Original title: Weilai automobile plummeted 28%: a huge loss of 40 billion in three years, and the earnings call was suddenly cancelled
According to Beijing time on the 25th, the shares of Weilai Automobile Company (NiO) closed down 20.22% to $2.17, plunging more than 28% in the session, hitting a record low of $1.97. After encountering the storm of car recall and continuous layoffs, Weilai released the financial report for the second quarter of 2019. According to the announcement, the company's net loss in the second quarter increased by 83% year-on-year to RMB 3.29 billion (US $462 million), which is lower than the estimated average of RMB 2.6 billion of two analysts surveyed by Bloomberg, and the second highest net loss of the company since records began in 2017.
Another loss of 3.3 billion in the second quarter: a huge loss of 40 billion in three and a half years
Weilai automobile released its second quarter financial report, with a revenue of 1.508 billion yuan in the second quarter and a market expectation of 1.309 billion yuan, up from 46 million yuan in the same period last year; In the second quarter, the net loss attributable to shareholders was 3.285 billion yuan, the market expected loss was 2.944 billion yuan, and the loss in the same period last year was 6.11 billion yuan.
In the fiscal year of the first half of 2019, Weilai's loss has reached 5.937 billion yuan (2.652 billion yuan in the first quarter and 3.285 billion yuan in the second quarter); In the three years from 2016 to 2018, Weilai's losses were 3.518 billion yuan, 7.562 billion yuan and 23.328 billion yuan respectively; The total loss in three and a half years reached 40.345 billion yuan.
A record low was recorded in the session, and the listing price fell 65% compared with the issue price one year
Velai once fell nearly 28% in the U.S. market, the largest decline on record and hit a record low of $1.97. It closed down 20.22% to $2.17.
In November 2014, Weilai was jointly founded by top Internet companies and entrepreneurs who deeply understand users, such as Li Bin, Liu qiangdong, Li Xiang, Tencent, Hillhouse capital and Shunwei capital, and was invested by dozens of well-known institutions, such as Temasek, baidu (US stock BIDU) capital, Sequoia, Hopu, Lenovo group, Warburg Pincus, TPG, GIC, IDG and pleasure capital.
After many top Internet Celebrities took shares, Weilai automobile landed in US stocks on September 12, 2018, raised US $1 billion and sold 160 million shares at US $6.26 per share, but this was lower than the expected US $1.8 billion. However, one year after Fengguang's listing, Weilai's share price fell to only $2.17, down 65% from the issue price of $6.26.
It is noteworthy that cost overruns, weak sales and major recalls have led to a sharp decline in Weilai's share price compared with when it was listed in the United States more than a year ago.
The company's difficult situation has raised concerns that China's subsidies to the electric vehicle market have increased the bubble and are at risk of breakage.
Jason Chen, an analyst at blue lotus capital advisors Ltd., said people were wondering whether the company could continue to survive.
Negative news continues
Let's review the recent events in Weilai. In June, on the eve of the decline of subsidies, Weilai announced the recall of 4803 es8. Then came the news of Weilai selling formula e team. On August 22, Li Bin, founder and CEO of Weilai, issued an internal letter, announcing that Weilai would cut jobs in September, reduce 1200 jobs worldwide, and adjust the company's personnel size to about 7500. On September 5, Weilai automobile announced that it had reached a convertible bond subscription agreement with Li Bin and Tencent holding subsidiaries. According to the agreement, Li Bin and Tencent will subscribe for the principal of US $100 million of convertible bonds respectively, with an average subscription of two times each.
About a year ago, the market value of Weilai reached a record $11.9 billion. However, cost overruns, weak sales and recalls have led to a 74% drop in the market value of velai since then. " This year and next, these electric vehicle start-ups will usher in a big reshuffle. " Analyst Siyi mi (transliteration) said, 'it was VCs looking for them before, but now it's not the case.'
It is noteworthy that Weilai's latest announcement said that the 2019 second quarter earnings conference call originally scheduled to be held at 8 a.m. Eastern time was cancelled, and Weilai did not explain the reasons for the cancellation in the announcement. This Wei back and forth should say that the conference call is generally a supplement to the quarterly report. We believe that the quarterly report has fully covered the information to be disclosed at present. If the company has other major events, it will be disclosed again in the form of announcement.