At the moment when 20 19 is coming to an end, Weilai Automobile finally "lifted its head", and Li Bin, who was once ridiculed as the worst person in 20 19, began to appear in the spotlight-Weilai Automobile's financial report in the third quarter exceeded expectations, and its revenue increased by 25% year-on-year. As soon as this financial report came out, the secondary market cheered, and Weilai Automobile rose fiercely, and its share price soared by 66% in two trading days.
Capital has been suppressed for too long, and finally Weilai Automobile "broke through" from the cry of delisting red line, and its share price soared from 1. 19 to more than 4 dollars. However, according to the observation of Lv Fei Automobile, at present, for Weilai Automobile, on the one hand, it is a carnival in the secondary market, on the other hand, it is still a continuous loss, and its future is unpredictable.
As of 65438+10.7, Lv Fei Automobile issued a press release, and Weilai Automobile's share price closed at $3.68, down 3.92% from the previous trading day. Going back, 65438+ US time1October 3, Weilai Automobile closed at $3.83, with a market value of about $4 billion. On the previous trading day, the pre-market plunge once exceeded 8%, and the closing decline was also 7.46%.
The fatigue is beginning to appear, then, will Weilai's carnival in the capital market be just a kind of greed?
Loss of "exceeding expectations" performance
The capital market is cruel and even crazier. The most direct indicator of market sentiment fluctuation is performance. This round of "riots" of Weilai Automobile is the best witness.
65438+Before the closing of the US stock market on February 30th, Weilai Automobile released its unaudited third-quarter financial report. The data shows that the company's total revenue in the quarter was 65.438+0.837 billion yuan, an increase of 265.438+0.8% from the previous month and a year-on-year increase of 25%. The cost-cutting measures taken by Weilai, including layoffs, reduced the net loss in the third quarter to 2.52 billion yuan, down 23% from the second quarter, down 65,438+00.3% from the same period last year and up 3.65,438+0% from the same period last year.
Perhaps people have become accustomed to Weilai's loss situation, even if it is still a loss, when the amount of loss has narrowed, it has become the "light" of capital. Therefore, after the release of the third quarterly report that Weilai Automobile was still "losing money", the secondary market started a large-scale rising market-65438+February 3 1 closed at 4.02 USD, rising 66% in two days, and the intraday increase once exceeded 100%.
In the third quarter of this year, Weilai delivered 4,799 vehicles, an unexpected increase of 35. 1%. Among them, ES8 delivered 603 vehicles; ES6 delivered 4 196 vehicles. In the second quarter, Weilai delivered 3,553 cars. As of September 30th, 20 19, the total amount of cash, cash equivalents, restricted cash and short-term investments held by Weilai Automobile was 65.438+96 billion yuan.
In addition, Weilai's sales and management expenses in the third quarter were 65,438+065,438+64.4 million yuan, a decrease of 65,438+08.1%from the previous month and a decrease of 30.3% from the same period last year. In the third quarter, R&D expenditure was 65.438+0.0232 billion yuan, a decrease of 265.438+0.3% from the previous month, which was basically the same as that of 2065.438+08 in the same period.
Li Bin, the founder, chairman and CEO of Weilai, the "worst person in 20 19", interpreted the "exceeding expectations" performance in the third quarter as follows: on the one hand, its products were competitive, on the other hand, it benefited from the expansion of sales network and the gradual formation of user groups.
According to the data, by the end of 20 19, Weilai will have 22 Weilai centers and 48 Weilai spaces covering 52 cities. Li Bin said that in the second half of 20 19, Weilai Automobile further expanded its sales network, established a reputation among users and increased Weilai space, which was conducive to the continuous increase of orders.
It is worth mentioning that this is the first financial report of Wei Wei, the chief financial officer of Weilai. Feng Wei said that Weilai implemented comprehensive cost control measures within the company in the third quarter to optimize operational efficiency. At present, efforts are also being made to formulate an annual budget for 2020, with plans to further improve efficiency. R&D expenditure will be further reduced.
Insufficient balance in 2020
A quarter of recovery doesn't seem to be worth cheering about. Because investors are more concerned about whether the rebound in performance can be sustained. In the conference call after the financial report was released, Weilai's management faced torture from more than one analyst and investor.
12 On the evening of February 30th, Weilai Automobile released its third-quarter financial report, and at the same time issued a going concern warning. The company's cash balance is not enough to provide the working capital and liquidity needed for continuous operation in the next 12 months. Sustainable operation depends on whether the company can obtain sufficient external equity or debt financing.
"The improvement of gross profit is a very important task for us in 2020. We are fully confident that the gross profit will turn positive throughout the year. " Li Bin, who thinks it is out of the dark moment, has started a new round of self-confidence. "From the competitive map in 2020, at least I haven't seen particularly competitive products."
Even so, as a startup company, Weilai's losses can be described as "high debts". According to the annual report of Weilai Automobile in the last three years, the net loss of Weilai Automobile in 20 16-20 18 was 2.573 billion yuan, 5.0265438 billion yuan and 9.638 billion yuan respectively. Together with the losses reported in the first three quarters of 20 19 just disclosed, the loss amount of Weilai Automobile has reached 2500.
Previously, when Weilai released the second quarter financial report, the net loss attributable to shareholders was 3.285 billion yuan. At that time, some institutional analysts said that the cumulative loss of Weilai Automobile in less than five years exceeded the loss of Tesla 15 years, and Tesla's current market value was about 75 billion US dollars.
The company's third quarterly report shows that Weilai Automobile is currently arranging a number of financing projects, and whether it can be completed will depend on some uncertain factors. Feng Wei also said that financing matters are still in progress. Although cash is a challenge, based on the current good sales momentum, the cash obtained from sales is still relatively healthy.
2065438+On February 30, 2009, 65438+2009, Weilai Capital announced the completion of the first US dollar fund raising, with a total amount of more than 200 million US dollars. This fund has attracted the support of many top global investors, including sovereign funds, overseas pension funds, overseas insurance institutions, parent funds, well-known multinational enterprise groups, family funds and other first-class investment institutions and industrial capital.
In the past year, Weilai Automobile walked in the automobile market under great pressure. Large-scale layoffs, cash flow emergencies, security issues, vehicle recalls, subsidies decline, etc. It seems that you can break a string at will and let Wei Lai's "empire" collapse. These problems have not been completely solved so far.
Weilai Automobile really shouldn't be complacent because of the "progress" in a single quarter. CICC once said in the research report that Weilai still needs to raise about10 billion yuan every year in 20 19 and 2020 to ensure that part of the cash balance is reserved at the end of the year, and it is not until around 2022 that the company is expected to realize free cash flow to turn losses.
Back to the level of capital carnival, is it a disaster or a feast for an uncertain enterprise? Is it a roller coaster of the market or a reflection of value investment?
Wei lairi 20 19 (NIO? Day? The theme of 20 19) is "believe? Are you online? Better? " It means you'd rather believe it I hope so.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.