AutoBeta(AutoBeta.net)03/19 Report--

On the evening of March 18, Xilai released its results for the fourth quarter of 2019, which showed that its operating income in the fourth quarter was 2.85 billion yuan, compared with 3.436 billion yuan in the same period last year, down 17.1 percent from the same period last year. The net profit loss in the fourth quarter was 2.865 billion yuan, down 18.2% from the same period last year. In 2019, the operating income of Lulai Motor was 7.825 billion yuan, an increase of 58.0% over the same period last year. In 2019, the net profit loss was 11.296 billion yuan, an increase of 17.2% over the same period last year.

In terms of sales, Xilai delivered a total of 20565 vehicles in 2019, an increase of 81.2% over the same period last year. Of these, a total of 8224 vehicles were delivered in the fourth quarter, an increase of 3.06% over the same period last year.

The growth of sales is a double-edged sword for NIO Automobile. NIO Automobile has not yet formed the ability of self-hematopoiesis, and it is still in the awkward situation of "losing one for each". Li Bin said that as of December 31, 2019, the cash balance held by Xilai was no longer sufficient to provide the working capital and liquidity needed for continued operation for the next 12 months.

However, this grim situation will be alleviated to some extent. In 2020, Xilai announced three financing developments in three months.

On February 6 and 14 this year, Xilai announced the completion of convertible bond financing projects of US $100 million each, with a cumulative financing amount of US $200 million. The investors are all Asian investment funds and are all "unrelated parties." On March 5, Xilai Motor announced the completion of another 235 million yuan convertible bond financing project, invested by several Asian investment funds, all of which are "non-related parties." So far, Xilai Automobile has completed a total of 435 million US dollars convertible bond financing projects in the first quarter of 2020.

Xilai has also received financial support from the government. On February 25th, Xilai signed a framework agreement with Hefei, raising more than 10 billion yuan to set up its China headquarters, set up a research and development, sales and production base, and launched a mass production project for EC6.

In addition, in January, there was news that GAC GROUP planned to invest 1 billion yuan. GAC GROUP responded that he was indeed discussing financing with NIO, but it was still in the preliminary stage, and the maximum financing would not exceed US $150 million. However, there is no relevant information about GAC's investment.

In February, it was reported that Geely plans to invest 2.1 billion yuan to buy a stake in Xilai Automobile. Li Bin said on the day Hefei signed the agreement that "I don't know where the rumor came from and will not comment on it." At this point, Geely's stake in NIO ended in rumors.

The sudden epidemic has had a great impact on the car company. According to the sales volume announced by Xilai, 707 new cars were delivered in February this year, down 11.47% from a year earlier, of which 671 were delivered by ES6 and 36 by ES8. From January to February this year, a total of 2305 cars were delivered.

Affected by the epidemic, Lailai expects delivery of between 3400 and 3600 vehicles in the first quarter of 2020, down about 56.2-58.7 percent from the previous month and 9.8-14.8 percent from the same period last year. The total income was between 1.209 billion yuan and 1.273 billion yuan, a decrease of about 55.3% to 57.6% month-on-month and 21.9% to 25.9% lower than the same period last year.

Gross profit margin in the fourth quarter of 2019 was-8.9%, down 9.3% from a year earlier, and gross profit margin in 2019 was-15.3%, down 10.1% from a year earlier, according to data from the financial report. Gross profit margin has declined in both the fourth quarter and 2019. How to increase gross profit margin is also a big problem for Lulai Motor. However, Li Bin said on a conference call that with the optimization of the supply chain, the continuous reduction of battery package costs, the increase in production scale and the reduction of vehicle manufacturing costs brought about by management optimization, the company expects to achieve a positive gross profit margin in the second quarter. Gross profit margin is expected to achieve double-digit growth at the end of the year.

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