On the evening of August 13th, Xiaopeng Motors announced that the company had started production of the MONA vehicle for sale and delivery to ordinary customers on July 30th. Starting from August 1st, the first batch of exhibition cars of Xiaopeng MONA M03 have arrived at Xiaopeng Motors showrooms across the country. Correspondingly, the SOP (mass production) delivery occurred on August 13th.
According to the share purchase agreement, Xiaopeng Motors has issued 4.64 million Class A ordinary shares to Didi as SOP consideration shares, accounting for approximately 0.24% of the company's issued and outstanding share capital after the expansion of the SOP consideration shares issued and issued.
The relevant person in charge of Xiaopeng Motors told a reporter from Huaxia Times: "Completing the SOP delivery is equivalent to completing Xiaopeng Motors' acquisition of Didi's intelligent car business assets in August 2023." Next, Xiaopeng Motors' cooperation with Didi will enter the "bet" realization stage.
The asset acquisition has been completed, and the revenue related to Didi's intelligent car business has been incorporated into Xiaopeng's performance
At the end of August last year, Xiaopeng Motors and Didi jointly announced that they would reach a strategic cooperation, using their respective advantageous resources to jointly promote the application and popularization of intelligent electric vehicles and related technologies worldwide. At that time, both parties stated that in order to promote the establishment of a long-term win-win strategic partnership, Xiaopeng Motors would acquire assets and research and development capabilities related to Didi's intelligent electric vehicle project.
The strategic cooperation between Xiaopeng Motors and Didi has been divided into four delivery stages, namely the first delivery, SOP delivery, first stage performance target delivery, and second stage performance target delivery.
Among them, the first delivery of Xiaopeng Motors' acquisition of Didi's intelligent car development business assets occurred on November 13, 2023. Xiaopeng Motors has issued 58.16 million shares of Class A common stock as initial consideration shares to Didi, accounting for approximately 3.25% of the company's issued and outstanding share capital after the expansion of the initial consideration shares issued and issued.
At the time of the initial delivery, it was clearly stated that according to the terms and conditions of the share purchase agreement issued by Xiaopeng Motors, "the target holding company agrees, and the seller agrees to cause the target holding company to sell the target shares representing 100% of the issued share capital of the target company to the company. After the initial delivery, each member company of the target group will become a wholly-owned subsidiary of the company, and the financial performance of the target group will be included in the financial statements of the group
When reviewing the first quarter 2024 financial report released by Xiaopeng Motors, Huaxia Times found that it explicitly mentioned the revenue from Didi's business: "The fair value gain of derivative liabilities related to contingent consideration in the first quarter was 180 million yuan, compared to 30 million yuan in the fourth quarter of 2023. This non cash revenue came from changes in fair value of contingent consideration related to the acquisition of Didi's intelligent car business
Now, with the start of mass production of Xiaopeng MONA M03 on July 30th, the milestone conditions for SOP delivery have been met, which means that the production of intelligent electric vehicles will begin and be sold to ordinary customers.
The reporter from Huaxia Times noticed that Xiaopeng MONA M03 has started pre ordering on August 8th and offered a limited time benefit of 90 yuan of intention deposit deducted from 3000 yuan of car purchase fee. At the same time, Xiaopeng Motors also announced a commitment: the starting price of MONA M03 will not exceed 135900 yuan.
So, SOP delivery occurred, and Xiaopeng Motors issued 4.64 million shares of Class A common stock to Didi as SOP consideration shares, accounting for approximately 0.24% of the company's expanded share capital.
Thus, Xiaopeng Motors has officially completed the acquisition of assets related to Didi's intelligent electric vehicle project. Next, the cooperation between Xiaopeng Motors and Didi will officially enter the third and fourth delivery stages based on MONA sales volume.
MONA M03 will be launched on the 27th of this month and will enter the "betting" redemption stage
On the same day as the official announcement of SOP delivery, He Xiaopeng, Chairman of Xiaopeng Motors, announced in a live broadcast that Xiaopeng MONA M03 will be officially listed on August 27th.
Listing means that delivery is not far away. Delivery means that the "bet" between Xiaopeng Motors and Didi will officially enter the "redemption" stage.
According to the share purchase agreement, if the milestone of the first performance target period is reached, Xiaopeng Motors must issue a maximum of 14.05 million shares at the issue price to the seller or the seller's designated person on the applicable date of the first stage performance target delivery; If the milestone of the second performance target period is reached, a maximum of 14.28 million shares must be issued to the seller or the seller's designated person at the issue price on the applicable date of the second stage performance target delivery.
The performance target here, also known as the "betting agreement": after the MONA product is launched, its sales in the Didi Chuxing system will reach 100000 vehicles, and Didi will receive additional consideration equity, with a maximum total consideration incentive equity of 5%.
According to the share purchase agreement, the target period and milestone for the first phase of performance is to deliver a cumulative total of 100000 new vehicles within the 13 month period following the first qualified new vehicle delivery to customers. The second stage performance target period and milestones refer to the cumulative delivery of 100000 eligible new vehicles within the 12-month period following the expiration of the first performance target period.
He Xiaopeng is full of confidence in the prospects of cooperation and has publicly stated that he holds a "conservative expectation" of 100000 units for the annual sales of MONA series new cars. In addition, Xiaopeng Motors also revealed that if the sales of its cooperative models meet expectations, it will implement further equity incentive plans to motivate the team to continue driving business growth and innovation.
It can be said that the arrival of MONA will bring new growth possibilities for Xiaopeng Motors, whose monthly sales continue to hover around 10000 units. Official data shows that in July, Xiaopeng Motors delivered 11145 vehicles, a year-on-year increase of 1% and a month on month increase of 4%.
However, there are still many uncertain factors whether MONA M03 can truly shoulder the banner of sales.
According to data from the China Association of Automobile Manufacturers, the passenger car market priced between 100000 and 150000 yuan is the most competitive segment, with sales in the first seven months of this year accounting for 33.1% of the entire automotive market, the highest proportion among all price ranges. This also means that MONA M03 will be surrounded by more competitors.
Cui Dongshu, Secretary General of the National Passenger Car Market Information Joint Committee, stated that traditional fuel vehicles are priced at 100000 yuan
The performance of 150000 yuan is relatively strong, forming a characteristic of differentiated distribution. The proportion of electric vehicles priced between 100000 and 150000 yuan has decreased, with some electric vehicles being the main force of rental ride hailing services. In the past two years, the market trend for A-class electric vehicles has not been strong.