ZEEKR is listed, why are employees wailing?

Talk V

2024-05-13 18:43Published in Jiangxi

ZEEKR was listed on the New York Stock Exchange two days ago, and it is a popular thing for everyone to cut the old and beautiful leeks. Unexpectedly, due to the serious shrinkage of the valuation, the gap with the previous psychological expectations of the employees with allotment was too large, causing a wail.

On social media, ZEEKR employees complained endlessly. Some employees said that the internal has been completely blown up, and years of hard work have only been exchanged for a few thousand yuan in equity value.

What's more, they called ZEEKR a "liar", accusing the company of fooling people at a price of 100 yuan per share, when the actual market price is only one-tenth.

The offering price is $21, and according to the prospectus, each ADS corresponds to 10 shares of common stock on the NYSE.

Based on the exchange rate of USD/RMB, 1 US dollar is worth 7.2249 yuan. 1 ADS is equal to 10 ordinary shares, which translates to 2.1 US dollars or 15.17 yuan.

According to the feedback of ZEEKR employees, when talking about salary1 ordinary shares are valued at 100 yuan (before tax). In the past two or three years, 100 has become 15 yuan, and it has been directly discounted by 1.5%.

Good guy, I didn't break the bones so hard! In the capital bureau of ZEEKR, the executives seem to be the biggest winners.

According to the prospectus, the exercise price of equity awards for some executives is as low as $0.0002 per share, which is in stark contrast to the equity incentive plan for ordinary employees.

This huge gap in interests has undoubtedly exacerbated the dissatisfaction and disappointment of employees. Some employees questioned: Could it be that ZEEKR's "bleeding listing" is all the blood of employees?

But then again, this is so good that it has been listed, think about Weimar and Gaohe, not to mention the stock price, even lose their jobs.

The timely listing of ZEEKR marks that it has become the fourth Chinese new car-making company to land on the U.S. stock market after Weilai, Xpeng and Ideal, and it is also the fastest IPO of a new energy vehicle company in history.

Zeekr's IPO was undoubtedly a success, with the offering price priced at $21 per ADS and the opening price set at $26, 23.8% higher than the offering price.

On the first day of trading, the stock price rose 34.57% to close at $28.26 per share, with a total market capitalization of $6.997 billion. The results look good, but the valuation is close to halved compared to the A round of financing.

At the end of last year, due to weak market sentiment, ZEEKR temporarily shelved its US listing plan. Now that the IPO is restarted, it has to face the reality that the amount of funds raised has been cut in half.

The ZEEKR brand was established in 2021, and the first model, ZEEKR 001, was officially released in April 2021, and it has only been 37 months.

After only three years of establishment, it was successfully listed in the United States, and behind ZEEKR becoming the "fastest IPO car-making new force" is the financial anxiety that is difficult to dissolve.

According to the prospectus, from 2021 to 2023, the net loss of ZEEKR will be 4.514 billion yuan, 7.655 billion yuan, and 8.264 billion yuan respectively, with a cumulative loss of more than 20 billion yuan in three years.

At the end of 2023, the amount of cash and cash equivalents totaled 3.26 billion yuan. With such a cash flow, it is difficult for ZEEKR to survive for half a year.

As for when to make a profit, ZEEKR CEO An Conghui said last year that in 2024, ZEEKR will complete the goal of annual sales of 230,000 vehicles and achieve profitability that year.

From January to April 2024, ZEEKR delivered a total of 49,148 vehicles, a year-on-year increase of more than 110%. The annual target achievement rate was only 21.3%. It is not easy to achieve the annual sales target with such results.

A few more words

The fact that the IPO valuation is halved compared to the valuation of the previous round of financing is like a label, hinting at the ill-fated future of ZEEKR.

The capital market's enthusiasm for new energy vehicle companies has gradually cooled. In the current atmosphere of market sentiment, it is not easy to tell the story of "the fastest IPO of new forces".

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