On September 19, Weilai announced that it intends to issue convertible senior bonds (2029 bonds) with a total principal amount of $500 million maturing in 2029 and convertible senior bonds (2030 bonds) with a total principal amount of $500 million maturing in 2030.。

The announcement states that the 2029 Bonds will mature on October 15, 2029 and the 2030 Bonds will mature on October 15, 2030, except for repurchases, redemptions or conversions under their terms before the relevant date.。The $1 billion convertible bond is priced at: 2029 bonds at an annual interest rate of 3.875%; 2030 bonds with an annual interest rate of 4.625%。

The release of $1 billion in convertible bonds is already NIO's second funding move in three months。In mid-July this year, Weilai also announced that it had completed the 7.$38.5 billion strategic equity investment。As a result, Weilai raised a total of 17 in two financings..$38.5 billion。

Weilai has been actively raising funds frequently in the short term, and the market has questioned whether its liquidity is in trouble.。According to Weilai's second-quarter results, the company had a net loss of 60% during the reporting period..5.6 billion yuan, up 119.6%, an increase of 27.8%; 1H20 net loss 109.2.6 billion yuan, an increase of 139.07%。According to professional estimates, in the first half of 2023, Weilai delivered a total of 5.460,000 new cars, which means that Weilai loses an average of $200,000 on selling a car.。

The loss of net profit is closely related to the decline in gross margin of car companies.。In the second quarter of 2023, Weilai's overall gross margin was approximately 1.0%, compared with 13 in the second quarter of last year..0%, 1 in the first quarter of this year.5% decrease。Among them, the gross margin of the automotive business is about 6..2%, compared to about 16 in the second quarter of last year..7%, about 5 in the first quarter of this year.1%。

In addition, in the second quarter, Weilai's research and development expenses and sales, general and administrative expenses were 33.$4.5 billion and 28.5.7 billion yuan, up 55% year-on-year.6% and 25.2%。The skyrocketing R & D costs have put pressure on Weilai, which has become the brand with the highest R & D investment in "Weilai."。

In terms of liquidity, as of June 30, 2023, Weilai cash and cash equivalents were 137.2.3 billion, compared to 198 at December 30, 2022.8.7 billion yuan decreased by 61.6.4 billion yuan。However, NIO's significant cash requirements due within one year are 197.08 million yuan。This suggests that even if NIO replenishes some of its liquidity, it will not be able to fully cover its short-term liquidity needs without using its accumulated cash reserves.。

Affected by the news, on September 19, Weilai U.S. stocks plunged more than 17%, closing at 8.$55 per share, a nearly three-month low, and the company's total market capitalization shrank to $15.2 billion.。

U.S. stocks plunge 32 since August.After 9%, September has so far accumulated a decline of 14.8%。So far this year, the stock has fallen 10.2%, while the S & P 500 is up 15.8%。