In 2019-2021, WM Motor had vehicle sales of 12,799, 21,937 and 44,152 units respectively.

(Image credit: WM Motor)

WM Motor has applied to list in Hong Kong, becoming the latest Chinese electric vehicle (EV) maker after Leapmotor to look to raise capital in the Southeast Asian financial center.

The company's co-sponsors for its Hong Kong initial public offering (IPO) are Haitong International, CMB International and BOC International, according to the prospectus it filed with the Hong Kong Stock Exchange today.

The prospectus focuses on presenting basic facts about WM Motor and has not yet provided information about its expected financing amount or expected timeline for the IPO.

WM Motor launched its first model in September 2018 and has cumulative sales of 83,495 units of all its models as of December 31, 2021.

In 2019-2021, WM Motor's vehicle sales were 12,799, 21,937 and 44,152 units, respectively.

The company currently has one production base in Wenzhou, Zhejiang province and one in Huanggang, Hubei province, with a maximum annual production capacity of 100,000 and 150,000 units, respectively.

The company's revenue were RMB 1.76 billion, RMB 2.67 billion and RMB 4.74 billion in 2019-2021, with growth rates of 51.6 percent and 77.5 percent in 2020 and 2021, respectively, according to the prospectus.

It had gross losses of RMB 1.03 billion, RMB 1.16 billion, and RMB 1.95 billion in 2019-2021, respectively.

As of March 31, 2022, the company had cash and cash equivalents of RMB 3.68 billion, one-tenth of its local peers (NYSE: NIO, HKG: 9866, SGX: Nio), Motors (NYSE: XPEV, HKG: 9868).

"We require significant capital for our operations. Failure to obtain adequate financing on acceptable terms could have a material adverse effect on our business and on our results of operations," the prospectus reads.

However, WM Motor said that its financial resources are sufficient to help the company deal with the uncertainty caused by Covid outbreak.

Production at the company's Huanggang site was suspended from late January to March 2020 and the Wenzhou site from late January to February 2020 as Covid first broke out two years ago, the prospectus said, without disclosing whether those facilities were hit by this latest Covid this year.

WM Motor founder, chairman and CEO Freeman Shen and his wife together own 30.82 percent of the company, with local real estate developer Agile Property holding 6.46 percent and Baidu holding 5.96 percent.

The company currently sells models including the EX5, EX6, W6 and E5, and plans to launch the M7 flagship sedan later this year.

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