First-line Yuweilai’s second quarter revenue of 1.5 billion yuan sales warming trend

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[abstract] Weilai’s total income in the second quarter of 2019 was 1.508.6 billion yuan, of which automobile sales amounted to 1.414 billion yuan. A total of 3553 products were delivered in the second quarter, of which 3140 were delivered by ES8 and 413 by ES6.
Tencent News “Front Line” Wang Pan
On September 24, Weilai released its unaudited financial report for the second quarter of the fiscal year up to June 30, 2019.
According to the report, 3553 products were delivered in the second quarter of 2019, of which 3140 were delivered by ES8 and 413 by ES6.
In terms of performance, Weilai’s total revenue in the second quarter of 2019 was 1.508.6 billion yuan, of which automobile sales amounted to 1.414 billion yuan.
After deducting recall costs, Weilai’s gross profit margin on automobile sales in the second quarter of 2019 was negative 4.0% and that in the last quarter was negative 7.2%.
Weilai’s sales cost after deducting recall cost in the second quarter of 2019 was 1,673.7 billion yuan, a 9.6% decrease compared with the previous quarter.
In July, Weilai voluntarily recalled 4,803 ES8 vehicles, which significantly affected the production and delivery of vehicles that month because of priority in meeting the production of recalled batteries. In August, Weilai delivered a total of 1,943 electric vehicles, including 146 ES8 and 1,797 ES6, showing a monthly growth of 132.1%.
On September 5, Weilai signed a subscription agreement for convertible bonds with Tencent and Li Bin. Under the agreement, Weilai will issue and sell convertible bonds with a total principal of US$200 million to investors in the form of private issuance, which is expected to be completed by the end of September.
Weilai expects to deliver 4,200 to 4,400 ES8 and ES6 units in the third quarter of 2019, an increase of 18.2% to 23.8% compared with the second quarter. In the third quarter of 2019, total revenue is estimated to be 1.593 billion yuan to 1.663 billion yuan, an increase of about 56% to 10.3% compared with the second quarter.
“In the second quarter of 2019, the company delivered 3553 ES8 and ES6 vehicles, together with 837 in July and 1943 in August. As of August 31, 2019, the total delivery volume reached 21670 vehicles.” Li Bin, founder, chairman and chief executive of Weilai, said, “Weilai’s five high-performance electric SUV ES6 have been offline since June and will increase production and delivery in the coming months. In the weak macro environment and automobile market conditions, we continue to strive to expand the market. Starting in October, we will start delivering ES6 and ES8 with 84 kWh battery packs, and the vehicle’s overall operating range will be increased to 510 km and 430 km, respectively. We will further enhance the competitiveness of our products through technological progress, so as to continuously improve sales. ”
Li Bin also said: “In response to the overall slowdown in market conditions, we have implemented a comprehensive means of efficiency and cost control within the enterprise to optimize resource input and return. These initiatives will further enhance efficiency and streamline operations in sales service networks and R&D activities. By the end of the third quarter, we aim to reduce the global workforce from 9,900 in January 2019 to about 7,800; by the end of this year, we will further achieve more efficient operations through additional restructuring and breaking up some non-core businesses.