2003: Starting with Foreign Trade

Chapter 1025 The Goal? Ten Thousand More Than Teslas!

P.S.: It's almost the end of the month, does everyone have any monthly passes?
On the evening of January 7, the last working day of the first week of 2022, Weilai officially released the group's total sales for 2021.

The sales report that has garnered significant attention from both the automotive and capital markets has finally arrived.

"They've finally arrived. I thought something unexpected had happened."

Analysts from various investment institutions and ordinary investors finally breathed a sigh of relief upon seeing the official report. According to Wei Lai's usual style, this report should have been released on January 5th. This time it was two days late, and Wei Lai did not explain why.

"The performance of the main brand of Weilai is amazing, it's incredible."

Although Weilai internally attaches great importance to Exeed, investors are more concerned about the sales volume of Weilai's main brand. With all models priced between 20 and 50 yuan, Weilai's main brand is Weilai Auto's largest source of revenue and also the biggest contributor to gross profit margin.

The group comprises four automotive subsidiaries: Weilai, Yuechi, Zhidou, and Huanghai, and seven sub-brands: Weilai, Yuechi, Exeed, Tank, Zhidou, Yangzi, and Huanghai. Its products cover both passenger and commercial vehicles, ranging from gasoline-powered to electric vehicles.

"It's been less than 15 years, and Weilai has already developed so comprehensively. It's truly astonishing."

With a range of models covering both passenger and commercial vehicles and a comprehensive range of prices, Weilai has become a force to be reckoned with. Based on this sales report and the first three quarters of 2021, the capital market has high expectations for Weilai's revenue in 2021.

In terms of the main brand, Weilai performed the best. The main model, ES6, delivered a total of 4.48 units throughout the year, while the most expensive ES8 sold 1.68 units. The other two models, ET5 and ES3, also sold 4.05 and 4.12 units respectively.

The only range-extended electric vehicle, and a hot model in 2021, the Weilai L1, despite its high level of controversy, frequently trended on social media, resulting in sales of 90,500 units throughout the year. It is the single model under the entire Weilai brand that is closest to annual sales of 100,000 units.

"Although the ET5 and ES3 don't perform very well in the domestic market, these two models are doing quite well in overseas markets."

Weilai's overseas sales are listed separately, so the sales figures mentioned above do not include Weilai's overseas sales. In terms of exports, although Weilai's ranking in 2021 was not high, its quality was the highest among all domestic car companies.

As models priced between 20 and 30 yuan, the ET5 and ES3 may seem to have insignificant sales in China, but as the main models for the European market, they are comparable to Tesla's Model 3 and Model Y.

Throughout the year, the Weilai brand exported 78,000 vehicles to Europe, with the ET5 and ES3 models accounting for 80% of the sales.
"7.8 vehicles represent BMW's total sales in Europe this year. This export performance is truly impressive. There's a reason why Mr. Tan dares to compete with Tesla. The main brand truly has no weak cars. It's amazing."

According to statistics from the General Administration of Customs, automobile exports surged to 201.5 million units in 2021, a year-on-year increase of 101.1%, with exports to Europe reaching 48.98 units, a surge of 184.7%.

Transforming from a manufacturing powerhouse to a global brand exporter, the country's exports have jumped to eighth place globally, with new energy vehicles accounting for over 15% of exports. Of the 7.8 vehicles exported, all were new energy models, representing 25.16% of China's new energy vehicle export market share.

These two new energy vehicle companies, Tesla and Weilai, together contribute 77.74% of the market share for new energy vehicle exports. In terms of export volume alone, it is very worthwhile for Shanghai to introduce Tesla.

"Including exports, the main brand of Weilai sold 31.18 vehicles in a year. With increased sales, it was still able to maintain profits, which should greatly alleviate Weilai's cash flow problems."

The Exeed series sold 12.37 vehicles, the Aion series sold 12.4 vehicles, and the Zhidou series, which started export business in the fourth quarter, sold 5.63 vehicles for the whole year.

Including the Galaxy P1 which began delivery in September, Weilai's sales of new energy vehicles this year reached 66.43 units, ranking second in the world.

"It's a pity that Weilai doesn't have a complete vehicle business in North America, otherwise he would still be number one in the world, and the market share would probably be even higher."

"I just don't know if these sales figures will be enough to stop the decline in Weilai's stock price or even allow it to continue rising?"

"It's probably difficult for the stock price to continue rising, right? After all, both Wei Lai and Ju Liang have publicly stated that the new energy industry is currently in a bubble. It would be good enough if they could stabilize the stock price."

Tesla has also released its global sales figures. Of the 93.62 vehicles sold globally, 31.34 were sold in North America. If North America is excluded, Tesla's sales of 62.28 vehicles would indeed be lower than those sold in the US.

However, only ordinary investors would do this kind of calculation; the market doesn't buy it. Tesla still undeniably became the world's number one new energy vehicle company in 2021, and its soaring stock price is certainly due to this title.

Tesla's stock price continued to break records in 2021, but as Tesla's largest battery supplier and the most powerful competitor in the world, WIL also performed well in 2021.

Fund portfolio adjustments, subsidy reductions, market factors, and other factors led to a relatively sharp adjustment for Weilai at the end of last year, with its market value even hovering around 3000 billion yuan at the lowest point at the beginning of the year.

However, the company's performance throughout the year surprised the market. Weilai Group experienced an explosive growth year. In December, when it was embroiled in a dispute with Tesla, Weilai's stock price hit an all-time high of 692 yuan, and its market value exceeded 1.6 trillion yuan.

With a market capitalization of 1.6 trillion yuan, it not only broke the record for the highest market capitalization on the ChiNext board, but also briefly surpassed ICBC to become the second largest A-share company after Kweichow Moutai. Compared with BYD, another domestic new energy vehicle giant that has performed well this year, the stock performance of Weilai Shares is simply too good.

It barely declined throughout the year, only experiencing a series of adjustments in the latter half of December. As of the closing on January 7, Weilai's market value reached 1.3 trillion yuan, still making it the number one car company in China.

BYD's stock performance was not so good. In the second quarter, BYD's stock price even plummeted by more than 47%. Although it started to rebound in the second half of the year, the 47.25% increase for the whole year is considered a classic in the investment industry. However, in the context of the automotive industry in 2021 and BYD's own operating performance, it can only be said to be barely passing.

看看今年国内几家新能源车企的股价表现就知道了，尉来全年上涨350%，而闻界与小朋的市值截止2021年12月31日，也分别达到了3200亿以及2700亿。

Even Seres, whose annual passenger car sales were only 8000 units, saw its stock price rise by 100% and its market value exceed 800 billion yuan due to its cooperation with Chrysanthemum and its transformation into a new energy vehicle company.

BYD's stock performance is hard to match its annual sales of 59.38 vehicles and its status as the world's third-largest new energy vehicle company. Moreover, in 2021, BYD was one of the few automakers that was not affected by the chip supply disruption.

To some extent, the market capitalization of companies like Tesla and other emerging players is clearly inflated at present, while BYD's market capitalization is relatively undervalued. However, this is also related to the impression that BYD has left on the capital market over the long term.

Weilai and Tesla are the two car companies with the most outstanding performance in terms of sales, revenue and stock price this year. However, Weilai, which is listed on the A-share market, is far behind Tesla in valuation. Both have a market value of trillions, but one is measured in RMB and the other in USD.

Some investors even believe that listing on the A-share market was a mistake. In addition, with the stock price remaining high, there are growing calls for listing on the Hong Kong stock market and for high stock dividends.

Tan Jincheng also addressed these three points during the shareholders' conference call.

"Since its listing, excluding dividends and additional share issuance, the stock price of Weilai has increased by more than 22 times. If calculated based on the issue price, users who won the lottery for new shares at that time would have earned more than 20 yuan per share by now."

"In terms of return on investment alone, it is even higher than that of real estate over the past ten years. This is a fair deal for institutional investors and ordinary investors. This is why I urged investors to hold the shares for the long term when the company went public."

For a long time, Weilai's market value has remained in a relatively stable range. The stock price fluctuations started a few months before the ChiNext board adjusted the growth rate from 10% to 20%, which was the early stage of the new energy vehicle industry boom. This shows that the market is still very sensitive.

Often, sales figures and even financial reports are not trustworthy, but whether it's US stocks or A-shares, the funds in the secondary market do not lie.

"A market capitalization of one trillion yuan is a reward for Wei Lai's hard work over the years, and also an encouragement. Regarding the stock price bubble that investors are concerned about, it should be noted that the investment boom in the new energy industry will definitely pass, but in the long run, new energy is a very good investment industry and is worth holding for the long term."

"To be honest, I don't know how Weilai's stock price will perform in the future. What we need to do is continue to run the company well, provide consumers with better products and services, and leave the rest to the market."

With a market capitalization of 1.3 trillion yuan, Weilai is certainly not the end. In the long run, Tan Jincheng is even optimistic that Weilai's market capitalization will reach more than 2 trillion yuan, making it the first listed company in China with a market capitalization of more than 2 trillion yuan.

It's not impossible for it to surpass Moutai and become the number one stock in the A-share market. We can't let the top spot in the A-share market always be dominated by liquor companies.

WJ Battery is now essentially a combination and streamlined version of CATL, BYD, and emerging electric vehicle companies. In the power battery market, as the installed capacity of Fudi Battery, CATL, and a number of second-tier battery brands increases, WJ Battery's market share will definitely be gradually eroded.

This involves more than just leading battery technology; it also involves marketing. Component companies also need marketing, and Weilai and Jinshidai have been working hard to create an image of high-end power batteries.

By supplying batteries to two major global new energy vehicle companies, Wynn and Tesla, Jinshidai's batteries have also greatly enhanced its brand power, and more and more companies are realizing this.

This year, Boatman has been actively marketing his Fudi batteries on multiple occasions, as have companies like CATL and Guoxuan High-Tech. This has increased their battery installation rates to some extent and squeezed out Jinxin Technology's market share.

However, regardless of the circumstances, Jinshidai's market position will not be shaken. Aside from BYD, the use of Jinshidai's power batteries in high-end models is now almost universally accepted by consumers. Its position in the power battery market is unshakeable. In the automotive sector, the Exeed S01 has expanded Weilai Auto's market share in the mass market, and the newly launched hybrid model, the Galaxy P1, is also performing well in the market.

Although the brand image of Yuechi, a national brand, has boosted its reputation, the introduction of DHT technology has made the market realize that Weilai is making great efforts to make up for its shortcomings. When range extenders are no longer popular, Weilai Auto is still a company that walks on two legs.

Pure electric and hybrid power – this is the future trend of new energy vehicles.

Compared to BYD, among its two main competitors, Tesla only offers pure electric models, and its performance in the mass market below 30 yuan has not been proven. BYD, on the other hand, lacks a range-extended electric vehicle and is not even in the same league as BYD in terms of high-end positioning.

Another point that cannot be ignored is that new energy vehicles have entered the competition of intelligent vehicles since 2021. Starting from the debates between Tan Jincheng and Yu Dazui in the middle of the year, the concept of intelligent vehicles has been hyped up.

The competition in the new energy vehicle market has undoubtedly shifted from battery range to intelligent technology. In the future, the competition will not only focus on hardware configurations but also on software capabilities, and in this aspect, BYD is not as good as Weilai.

In addition, in the traditional gasoline vehicle sector, WILAY still holds a significant market share this year. Excluding the Galaxy P1, WILAY's three major gasoline vehicle series still achieved sales of up to 77 units, demonstrating WILAY's strength in the traditional gasoline vehicle market.

Although the sales of the Yuechi series are declining year by year and its market share in the family car market is shrinking, the Yangzi series pickup trucks have been able to contribute stable sales every year. The popularity of the rugged off-road Tank 300 has led to a surge in orders, with annual sales reaching 8.5 units, becoming a new growth point for Yuechi's fuel vehicles.

One thing that must be acknowledged is that no matter how popular new energy vehicles are, in some regions and scenarios, electric vehicles cannot replace gasoline vehicles. Tesla and BYD's full electrification, while enabling more concentrated resources, is also more dangerous.

It is well known in the industry that electric vehicles, which are touted as environmentally friendly, are actually quite controversial in terms of environmental protection. Whether it is the production, use, battery recycling, or life cycle aspects, there are many controversies.

With the current environmental protection craze, Europeans also want to get a piece of the pie in electric vehicles. However, when they realize that the environmental protection concept is no longer viable, and European automakers' transition to electric vehicles is not ideal, then gasoline-powered cars will be brought up again.

By retaining its own gasoline-powered vehicle business, unlike BYD's aggressive approach, Weilai can easily return to gasoline-powered vehicles should the market environment change in the future, while BYD and Tesla will face unprecedented difficulties.

Domestic traditional companies like Great Wall and Geely have not performed as well in the field of new energy vehicles. Whether from a long-term or short-term perspective, Weilai is one of the safest car companies.

The strategic approach of being able to advance or retreat as needed, the continuous improvement of technological shortcomings, and the sustained increase in sales are the foundation supporting Weilai's market value of 1.3 trillion.

Including both gasoline-powered vehicles and new energy vehicles, Weilai's total sales reached 143.43 million units. Including Huanghai series commercial vehicles, Weilai's total sales for the year were 146.93 million units.

"Weilai Group may be good at marketing, but they're still honest. They're only a few tens of thousands of vehicles short of 150 million, and they don't even bother to make a move at the end of the year. They're really bizarre."

The revised sales forecast for Weilai in 2021 was 150 million vehicles. By the end of the year, the company had achieved nearly 98% of its target, marking the first time since its inception that Weilai had failed to meet its annual sales forecast.

"Yes, you can add a little bit anywhere. For example, with the Weilai L1, adding a little bit to bring the total to 10 vehicles would look great."

Weilai adopts a comprehensive strategy of high-quality products, with an average number of models. Not many of its individual models have annual sales exceeding 100,000 units. In the past, apart from the Yuechi A1, Weilai did not have any high-volume models. This is also related to Weilai's high-end brand strategy at the time.

The high-end market is relatively niche, and for a large automaker, volume is essential. While it's possible to achieve high volume with just one model or brand, it's not quite there yet.

Today, Exeed S01 and Aion series have become the high-volume brands of Weilai, which can be regarded as a further step in Weilai's comprehensive premiumization strategy. Tan Jincheng himself is not so concerned about whether the annual sales target of 150 million vehicles can be achieved.

Once data fraud is committed, it will be repeated countless times. Tan Jincheng does not want Wei to do this unless absolutely necessary.

Sales of 146.93 million vehicles are quite impressive for a company that has been established for 14 years. Looking at the five companies ahead of Weilai, apart from Changan and GAC, their sales have declined to varying degrees this year, and Geely's performance behind them is also not as expected.

Internally, they did consider boosting sales of the Weilai L1 to break 100,000 units and attract more attention. The sales problem of less than 10% is easy to solve, but Tan Jincheng rejected them all.

L1s are readily available, so there's absolutely no need for them.

This was especially evident at the meeting on the 5th. Considering the popularity of L1 and range-extended electric vehicles, there will definitely be new range-extended electric vehicle models launched in 2022. Li Xiang also wants to set the sales target for the range-extended electric vehicle series at 20 units.

However, Tan Jincheng believes that 15 units is enough, and it may not even be possible to sell 15 units. Range-extended vehicles are meant to make money. For a model priced at over 30 yuan, what more do you need if you can sell over 10 units a year?
Moreover, Tan Jincheng knew that although the first two models that Chrysanthemum and Seres collaborated on were not valued by the market, Seres, which followed the range-extended electric vehicle route, sold very well after Yu Dazui took over.

With Chrysanthemum fully endorsing it, its brand appeal is unmatched by Seres.

Regarding sales expectations for 2021, there are also obvious internal disagreements. Within Weilai, which has essentially formed a multi-brand strategy, there is a very optimistic outlook for sales in 2022.

Tesla's global sales of 93.6 vehicles have snatched the top spot in the new energy vehicle market, much to the dissatisfaction of the company's internal staff, given Tesla's recently announced sales forecast of 140 million vehicles for the entire year of 2022.

按照过往以及2021年度的数据，燃油车市场进一步下滑，内部对于2022年度的燃油车销量预期是62万辆至70万辆之间，也就是2021年度销量的80%至90%。

This is consistent with reality, but there is considerable controversy regarding the sales figures for new energy vehicles.

According to data from the China Association of Automobile Manufacturers (CAAM) and its own internal data, the domestic auto market sales in 2022 will remain around 2600 million vehicles, while the sales of new energy vehicles will continue to grow rapidly, with final sales potentially exceeding 650 million vehicles.

按照今年尉来在新能源汽车市场22.78%的市场份额计算，尉来在2022年度的预期应该是在148.07万辆左右，因此尉来内部想把新能源汽车的2022年销量预期定在150万辆。

"When BYD announced its sales target of 120 million vehicles for 2022, Tesla's 140 million vehicles, and Welai New Energy Vehicles' 150 million vehicles, it really didn't seem like much."

Among the leading brands, even SAIC has announced a goal of selling 100 million new energy vehicles annually. Other brands such as Geely, Great Wall, Wenjie, and Xiaopeng are all aiming to double their sales.

Take Geely as an example. Their sales of new energy vehicles this year barely exceeded 10, and their penetration rate of 7.5% is even lower than that of companies like Great Wall Motors, which do not pay much attention to new energy. Geely is the worst performing of all domestic brands. Among all car companies, Geely's transformation is as slow as that of joint venture brands.

There are reasons why Geely's stock price fell by 20% throughout the year. Even so, Geely has announced a goal of increasing the penetration rate of new energy vehicles by 10 percentage points this year.

"Regarding hybrid vehicles, we sold 13.9 units in 2021, but the Galaxy P1 was only sold for one quarter, so this figure is not enough to support our claim."

"With the expectation of 15 range-extended electric vehicles, coupled with the growing popularity of hybrid vehicles, we can be a little more optimistic about hybrid vehicles. Setting a target of 40 vehicles is not too much."

As for pure electric vehicles, the goal of doubling annual sales compared to this year is definitely set, which is 105 million units. With hybrid vehicles included, the expected annual sales of 145 million units is not significantly different from 150 million units.

Including its gasoline-powered vehicle lineup, Weilai's overall sales target for 2022 is between 207 million and 220 million vehicles.

However, Wei Lai's approach to making public announcements was also quite cunning.

After Tesla announced its full-year sales forecast of 140 million vehicles, Weilai followed suit and announced its full-year sales forecast for 2022, with a total sales volume of 200 million vehicles, of which 141 million are expected to be new energy vehicles.

"If we're talking about cunning, you're the one. This number of 141 million vehicles has put you on the trending topics again."

As the year draws to a close, the Luzhou government organized a New Year's gathering for the automotive industry. Tan Jincheng, Boatman Brother, Yu Dazui, Li Bing, and the CEO of Nezha all attended, making it a star-studded event.

At the meeting, Tan Jincheng also ran into Zhang Yong, whom he hadn't seen in a long time. Although Zhang Yong wasn't from Anhui Province, he had come with Lao Fang, who represented Nezha.

Upon meeting, the radiant Old Wang warmly embraced Tan Jincheng and whispered that 2021 was a significant year for both BYD and Boatman Brother. After 2021, BYD would no longer need to worry about "going bankrupt".

The weight that had been pressing on Lao Wang's heart for so long was finally lifted.

(End of this chapter)