• SK +822 3782 6980
  • HK +852 5808 7009

XPeng strategic partnership news
excites Core Asset Wealth team

May 3rd, 2022 Back To News & Insights

Xpeng cooperation agreement

The team at Core Asset Wealth Management are excited to hear that XPeng has signed a strategic cooperation agreement with Agricultural Bank of China, securing RMB7.5 billion credit facilities.

XPeng Inc. (“XPeng” or the “Company”, NYSE: XPEV and HKEX: 9868), a leading Chinese smart electric vehicle company, today announced that it has signed a strategic cooperation agreement with the Agricultural Bank of China (“ABC”) Guangdong Branch, pursuant to which the Company will secure a comprehensive credit line of up to RMB7.5 billion for its subsidiaries and affiliates in China (the “Agreement”).

Under the terms of the Agreement, the ABC Guangdong Branch will provide an extensive range of credit facilities to support the Company’s business operations and expansion in China.

“We are very pleased with the Agreement, with terms demonstrating the financial institution’s strong trust in our solid business fundamentals and growth prospects. As we pursue rapid technology and product iterations, we will continue to strengthen our product competitiveness and bring compelling EV experience to our consumers,” said Mr. He Xiaopeng, Chairman and CEO of XPeng.

This credit line, featuring the largest credit limit granted to an emerging Chinese automaker by the ABC, is a strong testament to XPeng’s leadership position in the Smart EV sector as XPeng is committed to the strategy of in-house full-stack R&D development. These credit facilities under the Agreement will further diversify the Company’s funding channels and help optimize the efficiencies in cash management, cost control and more corporate initiatives.

In 2021, XPeng delivered 98,155 smart EVs, a 263% increase compared with 2020, making it the top-ranked emerging Chinese EV maker of the year. The Company’s total revenue exceeded RMB20 billion in 2021, a 259% increase compared with 2020. Despite the challenging market conditions, 34,561 smart EVs were delivered in Q1 2022, a 159% increase year-over-year.

XPeng Major holders

Insiders own 6.83% of the company shares, while shares held by institutions stand at 35.88% with a share float percentage of 38.51%.

Investors are also buoyed by the number of investors in a company, with XPeng Inc. having a total of 532 institutions that hold shares in the company.

The top two institutional holders are

  • FMR, LLC with over 20.53 million shares worth more than $1.03 billion.
  • Blackrock Inc., with over 19.6 million shares worth more than $986.26 million.

XPeng History

XPeng was co-founded in 2014 by Henry Xia and He Tao. Initial backers including The founder of UCWeb, Former Alibaba executives, Current Chairman of XPeng, Lei Jun and also The founder of Xiaomi.

XPeng started production of its first model, the XPeng G3 SUV, in November 2018. It launched the G3 in December 2018 at the 2018 Consumer Electronics Show in Las Vegas. Its second model, the P7, a four-door electric sedan, premiered in April 2019 at the 2019 Auto Shanghai show and started deliveries to customers in June 2020.In May 2019, XPeng launched a vehicle for hire company with its own vehicles to serve Guangzhou.

Previous Fundraising Rounds

  • November 2019, raised USD$400 million in a third fundraising round, which saw Xiaomi join as a strategic investor of XPeng.
  • July 2020 saw another $500 million raised from a group of investors including Aspex, Coatue, Hillhouse Capital and Sequoia Capital China.
  • August 2020, XPeng raised an additional $400 million from a group of investors including Alibaba, Qatar Investment Authority and Abu Dhabi's sovereign wealth fund Mubadala.
  • 27 August 2020, XPeng raised $1.5 billion with an IPO on the New York Stock Exchange, where its shares climbed more than 40% on the first day of trading.
  • March 2021, the company received a $76.9 million funding from Guangdong Yuecai Investment Holdings Co.
Back To News & Insights