Weilai is the first new car maker in US stock IPO, but the rhythm of returning to Hong Kong for listing has been later than ideal car and Xiaopeng car.
21st Century Business Herald reporter Zuo Maoxuan reported that according to media reports, Weilai automobile, a new force in China’s Internet car making, may postpone its listing plan back to Hong Kong until next year. Wei Lai did not comment.
At the beginning of this year, Weilai automobile, ideal automobile and Xiaopeng automobile, the new forces of Chinese car making that have been listed in U.S. stocks, successively announced plans to return to Hong Kong for listing. Among them, Xiaopeng automobile and ideal automobile have officially landed in Hong Kong stocks in July and August respectively, and landed in Weilai of the New York Stock Exchange as early as 2018.
It is reported that Weilai automobile submitted an application for secondary listing on the Hong Kong Stock Exchange in March this year, but it is unlikely to be listed on Hong Kong stocks before the beginning of next year. Weilai automobile has received inquiries from the Hong Kong Stock Exchange about its structure, including the user trust fund established in 2019.
It is said that it is the user trust fund that hinders Weilai’s Hong Kong stock listing plan.
In January 2019, Weilai user trust was officially established. Li Bin took out one-third and 50 million Weilai shares he held and handed over his right to dispose of the proceeds to the user under the condition of ensuring the voting right. There are four directions for the use of the trust fund income, including public welfare, environmental protection, operation and maintenance and “projects deemed necessary by the community”.
With the sharp rise of Weilai’s share price in the past two years, the market value of the trust fund has also risen. According to Weilai’s current share price of $38.45, the market value of the trust fund is about 1.923 billion yuan.
According to the articles of association, the initial trust assets are 50 million shares, and no more than 5% can be sold in each financial year. In other words, according to the current market value, the total amount of disposable funds is close to US $100 million.
However, according to the financial briefing of Weilai user trust in 2020, the total budget in 2020 is only 6 million yuan. The total expenditure of the whole year includes 4.66 million yuan, including family care during the epidemic, anti epidemic medical care and owner’s anti epidemic package, leaving a balance of 1.34 million yuan.
User trust gives Weilai users the opportunity to discuss and suggest how to use the resulting benefits, but when and where these shares are sold will have a certain impact on Weilai. In this regard, Weilai needs to make a clearer plan.
Reprint indicated source：Spark Global Limited information