XYL (Shanghai Xinyi Automobile Technology Co., Ltd.) issued an announcement on the evening of April 22 that the company’s controlling shareholder, Xinpeng Group, plans to reduce its holdings of no more than 9% of the company’s total shares within 24 months. This means that Xinpeng Group may reduce its holdings by up to 301.96 million shares. Calculated based on the closing price of 87.15 yuan per share on April 22, the maximum reduction in holdings will reach 26.285 billion yuan. At the same time, Xinpeng Group stated that this reduction plan will not lead to XYL’s actual controller changing. According to the data, Xinpeng Group currently holds 3,355.173 million shares of XYL, accounting for 36.23% of the company’s total share capital. If Xinpeng Group reduces its holdings by 9%, it will still hold 2,991.217 million shares of XYL, accounting for 32.33% of the company’s total share capital. Zhitong Finance APP learned that this is not the first time that Xinpeng Group has reduced its holdings of XYL. In January this year, Xinpeng Group reduced its holdings of XYL by 100 million shares, reducing its shareholding ratio from 36.77% to 36.23%. At that time, Xinpeng Group stated that the purpose of reducing its holdings was to meet the capital needs of its own business development. At present, XYL’s share price is still relatively low. As of the close on April 22, XYL’s share price was 87.15 yuan per share, which was only 48.6% of the issue price of 179.28 yuan per share when it went public in July last year. The continued decline in stock prices has also led to a decline in XYL’s latest market value. As of the close on April 22, XYL’s latest total market value was 72.622 billion yuan, a decrease of 53.8% from the highest point of 156.365 billion yuan in November last year. In the past year, XYL’s cumulative decline has reached 50.73%. Affected by the sharp drop in stock prices, XYL’s controlling shareholder Xinpeng Group suffered heavy losses. According to data from the 2021 annual report, Xinpeng Group held 3,326.064 million shares of XYL as of the end of last year, accounting for 36.63% of the company’s total share capital. According to the market value of XYL on April 22, the market value of Xinpeng Group’s shares in XYL has evaporated by more than 36 billion yuan in the past year. In fact, since the listing of XYL last year, Xinpeng Group has been reducing its holdings. Since the listing of XYL on July 13, 2021, Xinpeng Group has reduced its holdings of XYL by a total of 441.968 million shares, reducing its shareholding ratio from 41.55% to 36.23% of the company’s total share capital. The reduction in holdings has also aroused market speculation about Xinpeng Group’s intentions. Some analysts believe that Xinpeng Group’s continuous reduction of its holdings in XYL may be due to its lack of confidence in the future development of XYL. It is worth noting that XYL has not yet fully demonstrated its ability to make profits. In 2021, XYL achieved an operating income of 3,420.8 billion yuan, a year-on-year increase of 357.54%, and a net loss of 5.765 billion yuan after deducting non-net profit, widening the loss by 210.09% year-on-year. In the first half of this year, due to the impact of the epidemic, the production and sales of XYL were affected. In the first half of the year, XYL sold 115,171 vehicles, a year-on-year increase of only 6.1%, and its operating income was 22.695 billion yuan, a year-on-year increase of 14.78%. However, due to the sharp increase in costs, XYL’s net loss after deducting non-net profit in the first half of the year expanded by 203.73% year-on-year to 4.869 billion yuan. In addition, affected by the sharp increase in upstream raw material prices, XYL’s gross profit margin in the first half of the year continued to decline. In the first half of the year, XYL’s gross profit margin was 17.7%, a significant decrease of 3.1 percentage points compared with 20.8% in the first half of last year. In the face of huge losses, some XYL car owners chose to protect their rights with the help of the Internet. In August last year, some XYL car owners broke the news on the Internet that they had encountered various problems in their cars, such as abnormal noise, uncontrolled acceleration, and power loss. On February 18 this year, some car owners also reported that they had lost control of their XYL car while driving, and almost caused a safety accident. The car owners all said that after they contacted XYL’s after-sales service, the problem of their car has not been resolved. In addition to quality problems, XYL is also facing controversy over false propaganda. On January 29 this year, the State Administration for Market Regulation issued a fine of 100,000 yuan to XYL due to false publicity such as exaggerated propaganda of .
XYL Does Not Appear To Have Extreme Self-Destructive Tendencies
