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 third quarter of 2022.
Operational and Financial Highlights for the Three Months Ended September 30, 2022
| 2022Q3 | 2022Q2 | 2022Q1 | 2021Q4 | 2021Q3 | 2021Q2 | ||||||
Total deliveries | 29,570 | 34,422 | 34,561 | 41,751 | 25,666 | 17,398 | ||||||
P7 deliveries | 16,776 | 15,983 | 19,427 | 21,342 | 19,731 | 11,522 | ||||||
P5 deliveries | 8,703 | 12,848 | 10,486 | 7,621 | 244 | |
Key Financial Results
(in RMB billions, except for percentage)
| For the Three Months Ended | % Changei | ||||||||||||
| September 30, | June 30, | September 30, |
| ||||||||||
2021 | 2022 | 2022 | YoY | QoQ | ||||||||||
Vehicle sales | 5.46 | 6.94 | 6.24 | 14.3 | % | -10.1 | % | |||||||
Vehicle margin | 13.6% | 9.1% | 11.6% | -2.0pts | 2.5pts | |||||||||
Total revenues | 5.72 | 7.44 | 6.82 | 19.3 | % | -8.2 | % | |||||||
Gross profit | 0.82 | 0.81 | 0.92 | 12.5 | % | 14.1 | % | |||||||
Gross margin | 14.4% | 10.9% | 13.5% | -0.9pts | 2.6pts | |||||||||
Net Loss | 1.59 | 2.70 | 2.38 | 49.0 | % | -12.0 | % | |||||||
Non-GAAP net loss | 1.49 | 2.46 | 2.22 | 49.0 | % | -9.8 | % | |||||||
Net loss attributable to | 1.59 | 2.70 | 2.38 | 49.0 | % | -12.0 | % | |||||||
Non-GAAP net loss | 1.49 | 2.46 | 2.22 | 49.0 | % | -9.8 | % | |||||||
Comprehensive loss | 1.62 | 0.78 | 0.69 | -57.4 | % | -11.3 | % |
i Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented
Management Commentary
Our management team has recently conducted an in-depth review of our growth strategy, products and operation. We have already carried out organization restructuring and changed some of our strategies. I am confident that our industry-leading smart and electrification technologies will allow us to build competitive products appealing to a broad customer base, said Mr. He Xiaopeng, Chairman and CEO of XPENG. I also would like to thank our shareholders for their valuable suggestions to us.
We will implement prudent cost control initiatives and improve operational efficiency, said Dr. Hongdi Brian Gu, Honorary Vice Chairman and President of XPENG. As we plan a number of upcoming product and technology rollouts, we are confident that we can achieve significant improvement in both sales volumes and average selling price.
Recent Developments
Deliveries in October 2022
XPENG 2022 TECH DAY
ESG Performance
Unaudited Financial Results for the Three Months Ended September 30, 2022
Total revenues were RMB6.82 billion (US$0.96 billion) for the third quarter of 2022, representing an increase of 19.3% from RMB5.72 billion for the same period of 2021 and a decrease of 8.2% from RMB7.44 billion for the second quarter of 2022.
Revenues from vehicle sales were RMB6.24 billion (US$0.88 billion) for the third quarter of 2022, representing an increase of 14.3% from RMB5.46 billion for the same period of 2021 and a decrease of 10.1% from RMB6.94 billion for the second quarter of 2022. The year-over-year increase was mainly attributable to higher vehicle deliveries, while the quarter-over-quarter decrease was mainly due to lower vehicle deliveries for the P5 and G3i.
Revenues from services and others were RMB0.58 billion (US$0.08 billion) for the third quarter of 2022, representing an increase of 124.1% from RMB0.26 billion for the same period of 2021 and an increase of 17.0% from RMB0.50 billion for the second quarter of 2022. The year-over-year and the quarter-over-quarter increases were mainly attributable to more services, parts and accessory sales in line with higher accumulated vehicle sales.
Cost of sales was RMB5.90 billion (US$0.83 billion) for the third quarter of 2022, representing an increase of 20.4% from RMB4.90 billion for the same period of 2021 and a decrease of 11.0% from RMB6.63 billion for the second quarter of 2022. The year-over-year increase was explained by higher vehicle sales and higher material cost, and the quarter-over-quarter decrease was mainly in line with vehicle deliveries as described above.
Gross margin was 13.5% for the third quarter of 2022, compared with 14.4% and 10.9% for the third quarter of 2021 and the second quarter of 2022, respectively.
Vehicle margin was 11.6% for the third quarter of 2022, compared with 13.6% for the same period of 2021 and 9.1% for the second quarter of 2022. The quarter-over-quarter increase was primarily attributable to the product mix changes.
Research and development expenses were RMB1.50 billion (US$0.21 billion) for the third quarter of 2022, representing an increase of 18.5% from RMB1.26 billion for the same period of 2021 and an increase of 18.5% from RMB1.26 billion for the second quarter of 2022. The year-over-year increase was mainly due to the increase in employee compensation as a result of expanded research and development staff, and the quarter-over-quarter increase was primarily associated with higher new vehicle development to support future growth.
Selling, general and administrative expenses were RMB1.63 billion (US$0.23 billion) for the third quarter of 2022, representing an increase of 5.7% from RMB1.54 billion for the same period of 2021 and a decrease of 2.3% from RMB1.66 billion for the second quarter of 2022. The year-over-year increase was mainly due to expansion of our sales network and associated personnel cost. The quarter-over-quarter decrease was mainly attributable to lower operating expenses.
Loss from operations was RMB2.18 billion (US$0.31 billion) for the third quarter of 2022, compared with RMB1.80 billion for the same period of 2021 and RMB2.09 billion for the second quarter of 2022. The higher quarter-over-quarter loss was mainly attributable to higher operating expenses mentioned above.
Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB2.02 billion (US$0.28 billion) for the third quarter of 2022, compared with RMB1.70 billion for the same period of 2021 and RMB1.85 billion for the second quarter of 2022.
Impact of foreign currency revaluation reflected the following results:
Net loss was RMB2.38 billion (US$0.33 billion) for the third quarter of 2022, compared with RMB1.59 billion for the same period of 2021 and RMB2.70 billion for the second quarter of 2022.
Non-GAAP net loss, which excludes share-based compensation expenses, was RMB2.22 billion (US$0.31 billion) for the third quarter of 2022, compared with RMB1.49 billion for the same period of 2021 and RMB2.46 billion for the second quarter of 2022.
Net loss attributable to ordinary shareholders of XPENG was RMB2.38 billion (US$0.33 billion) for the third quarter of 2022, compared with RMB1.59 billion for the same period of 2021 and RMB2.70 billion for the second quarter of 2022.
Non-GAAP net loss attributable to ordinary shareholders of XPENG, which excludes share-based compensation expenses, was RMB2.22 billion (US$0.31 billion) for the third quarter of 2022, compared with RMB1.49 billion for the same period of 2021 and RMB2.46 billion for the second quarter of 2022.
Comprehensive loss attributable to ordinary shareholders of XPENG was RMB0.69 billion (US$0.10 billion) for the third quarter of 2022, compared with RMB1.62 billion for the same period of 2021 and RMB0.78 billion for the second quarter of 2022. The difference between comprehensive loss and net loss reflected primarily the revaluation impact of U.S. dollar-denominated assets mentioned above.
Basic and diluted net loss per ADS attributable to ordinary shareholders of XPENG were both RMB2.77 (US$0.39) for the third quarter of 2022, compared with RMB1.89 for the third quarter of 2021 and RMB3.16 for the second quarter of 2022.
Non-GAAP basic and diluted net loss per ADS were both RMB2.59 (US$0.36) for the third quarter of 2022, compared with RMB1.77 for the third quarter of 2021 and RMB2.88 for the second quarter of 2022.
Balance Sheets
As of September 30, 2022, the Company had cash and cash equivalents, restricted cash, short-term investments and time deposits of RMB40.12 billion (US$5.64 billion), compared with RMB43.54 billion as of December 31, 2021 and RMB41.34 billion as of June 30, 2022.
Business Outlook
For the fourth quarter of 2022, 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 November 30, 2022 (9:00 PM Beijing/Hong Kong time on November 30, 2022.)
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. Third 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 December 7, 2022, 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: | 10026490 |
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 plant in Zhaoqing, 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 RMB7.1135 to US$1.00, the exchange rate on September 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.S. dollars or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates and similar statements. Statements that are not historical facts, including statements about XPENGs beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: XPENGs goal and strategies; XPENGs expansion plans; XPENGs future business development, financial condition and results of operations; the trends in, and size of, Chinas EV market; XPENGs expectations regarding demand for, and market acceptance of, its products and services; XPENGs expectations regarding its relationships with customers, contract manufacturer, suppliers, third-party service providers, strategic partners and other stakeholders; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in XPENGs filings with the United States Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and XPENG does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
XPENG INC. | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) | |||||
| December 31, |
| September 30, |
| September 30, |
2021 |
|
2022 |
|
2022 | |
ASSETS |
|
|
|
|
|
Current assets | |||||
Cash and cash equivalents | 11,024,906 |
| 11,370,371 |
| 1,598,421 |
Restricted cash | 609,975 |
| 173,449 |
| 24,383 |
Short-term deposits | 25,858,007 |
| 18,173,191 |
| 2,554,747 |
Short-term investments | 2,833,763 |
| 2,018,920 |
| 283,815 |
Long-term deposits, current portion | |
| 423,887 |
| 59,589 |
Derivative assets, current portion | |
| 1,676 |
| 236 |
Accounts and notes receivable, net | 2,673,494 |
| 3,704,270 |
| 520,738 |
Installment payment receivables, net, |
887,202 |
|
1,216,645 |
|
171,033 |
Inventory | 2,661,921 |
| 4,378,007 |
| 615,450 |
Amounts due from related parties | 32,785 |
| 57,669 |
| 8,107 |
Prepayments and other current assets | 2,248,683 |
| 2,421,807 |
| 340,451 |
Total current assets |
48,830,736 |
|
43,939,892 |
|
6,176,970 |
Non-current assets |
|
|
|
|
|
Long-term deposits | 3,217,266 |
| 7,962,455 |
| 1,119,344 |
Property, plant and equipment, net | 5,424,776 |
| 9,367,276 |
| 1,316,831 |
Right-of-use assets, net | 1,561,175 |
| 2,067,712 |
| 290,674 |
Intangible assets, net | 878,724 |
| 892,545 |
| 125,472 |
Land use rights, net | 595,471 |
| 2,731,503 |
| 383,989 |
Installment payment receivables, net | 1,863,492 |
| 2,213,706 |
| 311,198 |
Long-term investments | 1,549,176 |
| 2,391,170 |
| 336,145 |
Other non-current assets | 1,730,486 |
| 223,883 |
| 31,473 |
Total non-current assets |
16,820,566 |
|
27,850,250 |
|
3,915,126 |
Total assets |
65,651,302 |
|
71,790,142 |
|
10,092,096 |
XPENG INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) | ||||||||
| December 31, |
| September 30, |
| September 30, | |||
2021 |
|
2022 |
|
2022 | ||||
LIABILITIES |
|
|
|
|
| |||
Current liabilities | ||||||||
Short-term borrowings | |
| 1,600,000 |
| 224,924 | |||
Accounts and notes payable | 12,362,186 |
| 14,999,534 |
| 2,108,601 | |||
Amounts due to related parties | 24,919 |
| 28,593 |
| 4,020 | |||
Operating lease liabilities, current portion | 373,488 |
| 515,139 |
| 72,417 | |||
Finance lease liabilities, current portion | |
| 164,726 |
| 23,157 | |||
Deferred revenue, current portion | 418,227 |
| 316,403 |
| 44,479 | |||
Long-term borrowings, current portion | |
| 328,325 |
| 46,155 | |||
Accruals and other liabilities | 4,811,107 |
| 5,268,607 |
| 740,649 | |||
Income taxes payable | 22,737 |
| 60,434 |
| 8,496 | |||
Total current liabilities |
18,012,664 |
|
23,281,761 |
|
3,272,898 | |||
Non-current liabilities |
|
|
|
|
| |||
Long-term borrowings | 1,675,106 |
| 3,190,643 |
| 448,533 | |||
Operating lease liabilities | 1,189,754 |
| 1,960,669 |
| 275,626 | |||
Finance lease liabilities | |
| 788,050 |
| 110,782 | |||
Deferred revenue | 479,061 |
| 664,727 |
| 93,446 | |||
Other non-current liabilities | 2,148,139 |
| 2,463,163 |
| 346,266 | |||
Total non-current liabilities |
5,492,060 |
|
9,067,252 |
|
1,274,653 | |||
Total liabilities |
23,504,724 |
|
32,349,013 |
|
4,547,551 | |||
SHAREHOLDERS EQUITY |
|
|
|
|
| |||
Class A Ordinary shares | 87 |
| 88 |
| 12 | |||
Class B Ordinary shares | 25 |
| 25 |
| 4 | |||
Additional paid-in capital | 59,980,534 |
| 60,542,236 |
| 8,510,893 | |||
Statutory reserves | 6,047 |
| 6,047 |
| 850 | |||
Accumulated deficit | (16,191,566) |
| (22,969,363) |
| (3,228,983) | |||
Accumulated other comprehensive |
(1,648,549) |
|
1,862,096 |
|
261,769 | |||
Total shareholders equity |
42,146,578 |
|
39,441,129 |
|
5,544,545 | |||
Total liabilities and shareholders equity |
65,651,302 |
|
71,790,142 |
|
10,092,096 |
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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