice president Zheng Xiancong retired from the daily business staff, and in October 2019, Wei Lai's chief financial officer (CFO) Xie Dongying resigned.

In October 2019, Yulai also made management adjustment, among which, Shen Feng was promoted to executive vice president, responsible for the quality, procurement, manufacturing and logistics operation team; Zhou Xin was promoted to executive vice president, responsible for the product and project management team, and assisting the CEO to coordinate the product R & D team;

Ganesh V

Shen Feng, Zhou Xin and Ganesh V


Li Bin once said in March 2020 that Yulai has done a lot of organizational optimization and business adjustment work in 2019, with the total number of personnel reduced from nearly 10000 at the beginning of 2019 to less than 7000 at present.

600 million compensation paid to JAC

Weilai automobile and JAC automobile have reached an agreement on the production of es8 for five years. In April 2019 and March 2020, Weilai automobile signed manufacturing cooperation agreements with JAC on ES6 and ec6 respectively.

In the first 36 months after starting production on April 10, 2018, we promise that if any operation loss occurs to Hefei manufacturing plant, we will bear the operation loss of JAC.

As of December 31, 2019, Weilai has paid to JAC six point zero four four 100 million yuan, including: total paid in 2018 and 2019 three point three three one 100 million yuan loss compensation, and two point seven one three RMB 100 million for manufacturing and processing.


In 2019, the capital chain of Yulai automobile was very tense. As of December 31, 2019, the cash and cash equivalents of Yulai automobile were 860 million yuan (about 123 million US dollars), and the same period of last year was 3.133 billion yuan. Restricted cash was 82.51 million yuan, compared with 57.01 million yuan in the same period last year.

In the fourth quarter of 2019, the company's net loss was 2864.6 million yuan (about 411.5 million US dollars), an increase of 13.6% on a month on month basis, down 18.2% on a year-on-year basis.

In 2019, the company's net loss not in accordance with the U.S. general accounting standards (non GAAP) was 2.813 billion yuan (about $404.1 million), up 14.8% month on month, down 16.3% year on year.

Active self rescue and holding Hefei thigh to alleviate the survival crisis

Therefore, in early 2020, Yulai actively rescued itself. From early February to early March, Yulai announced to issue a total of 435 million US dollars of convertible bonds to a number of unrelated Asian investment funds in the form of non-public issuance to support the company's daily operation and development.

On April 29, 2020, Weilai announced to sign the final agreement on investment in Weilai China with strategic investors such as Hefei Construction Investment Holding (Group) Co., Ltd., China Investment Management Co., Ltd. and Anhui Hi tech Industry Investment Co., Ltd.


According to the investment agreement, strategic investors will invest 7 billion yuan in Weilai China.

Weilai will inject into the legal body of Weilai China, Weilai (Anhui) Holding Co., Ltd., including core businesses and related assets such as vehicle R & D, supply chain and manufacturing, sales and service, energy service, etc. in China.

The above businesses and assets are valued at RMB 17.77 billion according to 85% of the average market value of the first 30 public trading days on April 21, 2020.

In addition, Weilai will invest 4.26 billion yuan in Weilai China. After the completion of the transaction, Weilai will hold 75.9% of the controlling shares of Weilai China, and the strategic investors will hold 24.1% of the total shares.

Wei Lai once negotiated cooperation with Beijing Yizhuang and Zhejiang, and finally held the thigh of Hefei. As of today, its market value is $3.689 billion, alleviating the survival crisis for a period of time.

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