Leapmotor successfully raised 6 billion in Hong Kong stock IPO, and its market value evaporated by 22.4 billion just after listing

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Text | Jia Haonan from Fujia Temple

Source: Smart Car Reference

Zero run issued a new car!

Zero Run is on the market!

Zero run broke…

Three things happened one after another within 24 hours.

The fourth new force that landed ashore had ups and downs on the first day.

The sales momentum of Leap Run is booming, why does it still break?

Are the new forces that have not yet landed behind them already shivering?

Leaprun’s first day of listing

Leapmotor was listed on the Hong Kong Stock Exchange today with an issue price of HK$48 and a net fundraising of HK$6.057 billion.

According to this issue price, the opening market value of Leaprun is 57.5 billion yuan (RMB).

However, after the opening bell, Leaprun’s stock price fell sharply.

The opening price was HK$41, down 14.5% from the issue price.

Subsequently, the decline once expanded to nearly 40%. As of press time, Leaprun’s share price was HK$29.3.

The market value is only 34.53 billion yuan, down 40%.

When Leapmotor’s IPO was heard on the Hong Kong Stock Exchange, we introduced the important management and shareholders of Leapmotor.

Among them, founder and CEO Zhu Jiangming, combined with his family members and indirect holdings, has a total of 16.33% of the shares of Lingpao.

Before the market opened today, Zhu Jianming still had at least the 9.4 billion yuan worth that Leap Run brought him.

And now, his wealth has evaporated by 3.76 billion yuan.

Another core figure of Leaprun, Fu Liquan, is the executive director and a close comrade-in-arms of Zhu Jiangming in the period of security giant Dahua. He also formed the largest holding group with Zhu and acted by consensus.

Fu’s entire shareholding ratio is 14.68%.

At present, his wealth has also evaporated by 3.376 billion yuan.

Of course, as the founders and actual business controllers, Zhu and Fu will naturally not sell large sums of money to cash out. Moreover, when Dahua was founded before, they have long achieved financial freedom.

The first day of listing was unfavorable, and the most injured were actually a group of cornerstone investors.

The top ones are Zhejiang Province, Jinhua City, Jinkai Leading Fund, GF Fund, and Cathay Oriental. Five institutions subscribed for a total of US$308.5 million.

Cornerstone investors in Hong Kong stocks are required to subscribe for shares at a price not lower than the issue price.

Therefore, these investors who bet on Leaprun, whether from the official background or other institutions, lost about 1.2 billion at the opening.

This situation is completely opposite to the grand occasion when Wei Xiaoli went public.

In fact, Leapmotor’s sales performance has grown by leaps and bounds this year. Just last night before the launch of the market, it just released a new model.

Zero-run new car, what’s the situation?

Leapmotor C01, with a wheelbase of 2930mm, is positioned as a medium and large sedan. In terms of size, it is comparable to the Mercedes-Benz C-Class.

But the price is much cheaper than C-class, 193,800-286,800.

In fact, the C01 is a twin model with the same platform and the same architecture as the C11 that was launched and delivered not long ago.

What is the positioning of Leaprun C01? Zhu Jiangming said it clearly last night: smart luxury cars.

In terms of price, the competitors are Xiaopeng P7, BYD Han, and Seal.

But from the configuration point of view, “it does not lose the BBA at the price of 400,000”.

The chassis adopts the front double-wishbone and rear five-links. On the interior, the suede roof is all standard, and the 300,000 or even 400,000 class is the only one.

The seats can be ventilated, heated and have a massage function. The boss seat in the rear can also be adjusted with one button to adjust the sitting position and angle.

The differentiated advantage of Leaprun C01 lies in the intelligent configuration of technology.

It is the first time at the same level to be equipped with an Android virtual machine. Most Android applications on the market can be installed and used on the car, including takeaway applications, etc., which can be used on the car.

Because it is an Android virtual machine, it does not occupy additional memory of the car and will not affect the safety of the assisted driving function.

The assisted driving capability is the Leapmotor Pilot intelligent driving assistance system that Leapmotor claims to be full-stack self-developed. The whole system comes standard with 26 sensing hardware, including 9 cameras covering 360° of the body, 5 millimeter-wave radars, and 12 ultrasonics. radar.

As for the underlying computing power, it comes from Lingxin 01, a self-developed chip of Zero Run, with a computing power of 8.4TOPS.

In terms of specific functions, all L2 assisted driving projects have been realized, including HWA high-speed assisted driving, ACC full-speed adaptive cruise, TJA traffic jam assist, ALC automatic lane change assist, SDIS narrow lane assist system, AEB automatic emergency braking, AR navigation, etc. Wait.

From an objective point of view, let’s summarize the new Leapmotor C01:

The exterior and interior design is in place, and intelligent driving does not pull the crotch.

From the perspective of previous models, the expected value of specific work materials and mechanical quality may be limited.

The biggest selling point is actually to drive the Mercedes-Benz C-class sedan home at a price of 200,000.

The C01 is not amazing, but it can be seen that this is the best model that Leapmotor has worked hard to build so far, and the passing line must have been passed.

Zero run, is it good or bad?

Generally speaking, when a new company goes public, it will agree with its shareholders and investors on the earliest date of release, in order to prevent a chain reaction caused by a large number of stocks being sold off in a short period of time.

Zero Run should have done the same.

However, the breakout drop on the first day of Leaprun’s listing was far beyond normal.

CEO Zhu Jiangming just responded:

“It is indeed a not very good time period, because the global situation is volatile and it is in a downward channel. But we chose to list (listing), the main reason is that we don’t care about the current time period, this is a long run. What we care more about is the real How about the quality, get our market share as soon as possible.”

The bad environment is indeed a factor when the zero run is listed on the market.

In addition, the obvious reason is that since this year, the valuations of new car manufacturers have generally adjusted back.

The evaluation system for these new forces in the secondary market and investors has gradually moved closer to the essence of “automobile companies”.

As for Leapmotor itself, although sales have taken off, its problems are also obvious.

Small cars, less R&D, and low profits.

At present, the largest total delivery of Leapmotor is a mini-car T03, which is about 70,000 yuan, dubbed “Old Man Le”.

This naturally brings about the status quo that zero-run profit is meager, and gross profit cannot be turned positive for a long time.

The origin of making small cars can be traced back to the historical situation of insufficient financing since the establishment of Leapmotor 8 years ago.

In 8 years, the total financing was only more than 11 billion yuan, which is only 1/3 or even less than other new forces.

Therefore, Leapmotor can only rely on mini-cars to open up sales to win survival opportunities and capital market attention, and then develop slowly.

Therefore, the C01 and C11 models represent the next stage of Leaprun, entering the mainstream market, and at the same time shouldering the heavy responsibility of reversing profits.

And if the C01 or C11 models can be successful, Leapmotor’s “full-stack self-developed” technical strength will also make a qualitative leap.

The listing of Leap Run is one aspect, but the greater significance is to set a pattern for other new forces that have not yet landed in the future.

As a “late mover” and a new force that has never been well-off, Leapmotor was the first to log in to Hong Kong stocks after Wei Xiaoli. The core reason is that it is serious about building cars, and the core technology is self-developed.

Moreover, China’s new forces or traditionally transformed car companies, including Leapmotor, are constantly rolling in under the wave of smart cars, bringing more technological and cost-effective products to the market one after another.

It’s a bonus, for users like you and me.

It is also a dose of medicine that cures some “bad ailments”. You must know who it is.


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