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.
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
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.
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