21st Century Business Herald reporter Du Qiaomei reported in Beijing
After the “founder’s annual salary of 1.2 billion” was on the hot search, on the evening of October 27, it was reported that Weimar announced four salary optimization measures at the recent internal employee communication meeting.
It is said that due to payment collection and financial considerations, since November, the salary payment date of employees has been postponed from the 8th to the 25th; at the same time, executives above the deputy general manager will be paid 50% of the monthly salary, and employees below M4 will be paid 70% of the monthly salary; in addition, , suspend all car purchase subsidies and year-end bonuses, 13 salary, 14 salary.
In response to this, WM Motor said in response to the 21st Century Business Herald reporter that recently, executives have taken the initiative to cut salaries and other measures in order to actively achieve strategic goals such as cost reduction and efficiency improvement, and improvement of profit structure, in order to develop steadily in the cold winter of the industry. , continue to provide users with high-quality services.
However, as a business with a huge initial investment and a long payback period, car manufacturing has to go through a long process of mass production of models – rising sales – prominence of scale effect – positive gross profit margin – positive net profit – return of capital. Even “Weixiaoli”, whose sales volume has risen and gross profit margin has turned positive, has not yet achieved profitability under the continuous R&D investment and market layout.
Especially in 2022, unfavorable factors such as the new crown epidemic, supply chain problems, the cold winter of the capital market, and the global economic downturn will continue to plague the auto industry, and market competition will intensify. The model of relying on “losses” to create sales barriers is no longer competitive. The new energy vehicle industry urgently needs to return to the essence of business, achieve healthy financial indicators and sustainable development.
In fact, as the earliest group of new car-making forces in China, Weimar was once tied with Weilai and Xiaopeng, ranking the first camp of new car-making forces.
“We are very confident to become the world’s first truly profitable new car company for the whole year. We hope to run ahead of Tesla and firmly believe that we can do it.” Shen Hui, founder of WM Motor, pointed out in an interview with the media .
At the same time, with Shen Hui’s pragmatic style and rich background in the automotive industry, when the “Internet car building” was controversial, Weimar successfully obtained Baidu, Tencent, Sequoia, Chengcheng Capital, SIG and other star capital and local government investment.
However, after the IPO in early January 2021, the “Failure” of the Science and Technology Innovation Board, even though the cumulative financing amount has reached 35 billion yuan, the sales gap between Weimar and the top new forces seems to be getting bigger and bigger.
The data shows that in 2019, WM Motor delivered a total of 16,900 new cars, ranking second in the sales volume of new power car companies, second only to Weilai; however, entering 2020, WM Motor’s car sales have gradually been replaced by Xiaopeng, Ideal, Nezha, New car-making forces such as Leapmotor have overtaken them.
In the first half of this year, Weimar delivered a total of 21,700 vehicles, while Xiaopeng, Nezha, Ideal and Weilai delivered 69,000, 63,100, 60,400 and 50,800 vehicles respectively.
Behind the decline in sales is the growing loss of Weimar.
According to the prospectus disclosed by Weimar in June this year, from 2019 to 2021, the total revenue of Weimar Motors was 1.762 billion yuan, 2.671 billion yuan, and 4.773 billion yuan respectively, and the adjusted net profit was -4.04 billion yuan, respectively. -4.225 billion yuan and -5.363 billion yuan, with gross profit margins of -58.3%, -43.5% and -41.1%, respectively.
Today, Weimar, which is hovering in front of the gate of the Hong Kong Stock Exchange, is facing the challenge of cash flow. Whether it can successfully survive the “darkness before dawn” and successfully go public will also be the biggest test for Weimar founder Shen Hui.