Shanghai (ZXZC)- All 47 shareholders of Guangzhou Chengxing Zhidong Automobile Technology Co., Ltd, also known as XPENG Motors, have made the equity stakes they hold in the Guangzhou-based EV startup pledged on December 10, according to China’s National Enterprise Credit Information Public System.

Among the 47 pledgors, there are He Xiaopeng (founder and chairman of XPENG Motors), Henry Xia (XPENG's co-founder), Alibaba (China) Network Technology Co., Ltd, Hangzhou Alibaba Venture Capital Management Co., Ltd and Matrix Partners China. The pledgee is Guangzhou Xiaopeng Motors Technology Co.,Ltd.

（Photo source: XPENG Motors)

Pledging of shares is one of options that the promoters of a company use to secure loans to meet working capital requirement, personal needs, and fund other ventures or acquisitions. The startup recent deed arouse a conjecture saying that XPENG Motors did this to form its VIE (variable interest entities) structure under which it would go public on overseas capital markets..

As part of the XPENG's reorganization, the collective share pledge is a normal deed to the company's development and equity structure improvement, the startup claimed on December 15 via its social media platform in response to external speculations.

It is undeniable that car-building is an extremely cash-burning cause. Hitherto, XPENG Motors has raised tens of billions of yuan from eight rounds of financing, while it is still saddled with intense capital pressure. The startup added that it would continue to optimize its ownership structure for the sake of the entire corporation.