Li Bin: Weilai will not follow Teslas price reduction to terminate Shanghais plant construction plan

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 Li Bin: Weilai will not follow Teslas price reduction to terminate Shanghais plant construction plan


Li Bin of Weilai Automobile said that the sharp price reduction of its rival Tesla would be harmful to the brand, and we will not reduce the price.

Weilai CFO said it had recently terminated its plan to build a factory in Jiading, Shanghai. This decision is mainly based on two reasons. Because in 2019, the Chinese government has introduced some new policies to encourage vehicle manufacturers and R&D institutions. Enterprises like us can further develop vehicles through cooperation. In addition, we can make better use of our factories in Anhui and produce the corresponding models in the past two or three years. We hope that we can further carry out vehicle production by joint venture with Jianghuai.

On March 6, Weilai Automobile released its fiscal fourth quarter and full-year results for fiscal year 2018 up to December 31. According to the financial report, the total revenue of Weilai Automobile in fiscal year 2018 was 4.951.2 billion yuan, and the sales volume of Weilai Automobile was 4.852 billion yuan. Weilai Automobile delivered 7980 ES8 vehicles in the fourth quarter and 11348 ES8 vehicles in the whole year. Total revenue in the fourth quarter was 3.435.6 billion yuan, up 133.8% annually, and net loss was 3.503 billion yuan, up 24.6% annually.

In addition, Weilai Automobile cancelled Jiadings plan to build a factory. In 2017, Weilai Automobile signed a framework agreement and a memorandum of understanding with the government of Jiading District of Shanghai and relevant units to establish an advanced base for Weilai new energy electric vehicles. Recently, Weilai Automobile said it had reached an agreement with the main body concerned to stop the construction and design plan of the production base. The strategy focuses on the cooperation mode of vehicle manufacturing. It is believed that the existing Hefei Jianghuai Weilai Base can meet the production demand in the next two to three years.

After the announcement of the earnings report, Weilai automobile shares fell more than 14% to $8.65.

Fourth quarter results:

Total revenue in the fourth quarter was 3.435.6 billion yuan, an increase of 133.8% annually.

Gross profit margin was 0.4% in the fourth quarter and - 7.9% in the last quarter.

The profit margin of automobile sales was 3.7% in the fourth quarter and - 4.3% in the last quarter.

In the fourth quarter, the operating loss was 3.446.9 billion yuan, up 22.7% annually and 106.4% year-on-year. Based on non-U.S. General Accounting Standards, the operating loss of Ulai Automobile after adjustment in the fourth fiscal quarter was 3.305.2 billion yuan, an increase of 39.0% annually and 102.4% year-on-year.

The net loss in the fourth quarter was 3.503 billion yuan, up 24.6% annually and 106.1% year-on-year. Based on non-U.S. General Accounting Standards, the adjusted net loss of Ulai Automobile in the fourth quarter was 3.361.3 billion yuan, up 41.3% annually and 102.1% year-on-year.

The net loss attributable to common shareholders of Weilai Automobile in the fourth quarter was 3.516 billion yuan, a decrease of 64.0% annually and an increase of 26.4% year on year. Based on non-U.S. GAAP, the net loss attributable to common shareholders of Ulai Automobile in the fourth quarter was 3.342.9 billion yuan after adjustment.

In the fourth quarter, the basic and dilution losses per American Depository Stock (ADS) were RMB 3.37. Based on non-U.S. General Accounting Standards, the basic and diluted loss of ADS per share of Ulai Automobile after adjustment in the fourth quarter is 3.20 RMB.

Performance for fiscal year 2018:

The total revenue in fiscal year 2018 was 4.951.2 billion yuan.

The gross profit rate for fiscal year 2018 is -5.2%.

In fiscal year 2018, automobile sales amounted to 4.852 billion yuan, accounting for 98.0% of total revenue in fiscal year 2018.

The profit margin of automobile sales in fiscal year 2018 is -1.6%.

In fiscal year 2018, the operating loss was 9.595.6 billion yuan, an increase of 93.7% over the previous year. Based on non-U.S. General Accounting Standards, the adjusted operating loss of Ulai Automobile in fiscal year 2018 was 8916.1 billion yuan, an increase of 8.3% over the same period last year.

The net loss in fiscal year 2018 was 9.639 billion yuan, an increase of 92.0% over the previous year. Based on non-U.S. General Accounting Standards, Weilai Automobiles adjusted net loss in fiscal year 2018 was 8959.5 billion yuan, an increase of 81.7% over the same period last year.

In fiscal year 2018, the net loss attributable to ordinary shareholders of Weilai Automobile was 23.327.9 billion yuan, an increase of 208.5% over the previous year. Based on non-U.S. General Accounting Standards, the net loss attributable to common shareholders of Ulai Automobile in FY2018 was RMB 8917.8 billion.

The basic and dilution losses of US Depository Stocks (ADS) per share in fiscal year 2018 are 70.23 RMB. Based on non-U.S. General Accounting Standards, the basic and diluted losses of Ulai Automobiles U.S. Depository Stock (ADS) per share in fiscal year 2018 are 26.85 yuan.

As of December 31, 2018, the total cash, cash equivalents, restricted cash and short-term investment held by Ulai Automobile was 8.345.6 billion yuan.

Weilai Automobile expects the shipment of ES8 models to reach 3 500 to 3 800 vehicles in the first quarter of fiscal year 2019, a decrease of 52.4% to 56.1% annually, and total revenue in the first quarter of fiscal year 2019 will reach 1,399.9 billion yuan to 1,515.7 billion yuan, a decrease of 55.9% to 59.5% annually.

Source: First Financial Responsibility Editor: Yao Liwei_NT6056