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Li Auto, Nio, Xpeng Jump as EV Firms Reportedly Seek Hong Kong Listing

The trio of Chinese electric vehicle manufacturers are all already publicly listed in the U.S.
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Chinese electric vehicle makers Li Auto Inc.  (LI) - Get Li Auto Inc. Report, Nio Inc.  (NIO) - Get NIO Inc. American depositary shares each representing one Class A Report and XPeng Inc.  (XPEV) - Get n.a. Report all plan on listing in Hong Kong as early as this year, according to a report Tuesday. 

The companies, all of which are already publicly listed in the U.S., aim to sell at least 5% of enlarged share capital on the Hong Kong exchange, sources told Reuters. Proceeds for the listings could reach $5 billion. 

The companies have been working with unnamed advisors on the sales, which could start as early as mid-year, anonymous sources said. The trio has raised nearly $15 billion in U.S. markets since 2018, according to Reuters. 

Meanwhile, the China Passenger Car Association issued some encouraging statistics overnight, saying that EV sales in February rose more than sevenfold year-over-year to 97,000 vehicles. 

Shares of Li Auto jumped 13.3%, while Xpeng and NIO gained 14.2% and 11.9%, respectively, on Tuesday morning. 

On Monday, Xpeng reported a narrower fourth-quarter loss and vehicle deliveries that beat its own expectations. 

The Guangzhou-based electric carmaker, which went public in August, said it lost 787.4 million yuan ($121 million) in the fourth quarter vs. a loss of 997.1 million yuan ($153.3 million) in the same period a year ago. Total revenue jumped almost 350% to 2.85 billion yuan ($438.1 million).

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Last week, Nio reported fourth-quarter losses that were wider-than-expected.

Nio said revenue totaled 6.641 billion renminbi (US$1.018 billion) in the quarter, up 133.2% from last year, but below Visible Alpha’s analyst forecast of 6.7 billion yuan.

Nio posted a net loss of 1.389 billion renminbi (US$212.8 million) in the quarter, shrinking 51.5% from a year ago. The net loss per share registered 1.05 renminbi ($0.16) in the fourth quarter, wider than analysts’ estimate of a 0.70 renminbi loss.

Meanwhile, Li Auto reported a surprise quarterly profit when it released its fourth quarter results in late February. 

The Beijing company reported a fiscal fourth quarter profit of 107.5 million yuan ($16.7 million), or 2 cents per share, versus a loss of 107 million yuan ($16.5 million) in the third quarter. Revenue jumped 65% to 4.15 billion yuan ($640 million).

Analysts were expecting a net loss of 125 million yuan ($19.4 million), or 4 cents per share, on revenue of $565.5 million. 

Shares of U.S. electric vehicle maker Tesla  (TSLA) - Get Tesla Inc. Report also rose in tandem with its Chinese counterparts Tuesday, surging 11.8% at last check.