Shulou(Shulou.com)12/24 Report--

CTOnews.com December 6 news, Xiaopeng announced tonight that Volkswagen's investment in Xiaopeng has been completed under the general authorization to issue a total of 94.079255 million new shares, with a total subscription of about US $705.6 million (CTOnews.com Note: currently about 5.052 billion yuan).

After the completion of the transaction, in Class A common shares, the ratio of Volkswagen Investment nominee shares is 4.99%, other shareholders account for 76.51% of Class B common shares 18.5%, and the total number of shares is 1.885 billion shares. Volkswagen Group won an observer seat on Xiaopeng's board of directors.

In addition, for the two B-class pure electric models jointly developed by Xiaopeng Volkswagen, officials say the feasibility study of the project has achieved positive results and has been completed.

The Board is pleased to announce that all the prerequisites set out in the share purchase Agreement have been fulfilled and that the investment has been completed on 6 December 2023 (the "completion") in accordance with the terms and conditions of the share purchase Agreement. A total of 94079255 Class A common shares ("subscription shares") (accounting for about 4.99% of the total issued and outstanding share capital of the Company immediately after completion) have been calculated at the purchase price of US $15 per American depositary share (based on the exchange rate of HK $7.8096 to US $1.00 per American depositary share representing two Class A common shares. Equivalent to HK $58.60 per Class An ordinary share) was successfully allotted and issued to Volkswagen Finance Luxemburg S.A., an affiliate of Volkswagen (the "Investor nominee").

In addition, according to the technical framework agreement signed with Volkswagen on strategic technical cooperation, Xiaopeng and Volkswagen have made significant progress in jointly developing two B-class pure electric vehicles. The feasibility study of the project has achieved positive results and has been completed. In addition, the two sides are actively evaluating more in-depth strategic cooperation in smart electric vehicle technology.

On July 26 this year, Volkswagen announced that it would inject about $700 million into Xiaopeng and hold a 4.99% stake in the company. When the deal is completed, Volkswagen will be given an observer seat on Xiaopeng's board of directors.

In the early stages of the cooperation, the two sides plan to jointly develop two Volkswagen brand electric models for China's medium-sized car market, and plan to enter the market in 2026.

Talking about the cooperation model between the two sides, Xiaopeng said that Volkswagen based on Xiaopeng G9 platform, hardware to software, to create two B-level SUV. Xiaopeng provides the platform and technology, Volkswagen does engineering R & D, design and manufacturing.

"very few Chinese car factories have full stack self-research companies. We are one of them, so we can cooperate with Volkswagen. This is a recognition of our very high technology. In the past, the market did not value our technology too much. We always thought our technology was of high value." Xiaopeng said that the realization of technology has always been the direction that Xiaopeng wants to achieve, and this time it has landed on the ground. In 2024, it began to enter the era of technical service income, which is an important inflection point for the company's technological realization, and the reference of technical service income to Xiaopeng's valuation has also changed greatly.

"We do technology and platforms. Our investment is relatively light assets, and they are all things that have been mass-produced. This piece of software is also easier to copy, so it is high gross margin." Xiaopeng said, but the exact pricing of hardware and software, Xiaopeng declined to disclose on the grounds of confidentiality agreement.

In addition to the planned new models, Xiaopeng also said that Xiaopeng will also launch "updated versions of current models" next year. "We expect these new models to bring more favorable gross margins. This will also help to improve our profitability and product portfolio."

Related readings:

Xiaopeng Automobile: will jointly develop two B-class pure electric models with Volkswagen, and explore cooperation in supply chain and other fields.

"Volkswagen has increased its investment of US $700 million to Xiaopeng Motor to jointly develop electric vehicles for the Chinese market."

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