XPeng Inc. (“XPeng” or the “Company”, NYSE: XPEV and HKEX: 9868), a leading Chinese smart electric vehicle (“Smart EV”) company, today announced its unaudited financial results for the three months ended June 30, 2022.
i Except for vehicle margin and gross margin, where absolute changes instead of percentage are presented
Management Commentary
“Our deliveries sustained robust growth momentum in the second quarter despite unprecedented circumstances brought by the resurgence of COVID-19 in certain areas of China,” said Mr. He Xiaopeng, Chairman and CEO of XPeng. “We are on track for the official launch of our flagship G9 SUV in September 2022. The G9 is expected to become the industry’s new benchmark for comfort, luxury and advanced technologies in the medium- to large-size SUV segment. With the G9, we have taken both electrification and smart technologies to new heights. These new technologies will be integrated into our future models and alongside our extraordinary product design we will set the bar for an unparalleled driving experience.”
“We are accelerating the pace of new product launches to round out our offering with vehicles priced between RMB150,000 to RMB500,000. In 2023, we plan to roll out two new competitive models that will further propel rapid sales volume growth,” Mr. He concluded.
“Our solid financial results for the second quarter of 2022 reflect our ability to meet strong market demand despite supply chain challenges and cost inflation,” said Dr. Hongdi Brian Gu, Honorary Vice Chairman and President of XPeng. “We expect our investments in R&D to bear fruit in the upcoming quarters with the roll-out of multiple new products, which will unleash new growth potential and reinforce our leading position in the smart electric vehicle industry.”
Recent Developments
Deliveries in July 2022
Unaudited Financial Results for the Three Months Ended June 30, 2022
Total revenues were RMB7,436.3 million (US$1,110.2 million) for the second quarter of 2022, representing an increase of 97.7% from RMB3,761.3 million for the same period of 2021 and a decrease of 0.2% from RMB7,454.9 million for the first quarter of 2022.
Revenues from vehicle sales were RMB6,938.5 million (US$1,035.9 million) for the second quarter of 2022, representing an increase of 93.6% from RMB3,584.4 million for the same period of 2021 and a decrease of 0.9% from RMB6,998.8 million for the first quarter of 2022. The year-over-year increase was mainly attributable to higher vehicle deliveries, especially for the P7 and P5. Vehicle sales revenue remained stable compared with the first quarter of 2022.
Revenues from services and others were RMB497.8 million (US$74.3 million) for the second quarter of 2022, representing an increase of 181.4% from RMB176.9 million for the same period of 2021 and an increase of 9.1% from RMB456.1 million for the first quarter of 2022. The year-over-year and the quarter-over-quarter increases were mainly attributable to more service, parts and accessory sales in line with higher accumulated vehicle sales.
Cost of sales was RMB6,627.0 million (US$989.4 million) for the second quarter of 2022, representing an increase of 100.0% from RMB3,312.7 million for the same period of 2021 and an increase of 1.3% from RMB6,544.2 million for the first quarter of 2022. The year-over-year increase was mainly in line with vehicle deliveries as described above, while the quarter-over-quarter change was primarily attributable to the increase in raw material and battery cost.
Gross margin was 10.9% for the second quarter of 2022, compared with 11.9% and 12.2% for the second quarter of 2021 and the first quarter of 2022, respectively.
Vehicle margin was 9.1% for the second quarter of 2022, compared with 11.0% for the same period of 2021 and 10.4% for the first quarter of 2022. The quarter-over-quarter decrease was mainly attributable to battery cost increase, offset partially by revenue increase as a result of selling price adjustment.
Research and development expenses were RMB1,265.0 million (US$188.9 million) for the second quarter of 2022, representing an increase of 46.5% from RMB863.5 million for the same period of 2021 and an increase of 3.6% from RMB1,221.3 million for the first quarter of 2022. The year-over-year and the quarter-over-quarter increases were mainly due to (i) the increase in employee compensation as a result of expanded research and development staff, and (ii) higher expenses relating to the development of new vehicles models to support future growth.
Selling, general and administrative expenses were RMB1,664.5 million (US$248.5 million) for the second quarter of 2022, representing an increase of 61.5% from RMB1,030.8 million for the same period of 2021 and comparable to the level of the first quarter of 2022. The year-over-year increase was mainly due to the expansion of our sales network and associated personnel cost, and commission for franchised store sales.
Loss from operations was RMB2,090.8 million (US$312.1 million) for the second quarter of 2022, compared with RMB1,443.2 million for the same period of 2021 and RMB1,920.5 million for the first quarter of 2022. The higher quarter-over-quarter loss was mainly attributable to lower gross profit and higher operating expenses mentioned above.
Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB1,854.3 million (US$276.8 million) for the second quarter of 2022, compared with RMB1,345.0 million for the same period of 2021 and RMB1,747.9 million for the first quarter of 2022.
Exchange loss from foreign currency transactions was RMB938.3 million (US$140.1 million) for the second quarter of 2022, primarily resulting from the revaluation impact of Renminbi-dominated assets held in U.S. functional currency subsidiaries and depreciation of Renminbi against U.S. dollars in the second quarter of 2022.
Net loss was RMB2,700.9 million (US$403.2 million) for the second quarter of 2022, compared with RMB1,194.6 million for the same period of 2021 and RMB1,700.8 million for the first quarter of 2022.
Non-GAAP net loss, which excludes share-based compensation expenses, was RMB2,464.4 million (US$367.9 million) for the second quarter of 2022, compared with RMB1,096.4 million for the same period of 2021 and RMB1,528.2 million for the first quarter of 2022.
Net loss attributable to ordinary shareholders of XPeng was RMB2,700.9 million (US$403.2 million) for the second quarter of 2022, compared with RMB1,194.6 million for the same period of 2021 and RMB1,700.8 million for the first quarter of 2022.
Non-GAAP net loss attributable to ordinary shareholders of XPeng, which excludes share-based compensation expenses, was RMB2,464.4 million (US$367.9 million) for the second quarter of 2022, compared with RMB1,096.4 million for the same period of 2021 and RMB1,528.2 million for the first quarter of 2022.
Basic and diluted net loss per ADS attributable to ordinary shareholders of XPeng were both RMB3.16 (US$0.47) for the second quarter of 2022, compared with RMB1.50 for the second quarter of 2021 and RMB2.00 for the first quarter of 2022.
Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders of XPeng were both RMB2.88 (US$0.43) for the second quarter of 2022, compared with RMB1.38 for the second quarter of 2021 and RMB1.80 for the first quarter of 2022.
Balance Sheets
As of June 30, 2022, the Company had cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits of RMB41,339.3 million (US$6,171.8 million), compared with RMB43,543.9 million as of December 31, 2021 and RMB41,714.0 million as of March 31, 2022.
Business Outlook
For the third quarter of 2022, the Company expects:
The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, and customer demand, which are all subject to change.
