Continue the "Great Retreat"! Wang Xing continued to sell his ideals, cashing out more than 500 million yuan! The big reshuffle began

Kanjian Finance

2024-04-08 11:20Published in Shaanxi Finance and Economics Creator

Wang Xing, continue the "Great Retreat".

On April 3, according to the information disclosed by the Hong Kong Stock Exchange, Wang Xing, the founder, director and controlling shareholder of Meituan, once again reduced his holdings of Li Auto shares.

The information shows that from March 26 to March 28, Wang Xing sold 950,000 shares, 1,413,900 shares and 1,798,400 shares of Li Auto for three consecutive days, totaling 4,162,300 shares, and the average price of the reduction was HK$122.16, HK$118.57 and HK$121.91 respectively. The total cash amount exceeded HK$500 million.

After the completion of this reduction, Wang Xing's shareholding ratio decreased from 21.76% to 21.53%.

The response said that Wang Xing's shareholding reduction was his personal behavior, and the number of transactions accounted for a very small proportion of his total shareholdings, and this part of the reduction did not involve Meituan's shareholding.

The implication is that Wang Xing's reduction will not cause a significant change in shareholdings.

In fact, this reduction is not the first time Wang Xing has reduced his holdings in Li Auto.

Since March last year, Wang Xing has begun to reduce his holdings in Li Auto. According to statistics, in March 2023, Wang Xing reduced his holdings of Li Auto nine times in 10 days, with a total cash amount of HK $420 million.

In September 2023, Wang Xing began to intensively reduce his holdings in Li Auto, with a total cash amount of HK $311 million. Regarding Wang Xing's reduction, the official reply of the ideal at that time was the same as this time.

So, what kind of signal does Wang Xing's reduction in his holdings release? Will Wang Xing's reduction have a greater impact on the future development of the ideal?

Kanjian Finance believes that as the competition in the new energy vehicle industry has entered the "white-hot" stage, the knockout competition of new energy vehicle companies has also kicked off. Therefore, when the enterprise enters the mature stage, the cash out of investors is a normal operation.

From the above point of view, we expect that Wang Xing's reduction will not stop in the short term.

Ideal "Mr. Key"

Wang Xing's vision can not be described as "vicious".

As early as 2020, Wang Xing asserted that there will be three new car-making forces left in the end, namely Ideal, Weilai and Xiaopeng.

In the face of Wang Xing's judgment, Shen Hui, the founder of WM Motor, responded quite unconvinced, saying, "I bet with Wang Xing that WM Motor will strive to enter the TOP3 in the delivery ranking of new car-making forces in 2020, and I also hope to be the first place in the new car-making forces in the next few years." ”

As a bet, Shen Hui said, "If I lose, I will give Wang Xing a car, and if I win, I hope Wang Xing can personally deliver me a takeaway, and I will set the location." ”

Wang Xing did not respond to Shen Hui's call.

Until September 2023, after WM Motor officially announced the failure of the third impact listing, Shen Hui posted on Weibo, saying, "I went to Munich on a business trip this week, and then New York." Good things are grinding, wait for the flowers to bloom".

Since then, Shen Hui has not been heard from. WM Motor is also on the verge of collapse.

According to the audit report mentioned in a reorganization case, the total audited book assets of WM Technology Group are 3.988 billion yuan, and the liabilities are as high as 20.367 billion yuan. In other words, WM Motor has fallen into a serious insolvency situation.

At that time, the new car-making forces, including Li Auto, were in the darkest moment, and once faced a broken capital chain.

In August 2019, Li Auto announced the completion of a $530 million Series C financing, led by Wang Xing with a personal investment of $300 million and Li Xiang with a personal investment of $100 million.

In June 2020, Li Auto announced the completion of a $550 million Series D financing, of which $500 million was led by Meituan and $30 million was followed by Li Xiang, with a post-investment valuation of $4.05 billion.

Not only that, in the process of Li Auto's listing on the NASDAQ, Meituan subscribed for $300 million, and Wang Xing subscribed for $30 million. In December 2020, Li Auto issued an additional 47 million ADS, and Wang Xing personally subscribed for 20 million US dollars.

In more than a year, with an investment of more than $1.15 billion, Wang Xing has made a heavy bet on his ideals, which has brought him excess returns. Wang Xing once said, "Those friends who think that Li Xiang's ideal is to operate a 100 billion dollar ideal car, you still underestimate it by an order of magnitude." ”

Judging from the performance of the year, although the ideal decline is more than 20%, the current reduction is still a "difficult and correct" choice.

Knockouts, intensified

All kinds of signs show that the current new energy vehicle market has begun to transition from the blue ocean market to the red ocean market, and the new energy vehicle market has also moved from the stock competition stage to the elimination stage.

After entering the first quarter of 2024, the "reshuffle" pattern of the market has been very obvious.

Xiaomi's entry into the game has stirred up the entire new energy vehicle market, and many new energy vehicle companies have started a new round of price cuts.

Judging from the sales ranking in the first quarter, the ideal of winning by an overwhelming margin last year has also been surpassed by the world.

According to the data, the sales volume of Wenjie in March was 31,700 units, a year-on-year increase of 756.76%, and the sales volume in the first quarter was 85,800 units, a year-on-year increase of 633.33%. The number of deliveries in March was 29,000 units, a year-on-year increase of only 39.20%, and the number of deliveries in the first quarter was 80,400 units, an increase of 52.58%.

In other words, in the current market environment, who will be the ultimate winner is still full of uncertainties.

Recently, after the release of Ideal's first pure electric MPV, Ideal MEGA, the response was mediocre, and the orders did not meet expectations, since the beginning of March, Ideal's share price has fallen by more than 30%.

In the face of the initial failure of Ideal MEGA, on March 21, Li Xiang, the founder of Li Auto, said in a letter to all employees, "We pay too much attention to sales and competition from top to bottom, so that desire surpasses value, and our user value and operational efficiency that we are best at have decreased significantly." The pursuit of desire makes us become the person we hate. ”

Not only that, Li Xiang said that through organizational upgrading, it is necessary to reduce the process that does not create value, reduce the number of meetings, improve the work efficiency of employees, and increase the return of employees.

Kanjian Finance believes that 2024 will be a cruel year for new energy vehicle companies, due to the intensification of competition between car companies, sales volume is still the most important indicator, if sales decline, then the market will only vote with its feet. So, from the above perspective, although Ideal has started to make a profit, it is not completely restless.

Previously, Ideal adjusted its sales target for the whole year of 2024 in communication with investors, from the original 650,000 to 800,000 units, and only 10% of the overall situation in the first quarter, which is not optimistic.

On the whole, this year is a critical year for all new energy vehicle companies, overcapacity is an indisputable fact, as more and more car companies join the price war, the competition in the new energy vehicle industry will become more and more fierce, and the word "elimination" will also become the key word of the industry this year.

Judging from the above market environment, Wang Xing's reduction of holdings released a signal and also illustrated his judgment on the future of the industry. According to the research report released, it has lowered the target price of Li Auto from HK$260 to HK$191.

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