The monthly average loss 100 million Lantu listing capital increase, financial is expected to improve, market-oriented operation intentions are obvious

[Text/Brother Dao said the car, listening to the wind] Not long ago, "Brother Dao said the car" learned from informed sources that Lantu Auto has now left its swaddling clothes, used equity funds to operate, and began to capitalize. The A round of financing will be announced soon. Unexpectedly, this news was soon verified.

On August 1, the capital increase project of Lantu Automobile was pre-disclosed on the Shanghai United Equity Exchange. The pre-disclosure announcement did not announce key capital increase targets such as "total amount of proceeds raised" and "new investors’ proposed shareholding ratio", but mentioned that the purpose of proceeds raised is to "support the company’s strategic layout, enhance the competitiveness of enterprises, and focus on the development of the company’s main business". It is reported that this capital increase is the first external equity financing since the establishment of Lantu Automobile.

It is worth noting that, according to the pre-disclosure announcement, Lantu Auto’s current loss is relatively large, with an average monthly loss of more than 100 million yuan. At the same time, the sales of Lantu Auto are not good. For Lantu Auto, which operates with equity funds, this capital increase is tantamount to a timely rain. Zhang Xiang, a visiting professor at the Yellow River University of Science and Technology, told the editor of "Brother Dao Talk Car" that this capital increase will undoubtedly be of great help to Lantu Auto’s financial situation. Few start-up car companies in the early stage can make money, and the risk of capital chain breakage caused by the lack of external blood transfusion is huge.

Average monthly loss of 100 million yuan, Lantu Auto increases capital to improve finance

Looking at domestic and foreign start-up auto companies, due to the huge investment in the early stage, there are almost no car companies that achieve profitability in the early stage, and Lantu is also moving forward in losses. The disclosure announcement shows that Lantu Auto’s operating income in 2021 was 1.766 billion yuan, and the net loss was 706 million yuan; the operating income in the first half of this year was 1.886 billion yuan, and the net loss was 737 million yuan.

That is to say, from June 26, 2021 to June 30 this year, Landmap Auto has a cumulative net loss of 1.443 billion yuan in one year. Of course, this is not surprising. At present, none of the new car-making forces represent NIO, Xiaopeng, Nezha, Zero Run and other enterprises have achieved profitability. Landmap’s current loss is also expected.

However, compared with the sales of other start-up new energy vehicle companies, Lantu’s sales have always been in a weak position. In the first half of this year, Lantu’s cumulative delivery volume was 6878 vehicles, with an average monthly delivery of 1146 vehicles. This data is far from the monthly delivery volume of over 10,000 new car manufacturers. It is expected that the loss amount will be large.

And this loss will continue for a period of time, Zhang Xiang analysis said, "Wei Xiaoli" annual delivery of about 100,000 still can not achieve profitability, and established more than a decade, but also the last two years to start profitability, Lantu car in the last three to five years must still need external blood transfusion, the increase in capital to improve the financial situation of Lantu is positive.

It is worth mentioning that, according to the pre-disclosure announcement, as of June 30 this year, the total assets of Lantu Auto 7.412 billion yuan, the total liabilities have reached 6.529 billion yuan, the asset-liability ratio has reached 88%, and the owner’s equity is only 883 million yuan.

Urgent need for efficient development, Lantu Automotive’s marketization operation intentions are obvious

In many cases, the sluggish sales development of Lantu Automobile will be attributed to the constraints brought by the background of state-owned enterprises, and in this capital increase, we can also clearly feel that Lantu Automobile is undergoing market operation.

According to the pre-disclosure announcement, 89.66% of the shares of Lantu Automobile are held by the joint stock company of the automobile group, and 10.34% of the shares are held by the employee shareholding platform Wuhan Waya Enterprise Management Consulting Partnership (limited partnership). Obviously, Lantu Automobile has a so-called "Equity Incentive Plan", which confirms the information disclosed by its CEO Lu Fang at the beginning.

At the same time, the increase in capital is necessarily to exchange equity for money. Although the indicators such as "total proceeds raised" and "new investors’ proposed corresponding shareholding ratio" are temporarily unknown, the market-oriented operation of introducing external funds and even technology has been vividly reflected. Previously, people familiar with the matter told "Daoge Said Car" that there will definitely be private capital in the financing of Lantu Automobile, and there will also be some ecological partners who will invest in the shares. As long as it is conducive to the development of Lantu, they can not hold shares in the future. Combined, the determination of Lantu Automobile to operate in the market is evident.

And all this may be in order to boost the sales of Lantu Automobile, so as to achieve the goal of "Lantu’s task next year is to make a profit" previously revealed by people familiar with the matter. It is worth mentioning that once Lantu Automobile boosts sales, then Lantu’s future development may produce a series of positive changes. Zhang Xiang analyzed that most of the end point stores of Lantu Automobile are currently funded by themselves, and external investors may be reluctant to cooperate with Lantu, because the reason is that the sales volume is poor and the benefits are poor. So in turn, if the sales growth of Lantu Automobile meets the expectations of investors, will there be more and more "dealers" rushing to cooperate with Lantu Automobile? And the changes after this can be imagined.