On March 1, the new energy vehicle brand Weilai announced its fourth quarter and full-year results for 2022.。In the fourth quarter of 2022, sales of Weilai cars were 147.59 billion yuan (RMB, the same below), up 60% YoY.2%。Total revenue is 160.63.5 billion yuan, up 62.2%。Gross profit is 6.21.8 billion yuan, down 63.4%。Net loss attributable to Weilai common stockholders was 58.47.1 billion yuan。

For the full year 2022, automotive sales were 455.06.6 billion yuan, up 37.2%。Total revenue was 492.68.6 billion yuan, up 36.3%。Gross profit was 51.44 billion yuan, a decrease of 24.6%。Net loss attributable to Weilai common stockholders was 145.59.4 billion yuan, up 37.7%。

In response, Bank of America Securities issued a research report saying that the decline in Weilai's performance was mainly due to the impact of inventory provisions for existing ES8, ES6 and EC6 models, accelerated depreciation of production facilities and loss of purchase commitments.。Net loss for the period amounted to RMB5.8 billion, higher than the bank's expected net loss of RMB3.1 billion.。As a result, Bank of America cut its sales forecast for this year and next by 12% and 8%, respectively, and lowered its target price from HK $109 to HK $93, believing that its net loss will continue to widen in 2023-24.。

In addition, BOCOM International also released a research report saying that it will cut its 2023 / 24 revenue forecast by 18.4% / 17.7% to reflect more conservative sales forecasts, with sales of 180,000 vehicles expected in 2023。The net loss is also expected to remain high in 2023, dragged down by high operating expenses, with the target price lowered to 83.HK $1。