On Wednesday, Haima Automobile said via an investor interaction platform that the company’s partnership with XPeng ended on December 31, 2021, adding that it has always been open and active in external cooperation.
Founded in 1988, Haima’s main business is automobile manufacturing and services. In 2017, XPeng entered a partnership with Haima when it didn’t yet have car manufacturing qualifications, with the latter producing its first car, the XPeng G3.
At present, XPeng has three models on sale: the G3, P7 and P5. The company has also officially announced the G9 SUV at the Guangzhou Auto Show. It has now qualified to produce cars and has a factory in Zhaoqing, Guangdong Province, and is building new plants in Guangzhou and Wuhan.
In August last year, the second phase of the Zhaoqing site started construction – the site’s annual output capacity will ultimately reach 20,000 units. On July 31, 2021, XPeng officially started the Wuhan plant project with a planned capacity of 100,000 units, which is expected to start production in 2023.
Due to a sharp decline of sales volume in 2017, Haima began to lose money and faced the risk of being delisted in 2019. In order to get rid of the delisting dilemma, Haima turned losses into profits in 2019 through a series of adjustments such as disposing of idle assets to supplement the company’s capital. However, such measures cannot solve fundamental problems with its development so simply.
According to performance data released by Haima, in 2020, the company lost more than 1.3 billion yuan ($204 million). Losing the OEM order from XPeng will further aggravate its losses.
At present, Haima Automobile has four models on sale, namely a plug-in hybrid model Haima 6P, fuel models 7X and 8S, and a pure electric model Aishang EV. Haima sold a cumulative 16,500 vehicles in the first half of 2021, 11,200 of which were XPeng G3 SUVs, accounting for 67.95% of the total.
In addition, Haima said on July 21 that its partner FAW would transfer its stake to Hainan Development Holdings without compensation, meaning the end of Haima’s 23-year partnership with FAW.