GUANGZHOU, China–(BUSINESS WIRE)–$XPEV #EV–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 and fiscal year ended December 31, 2022.
Operational and Financial Highlights for the Three Months Ended December 31, 2022
| 2022Q4 | 2022Q3 | 2022Q2 | 2022Q1 | 2021Q4 | 2021Q3 | |||||||
| Total deliveries | 22,204 | 29,570 | 34,422 | 34,561 | 41,751 | 25,666 |
| Key Financial Results | ||||||||||||||
| (in RMB billions, except for percentage) | ||||||||||||||
|
| For the Three Months Ended | % Changei | ||||||||||||
|
| December 31, | September 30, | December 31, |
| ||||||||||
|
| 2021 |
| 2022 |
| 2022 |
| YoY | QoQ | ||||||
|
|
|
|
|
|
| |||||||||
| Vehicle sales | 8.19 |
| 6.24 |
| 4.66 |
| -43.1 | % | -25.3 | % | ||||
| Vehicle margin | 10.9 | % | 11.6 | % | 5.7 | % | -5.2pts | -5.9pts | ||||||
| Total revenues | 8.56 |
| 6.82 |
| 5.14 |
| -39.9 | % | -24.7 | % | ||||
| Gross profit | 1.02 |
| 0.92 |
| 0.45 |
| -56.5 | % | -51.8 | % | ||||
| Gross margin | 12.0 | % | 13.5 | % | 8.7 | % | -3.3pts | -4.8pts | ||||||
| Net loss | 1.29 |
| 2.38 |
| 2.36 |
| 83.4 | % | -0.6 | % | ||||
| Non-GAAP net loss | 1.20 |
| 2.22 |
| 2.21 |
| 84.6 | % | -0.5 | % | ||||
|
Net loss attributable to | 1.29 |
| 2.38 |
| 2.36 |
| 83.4 | % | -0.6 | % | ||||
|
Non-GAAP net loss | 1.20 |
| 2.22 |
| 2.21 |
| 84.6 | % | -0.5 | % | ||||
|
Comprehensive loss | 1.86 |
| 0.69 |
| 2.68 |
| 44.4 | % | 288.3 | % | ||||
i Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented
Operational and Financial Highlights for the Fiscal Year Ended December 31, 2022
| Key Financial Results | ||||||||
| (in RMB billions, except for percentage) | ||||||||
|
| For the Fiscal Year Ended | % Changei | ||||||
| December 31, | December 31, |
| ||||||
| 2021 |
| 2022 |
| YoY | ||||
| Vehicle sales | 20.04 |
| 24.84 |
| 23.9 | % | ||
| Vehicle margin | 11.5 | % | 9.4 | % | -2.1pts | |||
| Total revenues | 20.99 |
| 26.86 |
| 28.0 | % | ||
| Gross profit | 2.62 |
| 3.09 |
| 17.8 | % | ||
| Gross margin | 12.5 | % | 11.5 | % | -1.0pts | |||
| Net loss | 4.86 |
| 9.14 |
| 87.9 | % | ||
| Non-GAAP net loss | 4.48 |
| 8.43 |
| 88.0 | % | ||
|
Net loss attributable to ordinary | 4.86 |
| 9.14 |
| 87.9 | % | ||
|
Non-GAAP net loss attributable to | 4.48 |
| 8.43 |
| 88.0 | % | ||
|
Comprehensive loss attributable to | 5.78 |
| 5.95 |
| 2.9 | % | ||
i Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented
Management Commentary
We have comprehensively reviewed our strategy and took decisive actions to execute our organisational restructuring and strengthen our capabilities where necessary, said Mr. He Xiaopeng, Chairman and CEO of XPENG. From 2023 to 2027, the industry will move from a phase of rapid EV penetration to an era of accelerated disruption by smart technologies, and we are confident that we will further strengthen our leadership in smart EV technologies.
With the optimization of our product portfolio and the significant improvement of our marketing capabilities, we will resume growth in our sales and market share, said Dr. Hongdi Brian Gu, Honorary Vice Chairman and Co-President of XPENG. In the meantime, we will improve operational efficiency across our business processes and continue to reduce costs.
Recent Developments
Deliveries in January and February 2023
Appointment of President
Ms. Fengying Wang (Ms. Wang) has been appointed as the president of the Company with effect from January 30, 2023. Prior to joining the Company, Ms. Wang served various leadership positions at Great Wall Motor Company Limited (HKEX stock code: 2333 and SSE stock code: 601633) from 1991 to 2022, including but not limited to the Vice Chairman and the General Manager.
Launch of The New P7i Sports Sedan
In March 2023, the Company officially launched and kicked off deliveries of the P7i sports sedan for the Chinese market. The P7i is the new mid-cycle facelift version of the P7, with comprehensive upgrades in driver assistance, intelligent cockpit, performance and charging efficiency.
Unaudited Financial Results for the Three Months Ended December 31, 2022
Total revenues were RMB5.14 billion (US$0.75 billion) for the fourth quarter of 2022, representing a decrease of 39.9% from RMB8.56 billion for the same period of 2021 and a decrease of 24.7% from RMB6.82 billion for the third quarter of 2022.
Revenues from vehicle sales were RMB4.66 billion (US$0.68 billion) for the fourth quarter of 2022, representing a decrease of 43.1% from RMB8.19 billion for the same period of 2021 and a decrease of 25.3% from RMB6.24 billion for the third quarter of 2022. The year-over-year decrease was mainly attributable to lower vehicle deliveries for the G3i and P7, while the quarter-over-quarter decrease was mainly due to lower vehicle deliveries for the P5 and P7 with partial offset by the newly launched G9.
Revenues from services and others were RMB0.48 billion (US$0.07 billion) for the fourth quarter of 2022, representing an increase of 29.9% from RMB0.37 billion for the same period of 2021 and a decrease of 17.7% from RMB0.58 billion for the third quarter of 2022. The year-over-year increase was mainly attributable to more services, parts and accessory sales in line with higher accumulated vehicle sales, while the quarter-over-quarter decrease was mainly due to lower parts and services sales associated with Covid-19 pandemic impact in the fourth quarter of 2022.
Cost of sales was RMB4.70 billion (US$0.68 billion) for the fourth quarter of 2022, representing a decrease of 37.7% from RMB7.53 billion for the same period of 2021 and a decrease of 20.4% from RMB5.90 billion for the third quarter of 2022. The year-over-year and quarter-over-quarter decreases were mainly in line with vehicle deliveries as described above.
Gross margin was 8.7% for the fourth quarter of 2022, compared with 12.0% and 13.5% for the fourth quarter of 2021 and the third quarter of 2022, respectively.
Vehicle margin was 5.7% for the fourth quarter of 2022, compared with 10.9% for the same period of 2021 and 11.6% for the third quarter of 2022. The year-over-year and quarter-over-quarter decreases were explained by increased sales promotions.
Research and development expenses were RMB1.23 billion (US$0.18 billion) for the fourth quarter of 2022, representing a decrease of 15.3% from RMB1.45 billion for the same period of 2021 and a decrease of 17.9% from RMB1.50 billion for the third quarter of 2022. The year-over-year and quarter-over-quarter decreases were mainly in line with timing and progress of new vehicle programs.
Selling, general and administrative expenses were RMB1.76 billion (US$0.25 billion) for the fourth quarter of 2022, representing a decrease of 12.9% from RMB2.02 billion for the same period of 2021 and an increase of 8.0% from RMB1.63 billion for the third quarter of 2022. The year-over-year decrease was mainly due to the decrease of commission to the franchised stores associated with lower vehicle deliveries. The quarter-over-quarter increase was mainly attributable to the higher marketing, promotional and advertising expenses to support vehicle sales.
Loss from operations was RMB2.52 billion (US$0.36 billion) for the fourth quarter of 2022, compared with RMB2.43 billion for the same period of 2021 and RMB2.18 billion for the third quarter of 2022.
Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB2.37 billion (US$0.34 billion) for the fourth quarter of 2022, compared with RMB2.34 billion for the same period of 2021 and RMB2.02 billion for the third quarter of 2022.
Net loss was RMB2.36 billion (US$0.34 billion) for the fourth quarter of 2022, compared with RMB1.29 billion for the same period of 2021 and RMB2.38 billion for the third quarter of 2022.
Non-GAAP net loss, which excludes share-based compensation expenses, was RMB2.21 billion (US$0.32 billion) for the fourth quarter of 2022, compared with RMB1.20 billion for the same period of 2021 and RMB2.22 billion for the third quarter of 2022.
Net loss attributable to ordinary shareholders of XPENG was RMB2.36 billion (US$0.34 billion) for the fourth quarter of 2022, compared with RMB1.29 billion for the same period of 2021 and RMB2.38 billion for the third quarter of 2022.
Non-GAAP net loss attributable to ordinary shareholders of XPENG, which excludes share-based compensation expenses, was RMB2.21 billion (US$0.32 billion) for the fourth quarter of 2022, compared with RMB1.20 billion for the same period of 2021 and RMB2.22 billion for the third quarter of 2022.
Basic and diluted net loss per ADS were both RMB2.74 (US$0.40) for the fourth quarter of 2022, compared with RMB1.51 for the fourth quarter of 2021 and RMB2.77 for the third quarter of 2022.
Non-GAAP basic and diluted net loss per ADS were both RMB2.57 (US$0.37) for the fourth quarter of 2022, compared with RMB1.41 for the fourth quarter of 2021 and RMB2.59 for the third quarter of 2022.
Balance Sheets
As of December 31, 2022, the Company had cash and cash equivalents, restricted cash, short-term investments and time deposits of RMB38.25 billion (US$5.55 billion), compared with RMB43.54 billion as of December 31, 2021 and RMB40.12 billion as of September 30, 2022.
Unaudited Financial Results for the Fiscal Year Ended December 31, 2022
Total revenues were RMB26.86 billion (US$3.89 billion) for the fiscal year of 2022, representing an increase of 28.0% from RMB20.99 billion for the prior year.
Revenues from vehicle sales were RMB24.84 billion (US$3.60 billion) for fiscal year 2022, representing an increase of 23.9% from RMB20.04 billion for the prior year. The increase was mainly attributable to higher vehicle deliveries.
Revenues from services and others were RMB2.02 billion (US$0.29 billion) for fiscal year 2022, representing an increase of 113.0% from RMB0.95 billion for the prior year. The increase was mainly attributable to more services, parts and accessory sales in line with higher accumulated vehicle sales.
Cost of sales was RMB23.77 billion (US$3.45 billion) for fiscal year 2022, representing an increase of 29.4% from RMB18.37 billion for the prior year. The increase was mainly in line with vehicle deliveries as described above.
Gross margin was 11.5% for fiscal year 2022, compared with 12.5% for the prior year.
Vehicle margin was 9.4% for fiscal year 2022, compared with 11.5% for the prior year. The decrease was primarily due to increased sales discount and increases in material cost.
Research and development expenses were RMB5.21 billion (US$0.76 billion) for fiscal year 2022, representing an increase of 26.8% from RMB4.11 billion for the prior year. The increase was primarily due to higher employee compensation as a result of more research and development staff and higher expenses relating to the development of new vehicle models to support future growth.
Selling, general and administrative expenses were RMB6.69 billion (US$0.97 billion) for fiscal year 2022, representing an increase of 26.1% from RMB5.31 billion for the prior year. The increase was mainly due to the expansion of the Companys sales network and associated personnel cost.
Loss from operations was RMB8.71 billion (US$1.26 billion) for fiscal year 2022, compared with RMB6.58 billion for the prior year.
Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB8.00 billion (US$1.16 billion) for fiscal year 2022, compared with RMB6.20 billion for the prior year.
Impact of foreign currency revaluation reflected the following results:
(i) Exchange loss from foreign currency transactions was RMB1.46 billion (US$0.21 billion) for fiscal year of 2022, primarily reflecting the revaluation impact of Renminbi-denominated assets held in U.S. dollar functional currency subsidiaries as a result of Renminbi depreciation against U.S. dollars in 2022.
(ii) Foreign currency translation adjustment was RMB3.19 billion (US$0.46 billion) gain for fiscal year 2022, primarily resulting from the appreciation of U.S. dollar-denominated assets. Such revaluation was included in other comprehensive (loss) income, but not net loss.
Net loss was RMB9.14 billion (US$1.33 billion) for fiscal year 2022, compared with RMB4.86 billion for the prior year.
Non-GAAP net loss, which excludes share-based compensation expenses, was RMB8.43 billion (US$1.22 billion) for fiscal year 2022, compared with RMB4.48 billion for the prior year.
Net loss attributable to ordinary shareholders of XPENG was RMB9.14 billion (US$1.33 billion) for fiscal year 2022, compared with RMB4.86 billion for the prior year.
Non-GAAP net loss attributable to ordinary shareholders of XPENG, which excludes share- based compensation expenses, was RMB8.43 billion (US$1.22 billion) for fiscal year 2022, compared with RMB4.48 billion for the prior year.
Comprehensive loss attributable to ordinary shareholders of XPENG was RMB5.95 billion (US$0.86 billion) for fiscal year 2022, compared with RMB5.78 billion for the prior year.
Basic and diluted net loss per ADS were both RMB10.67 (US$1.55) for fiscal year 2022, compared with RMB5.92 for the prior year.
Non-GAAP basic and diluted net loss per ADS were both RMB9.84 (US$1.43) for fiscal year 2022, compared with RMB5.46 for the prior year.
Business Outlook
For the first quarter of 2023, the Company expects:
The above outlook is based on the current market conditions and reflects the Companys preliminary estimates of market and operating conditions, and customer demand, which are all subject to change.
Conference Call
The Companys management will host an earnings conference call at 8:00 AM U.S. Eastern Time on March 17, 2023 (8:00 PM Beijing/Hong Kong time on March 17, 2023).
For participants who wish to join the call by phone, please access the link provided below to complete the pre-registration process and dial in 5 minutes prior to the scheduled call start time. Upon registration, each participant will receive dial-in details to join the conference call.
| Event Title: | XPeng Inc. Fourth Quarter 2022 Earnings Conference Call | |
| Pre-registration link: |
Additionally, a live and archived webcast of the conference call will be available on the Companys investor relations website at http://ir.xiaopeng.com.
A replay of the conference call will be accessible approximately two hours after the conclusion of the call until March 24, 2023, by dialing the following telephone numbers:
| United States: | +1-855-883-1031 | |
| International: | +61-7-3107-6325 | |
| Hong Kong, China: | 800-930-639 | |
| Mainland China: | 400-120-9216 | |
| Replay Access Code: | 10028722 |
About XPeng Inc.
XPeng Inc. (XPENG) is a leading Chinese Smart EV company that designs, develops, manufactures, and markets smart EVs that appeal to the large and growing base of technology- savvy middle-class consumers. Its mission is to drive Smart EV transformation with technology and data, shaping the mobility experience of the future. In order to optimize its customers mobility experience, XPENG develops in-house its full-stack advanced driver-assistance system technology and in-car intelligent operating system, as well as core vehicle systems including powertrain and the electrical/electronic architecture. XPENG is headquartered in Guangzhou, China, with main offices in Beijing, Shanghai, Silicon Valley, San Diego and Amsterdam. The Companys Smart EVs are mainly manufactured at its plants in Zhaoqing and Guangzhou, Guangdong province. For more information, please visit https://heyXPENG.com.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic loss per weighted average number of ordinary shares and non-GAAP basic loss per ADS, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Companys past performance and future prospects. The Company also believes that the non- GAAP financial measures allow for greater visibility with respect to key metrics used by the Companys management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Companys operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Companys performance.
For more information on the non-GAAP financial measures, please see the table captioned Unaudited Reconciliations of GAAP and non-GAAP Results set forth in this announcement.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.8972 to US$1.00, the exchange rate on December 30, 2022, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.
Contacts
For Investor Enquiries
IR Department XPeng Inc.
E-mail: ir@xiaopeng.com
Jenny Cai
The Piacente Group
Tel: +1-212-481-2050 or +86-10-6508-0677
E-mail: xpeng@tpg-ir.com
For Media Enquiries
PR Department XPeng Inc.
E-mail: pr@xiaopeng.com
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