XPeng Inks Strategic Cooperation Agreement with Banks for RMB12.8 Billion Credit Facilities

Rhea-AI Summary

XPeng Inc. (NYSE: XPEV) has signed a strategic cooperation agreement with domestic banks, securing a credit line of RMB12.8 billion. The agreement, which involves five major banks, will enhance XPeng's business operations, manufacturing, and sales capabilities by optimizing cash management and cost control. This partnership underscores the company's robust growth potential, following a successful $900 million pre-IPO and $1.7 billion IPO in 2020. The company has also expanded its sales and service network significantly, with plans to launch a new Smart EV sedan in 2021, showcasing its commitment to technological advancement.

Positive

• Secured RMB12.8 billion credit line from five major banks, enhancing financial flexibility.
• Strategic cooperation with leading banks diversifies funding channels, indicating strong business fundamentals.
• Expanded sales and service network to 58 cities with significant charging infrastructure, supporting customer acquisition.
• Plans to launch a new Smart EV sedan with advanced lidar technology in 2021, enhancing product lineup.

Negative

• None.

XPeng Inc. (“XPeng” or the “Company”, NYSE: XPEV), a leading Chinese smart electric vehicle (“Smart EV”) company, announced it signed a strategic cooperation agreement with leading domestic banks at a signing ceremony held today in Guangzhou, China, pursuant to which it will secure a credit line of RMB12.8 billion with an extensive range of credit facilities (the “Agreement”).

Under the terms of the Agreement, five domestic commercial banks including the Agricultural Bank of China, the Bank of China, China Construction Bank, China CITIC Bank and Guangzhou Rural Commercial Bank, will provide credit facilities to support the Company’s business operations and expansion of its manufacturing, sales and service capabilities. These facilities will help the Company optimize the efficiency of its cash management, cost control and other corporate functions.

The strategic cooperation with leading banks further diversifies The Company’s funding channels, underscoring its solid business fundamentals and growth prospects.

The Company is developing rapidly following its successful $900 million pre-IPO fundraising and $1.7 billion IPO in August 2020.

• In December 2020, the Company completed its first public follow-on offering, raising approximately $2.5 billion.
• In November 2020, the Company’s second manufacturing base broke ground in Guangzhou, making it the first Chinese start-up EV maker with two self-owned factories.
• XPeng’s physical sales & service network has expanded into 58 cities with 116 retail sales stores and 50 service centers, as of September 30, 2020.
• The number of XPeng-branded supercharging stations has expanded to 135, covering 50 cities, as of September 30, 2020.
• Free supercharging services are provided to XPeng customers at 670 supercharging stations across 100 Chinese cities, since the free-to-use supercharging program was launched in September 2020.
• The Company delivered a total of 27,041 vehicles in 2020 with a fast-growing customer base that has reached over 40,000.
• The Company’s third production model – a new Smart EV sedan slated for official launch and customer delivery in 2021 – will be equipped with lidar technology, representing a major breakthrough in the mass production deployment of the cutting-edge autonomous driving technology.
• In December 2020, the Company delivered the first batch of 100 G3 smart SUVs to customers in Norway, representing a milestone for its international business.

“Looking ahead, 2021 presents us with exciting opportunities. We believe the strategic collaboration with these leading financial institutions will enable us to further accelerate growth by building upon our core strengths. With our unwavering commitment to technology innovation and customer services, we look forward to bringing compelling EV experience tailored to our consumers,” said He Xiaopeng, Chairman and CEO of the Company.

About XPeng

XPeng Inc. is a leading Chinese smart electric vehicle company that designs, develops, manufactures, and markets Smart EVs that appeal to the large and growing base of technology-savvy middle-class consumers in China. Its mission is to drive Smart EV transformation with technology and data, shaping the mobility experience of the future. In order to optimize its customers’ mobility experience, XPeng develops in-house its full-stack autonomous driving technology and in-car intelligent operating system, as well as core vehicle systems including powertrain and the electrification/electronic architecture. XPeng is headquartered in Guangzhou, China, with offices in Beijing, Shanghai, Silicon Valley, and San Diego. The Company’s Smart EVs are manufactured at plants in Zhaoqing and Zhengzhou, located in Guangdong and Henan provinces, respectively. For more information, please visit https://en.xiaopeng.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210111006115/en/

FAQ

What recent financial agreement did XPeng Inc. secure?

XPeng Inc. secured a credit line of RMB12.8 billion through a strategic cooperation agreement with five domestic banks.

How will the credit facilities impact XPeng's business operations?

The credit facilities will support XPeng's business operations and help optimize cash management and cost control.

What are XPeng's plans for 2021 regarding new vehicle launches?

XPeng plans to launch a new Smart EV sedan equipped with lidar technology in 2021.

What is XPeng's current expansion status in terms of sales and service?

XPeng has expanded its sales and service network to 58 cities, with 116 retail stores and 50 service centers.