Xpeng Motors submitted IPO prospectus, plans to list on the New York Stock Exchange


In the early morning of August 8, Beijing time, Xpeng Motors formally submitted IPO documents to the SEC. It plans to be listed on the New York Stock Exchange under the stock code “XPEV”. The underwriters include Bank of America Securities, Credit Suisse, and JPMorgan Chase. Xpeng’s IPO prospectus mainly discloses the following key data:

As of the end of July 2020, the cumulative delivery of Xpeng G3 is 18,741; the delivery of Xpeng P7 has reached 1966, of which the monthly sales volume in July was 1641. As a result, the cumulative delivery of Xpeng Motors has reached 20,707 vehicles.

In terms of revenue, Xpeng Motors’ revenue in 2019 was 2.32 billion yuan, its R&D investment that year was 20.7 billion yuan, and the annual net loss was 3.69 billion yuan. In the first half of 2020, Xpeng Motors’ revenue was 1.003 billion yuan, which was down from 1.23 billion yuan in the same period last year. The main impacts were as follows: First, the orders in the whole year of 2018 of its first EV, Xpeng G3, was finished delivery in the Q2 quarter of 2019, as a result, the base number is relatively high; secondly, automobile sales in the first half of 2020 was negatively affected by the COVID-19. The Xpeng P7, which was just launched in May 2020, sold 1,641 units in a single month in July. The prospectus stated that the car will become one of the main models that will drive revenue growth.

As for the cash portion, as of the second quarter of 2020, the total cash assets on the account of Xpeng Motors amounted to 2.188.3 billion yuan. In addition, Xpeng Motors completed C+ and C++ rounds of financing in July and August, with a total amount of more than US$947 million. Before the IPO, Xpeng Motors expects to hold more than 9.5 billion yuan in cash assets.

Before the IPO, the management of Xpeng Motors held 40.9%, of which He Xiaopeng held 31.6% as the largest shareholder, and Alibaba held 14.4% as the largest external shareholder. Other shareholders included Xiaomi, GGV, and Morningside Capital, Hillhouse, Sequoia, Qatar Investment Authority, etc.

Xpeng P7

From a product perspective, Xpeng Motors currently has launched two models, G3 and P7. The prospectus disclosed that Xpeng Motors plans to launch a smart electric compact car in 2021. As of June 30, 2020, Xpeng Motors has a total of 147 experience stores across the country, covering 52 major cities across the country. Xpeng G3 is jointly produced by Xpeng Motors and Haima Motor. In addition, Xpeng Motors has established its own factory in Zhaoqing, Guangdong. The annual production capacity of the two factories is 150,000 and 100,000 respectively.

After the launch of Xpeng G3 and P7, Xpeng Motors “finally” submitted an IPO prospectus and prepared to go public. In fact, Xpeng Motors completed two rounds of financing in July and August, and the cash on the account was relatively sufficient, which also made this IPO more confident. Xpeng Motors is the third Chinese carmaker startup to be listed, and we also expect it to perform well in the stock market in the future.