China's Tesla XPENG successfully listed in US, Chinese industry strategy is in behind(美国新闻发布 发德国新闻)

发布日期:2020-09-07 09:51
On August 27th, US time, after NIO Inc (NIO.Nasdaq) and Li Auto (LI.Nasdaq) went public in the United States, Xpeng Motors was listed on the New York Stock Exchange with the listing ticker XPEV. After the first day of listing, the stock price continued to rise.(美国新闻发布 发德国新闻)

The total amount raised in this IPO is approximately US$1.5 billion, exceeding the maximum amount of US$1.271 billion estimated in the prospectus. It exceeded the 1.1 billion U.S. dollars at the IPO of Li Auto Inc last month and the 1 billion U.S. dollars of NIO Inc, far exceeding Tesla's 226 million U.S. dollars that year. Credit Suisse, JPMorgan Chase, and Bank of America Merrill Lynch are the lead underwriter, Tiger Brokers, Bank of China International and Agricultural Bank of China International were among the underwriting group. (美国新闻发布 发德国新闻)

Tiger Brokers contributed not only a total of US$2.4 billion in orders, but also introduced multiple strategic investors to the Xpeng Motors. It is notable that Tiger's actual allocation this time ranked first among all global Internet brokers. In addition, Tiger Brokers is also the only investment bank who underwrites both Li Motors and Xpeng Motors.(美国新闻发布 发德国新闻)

Xpeng Motors is China's leading smart electric vehicle design and manufacturer, and a technology company integrating cutting-edge Internet and artificial intelligence into its vehicles.(美国新闻发布 发德国新闻)

As of the end of July 2020, Xpeng Motors has delivered a total of 20,707 vehicles. Xpeng Motors is also the only OEM manufacturer who invests in R&D of full-stack autonomous driving (excluding chips and radars) and has established a team of talents since 2015.

"U.S. investors are extremely optimistic about the prospects of new energy vehicles in the Chinese market. It may be too early to judge which company can stand out from the crowd. But as China becomes one of the world's largest electric vehicle manufacturers in the future, if a company can be in China winning the market share, it represents a huge room for financial growth." Said by the head of IBD of Tiger Brokers.

Recalling the initial acquaintance with Mr. He Xiaopeng and then witnessing Xpeng’s listing in U.S., Wu Tianhua, the founder and CEO of Tiger Brokers, expressed with emotion, "Tiger Brokers and Xpeng Motors are both companies invested by Xiaomi Group. There was contact with Mr. He Xiaopeng at the meeting. Although Mr. He Xiaopeng had no specific listing plan at the time, because everyone was in the new era of Chinese economy and focused on technology research and development, there was a lot of common interest and thoughts to share with each others. Based on the trust established in the early stage, adding the track record and reputation Tiger Brokers accumulated in Investment Banking over the past years, Tiger was soon added into Xpeng Motor’s underwriting group."

"Tiger harbors a pure thought to become a long-term strategic partner of all new economy companies. ThereforeTiger Brokers has introduced several strategic investors for Xpeng Motors before its IPO.“One of our institutional client is very optimistic about Xpeng Motors, and the client itself manufactured solid polymer batteries. For related investments, during a conference call with Xpeng’s management, Tiger lined up both companies for their future cooperation.
Before founding Xpeng Motors, Mr. He Xiaopeng had a 13-year entrepreneurial experience in startups.

Back in 2004, 27-year-old He Xiaopeng left his company where he had worked for 6 years, and start his own business. He brought together his university alumni Mr. Liang Jie and founded UC Youshi, a mobile internet service provider.

In 2014, the 10-year-old UC was sold to Alibaba for US$4.35 billion, which was the highest M&A deal in the history of China’s Internet world at that time. Overnight, 37-year-old He Xiaopeng achieved the financial freedom.

On February 16, 2017, Mr. He Xiaopeng's son was born. As a new father, He Xiaopeng had a deeper and different feelings in his heart: "Should I do something that will make my son more proud and happier? And maybe I should go out of my comfort zone and look for a bigger challenge." Said by Mr. He.

Mr. Yu Xinhua, the partner of IDG Capital, recalled to the investment community: “Before investing in Xiaopeng, we had already done deeply and comprehensive research in the travel industry. We hope to invest in a “future and change-oriented enterprise”. Xpeng is the kind. “Automobiles are not only a means of transportation, but also a platform. The entry barrier is extremely high. People from Internet industry are more disruptive and creative and are possible to achieve something big and different”Said by Mr. Yu.

Capital standing behind Xpeng Motors are IDG Capital, Morningside Capital, GGV Jiyuan Capital, Chunhua Capital, Jingwei China, Sequoia China, Hillhouse Capital, Lightspeed China, Zhongding Capital, Yunfeng Fund, Kunzhong Capital, Shunwei Capital, etc., There are also industry giants such as Alibaba and Xiaomi Group invested in Xpeng..

Following the listing of Xpeng Motors, the three major Chinese new carmakers all landed on the US stock market. Behind this is China's national level industrial innovation strategy.

The global automobile industry has developed for more than 150 years, but Chinese automobiles companies have only developed for a few decades. Private sector entered this industry has only slightly more than 10 years’ history.

If a brand wants to break through in the market, it is tantamount to advancing in the rain of bullets and copper walls. You may imagine the difficulties. What is worse is that companies in the industry must follow the rules set by the western, which makes the breakthrough even harder.

However, the automobile industry is a so called 1:10 industry, that is, the output of one unit of the automobile industry can drive an overall increase of 10 units of output in all related industries in the entire national economy. The multiplier effect in other industry is incomparable to the automobile industry. The development of the automobile industry has driven the development of upstream raw material industries such as steel, petrochemicals, non-ferrous metals, plastics, rubber, and glass; in the midstream manufacturing process, the automobile industry has brought considerable benefits to industries such as mechanical electronics, CNC machine tools, and automated production lines. ; In the downstream industry, the automobile industry has effectively stimulated logistics, finance, insurance, sales, advertising and other service industries.

In addition, China has become the world's second largest oil consumer after the United States. Its dependence on foreign oil exceeds 70%. And the fuel consumed by automobiles accounts for 30% of China's total oil consumption. The investment in new energy vehicles has strategic meaning for China's s energy security.
For Xpeng Motors, the market is far from being successful in the true sense, and this is just a new start. And how Xpeng promised the market that he will be "all in the next decade" is worth all our expectation.