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

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