小鹏汽车2023年Q3业绩公告.pdf

XPENG Reports Third Quarter 2023 Unaudited Financial ResultsNovember 15,2023Cash and cash equivalents,restricted cash,short-term investments and time deposits were RMB36.48 billion(US$5.00billion)as of September 30,2023Quarterly total revenues were RMB8.53 billion,a 68.5%increase quarter-over-quarterQuarterly gross margin was negative 2.7%,an increase of 1.2 percentage points quarter-over-quarterGUANGZHOU,China,Nov.15,2023(GLOBE NEWSWIRE)-XPeng Inc.(“XPENG”or the“Company,”NYSE:XPEV and HKEX:9868),a leadingChinese smart electric vehicle(“Smart EV”)company,today announced its unaudited financial results for the three months ended September 30,2023.Operational and Financial Highlights for the Three Months Ended September 30,2023 2023Q32023Q22023Q12022Q42022Q32022Q2Total deliveries40,00823,20518,23022,20429,57034,422 Total deliveries of vehicles were 40,008 for the third quarter of 2023,representing an increase of 72.4%from 23,205 forthe second quarter of 2023.XPENGs physical sales network had a total of 395 stores as of September 30,2023.XPENG self-operated charging station network reached 1,057 stations,including 854 XPENG self-operatedsupercharging stations and 203 destination charging stations as of September 30,2023.Total revenues were RMB8.53 billion(US$1.17 billion)for the third quarter of 2023,representing an increase of 25.0%from the same period of 2022,and an increase of 68.5%from the second quarter of 2023.Revenues from vehicle sales were RMB7.84 billion(US$1.08 billion)for the third quarter of 2023,representing anincrease of 25.7%from the same period of 2022,and an increase of 77.3%from the second quarter of 2023.Gross margin was negative 2.7%for the third quarter of 2023,compared with 13.5%for the same period of 2022 andnegative 3.9%for the second quarter of 2023.Vehicle margin,which is gross profit or loss of vehicle sales as a percentage of vehicle sales revenue,was negative 6.1%for the third quarter of 2023,compared with 11.6%for the same period of 2022 and negative 8.6%for the second quarterof 2023.Fair value loss on derivative liability was RMB0.97 billion(US$0.13 billion)for the third quarter of 2023.This non-cashloss resulted from the fluctuation in the fair value of the forward share purchase agreement,measured through profit orloss,related to the issuance of shares by the Company for strategic minority investment by the Volkswagen Group(“Volkswagen”).Net loss was RMB3.89 billion(US$0.53 billion)for the third quarter of 2023,compared with RMB2.38 billion for the sameperiod of 2022 and RMB2.80 billion for the second quarter of 2023.Excluding share-based compensation expenses andfair value loss on derivative liability,non-GAAP net loss was RMB2.79 billion(US$0.38 billion)for the third quarter of2023,compared with RMB2.22 billion for the same period of 2022 and RMB2.67 billion for the second quarter of 2023.Net loss attributable to ordinary shareholders of XPENG was RMB3.89 billion(US$0.53 billion)for the third quarter of2023,compared with RMB2.38 billion for the same period of 2022 and RMB2.80 billion for the second quarter of 2023.Excluding share-based compensation expenses and fair value loss on derivative liability,non-GAAP net loss attributable to ordinary shareholders of XPENG was RMB2.79 billion(US$0.38 billion)for the thirdquarter of 2023,compared with RMB2.22 billion for the same period of 2022 and RMB2.67 billion for the second quarter of2023.Basic and diluted net loss per American depositary share (ADS)were both RMB4.49 (US$0.62)andbasic and diluted net loss per ordinary share were both RMB2.25(US$0.31)for the third quarter of 2023.Each ADSrepresents two Class A ordinary shares.Non-GAAP basic and diluted net loss per ADS were both RMB3.23(US$0.44)and non-GAAP basic and diluted netloss per ordinary share were both RMB1.61(US$0.22)for the third quarter of 2023.Cash and cash equivalents,restricted cash,short-term investments and time deposits were RMB36.48 billion(US$5.00 billion)as of September 30,2023,compared with RMB33.74 billion as of June 30,2023.Time deposits includerestricted short-term deposits,short-term deposits,restricted long-term deposits,current portion and non-current portion oflong-term deposits.Key Financial Results(in RMB billions,except for percentage)For the Three Months Ended%Changei September 30,June 30,September 30,2023 2023 2022 YoY QoQ Vehicle sales7.84 4.42 6.24 25.7%77.3%Vehicle margin-6.1%-8.6%11.6%-17.7pts 2.5pts Total revenues8.53 5.06 6.82 25.0%68.5%Gross(loss)profit(0.23)(0.20)0.92 -124.7%15.5%Gross margin-2.7%-3.9%13.5%-16.2pts 1.2pts Net loss3.89 2.80 2.38 63.6%38.6%Non-GAAP net loss2.79 2.67 2.22 25.5%4.5%Net loss attributable to ordinary shareholders3.89 2.80 2.38 63.6%38.6%Non-GAAP net loss attributable to ordinary shareholders2.79 2.67 2.22 25.5%4.5%Comprehensive loss attributable to ordinary shareholders4.01 1.93 0.69 481.1%107.9%i.Except for vehicle margin and gross margin,where absolute changes instead of percentage changes are presented Management Commentary“In 2023,XPENG was the first mover in reaching the inflection point for both the development and mass adoption of ADAS technologies.I believe thatover the next five years,ADAS technologies will experience increasing and massive acceptance by consumers.As we lead the nationwide rollout ofXNGP,XPENG will become the go-to smart EV brand for customers,”said Mr.He Xiaopeng,Chairman and CEO of XPENG.“In the third quarter of2023,our business stepped into the initial phase of a virtuous cycle.I am confident that the transformational adjustments we began to implement earlythis year will yield more positive results in 2024 and beyond,accelerating our virtuous cycle and rapid growth by the fourth quarter of 2024.”“XPENG vehicle deliveries have grown for nine consecutive months and our free cash flow has substantially improved,”said Dr.Hongdi Brian Gu,Honorary Vice Chairman and Co-President of XPENG.“Our new products and technology-driven cost controls are expected to result in notableimprovements to our gross margin.Leveraging these strengths,we expect even stronger free cash flow in the fourth quarter,marking the starting pointof our journey towards long-term scalable profitability.”Recent DevelopmentsDeliveries in October 2023Total deliveries were 20,002 vehicles in October 2023.As of October 31,2023,year-to-date total deliveries were 101,445 vehicles.XPENG 2023 Tech DayOn October 24,2023,XPENG hosted its fifth annual 1024 Tech Day in Guangzhou.The Company unveiled its cutting-edge technology roadmap forautonomous driving and mobility ecosystem,including its Smart EVs and robotics.ESG PerformanceOn October 11,2023,XPENG announced that Morgan Stanley Capital International(“MSCI”)has upgraded its MSCI ESG Rating for the Companyfrom“AA”to“AAA”,which is MSCIs highest rating and is given to companies that are leading their industries in managing ESG risks andopportunities.Launch of XPENG G9 2024 EditionOn September 19,2023,XPENG introduced XPENG G9 2024 Edition and commenced deliveries during the same month.Unaudited Financial Results for the Three Months Ended September 30,2023Total revenues were RMB8.53 billion(US$1.17 billion)for the third quarter of 2023,representing an increase of 25.0%from RMB6.82 billion for thesame period of 2022 and an increase of 68.5%from RMB5.06 billion for the second quarter of 2023.Revenues from vehicle sales were RMB7.84 billion(US$1.08 billion)for the third quarter of 2023,representing an increase of 25.7%from the sameperiod of 2022,and an increase of 77.3%from the second quarter of 2023.The year-over-year and quarter-over-quarter increases were mainlyattributable to the accelerating sales growth of the G6 in the third quarter of 2023.Revenues from services and others were RMB0.69 billion(US$0.09 billion)for the third quarter of 2023,representing an increase of 17.7%fromRMB0.58 billion for the same period of 2022 and an increase of 7.4%from RMB0.64 billion for the second quarter of 2023.The year-over-year andquarter-over-quarter increases were mainly attributable to the increases of maintenance,supercharging and auto financing services sales,which werein line with higher accumulated vehicle sales.Cost of sales was RMB8.76 billion(US$1.20 billion)for the third quarter of 2023,representing an increase of 48.4%from RMB5.90 billion for thesame period of 2022 and an increase of 66.5%from RMB5.26 billion for the second quarter of 2023.The year-over-year and quarter-over-quarterincreases were mainly in line with vehicle deliveries as described above.In addition,the year-over-year increase was attributable to inventorywrite-downs amounting to RMB0.23 billion related to the model G3i as management lowered its forecasted sales due to stronger-than-expectedmarket demands for newly launched vehicle models.Gross margin was negative 2.7%for the third quarter of 2023,compared with 13.5%for the same period of 2022 and negative 3.9%for the secondquarter of 2023.Vehicle margin was negative 6.1%for the third quarter of 2023,compared with 11.6%for the same period of 2022 and negative 8.6%for the secondquarter of 2023.The year-over-year decrease was explained by(i)the inventory write-downs related to the G3i,with a negative impact of 2.9percentage points on vehicle margin for the third quarter of 2023,and(ii)increased sales promotions,and the expiry of new energy vehicle subsidies.The quarter-over-quarter increase was primarily attributable to the improvement in product mix of models and the cost reduction.Research and development expenses were RMB1.31 billion(US$0.18 billion)for the third quarter of 2023,representing a decrease of 12.9%fromRMB1.50 billion for the same period of 2022 and a decrease of 4.5%from RMB1.37 billion for the second quarter of 2023.The year-over-year andquarter-over-quarter decreases were mainly in line with timing and progress of new vehicle programs.Selling,general and administrative expenses were RMB1.69 billion(US$0.23 billion)for the third quarter of 2023,representing an increase of 4.0%from RMB1.63 billion for the same period of 2022 and an increase of 9.6%from RMB1.54 billion for the second quarter of 2023.The year-over-yearand quarter-over-quarter increases were primarily attributable to the higher commission paid to the franchised stores.Loss from operations was RMB3.16 billion(US$0.43 billion)for the third quarter of 2023,compared with RMB2.18 billion for the same period of 2022and RMB3.09 billion for the second quarter of 2023.Non-GAAP loss from operations,which excludes share-based compensation expenses,was RMB3.04 billion(US$0.42 billion)for the third quarterof 2023,compared with RMB2.02 billion for the same period of 2022 and RMB2.96 billion for the second quarter of 2023.Net loss was RMB3.89 billion(US$0.53 billion)for the third quarter of 2023,compared with RMB2.38 billion for the same period of 2022 and RMB2.80billion for the second quarter of 2023.Fair value loss on derivative liability was RMB0.97 billion(US$0.13 billion)for the third quarter of 2023.This non-cash loss resulted from thefluctuation in the fair value of the forward share purchase agreement,measured through profit or loss,related to the issuance of shares by theCompany for strategic minority investment by the Volkswagen Group.Non-GAAP net loss,which excludes share-based compensation expenses and fair value loss on derivative liability,was RMB2.79 billion(US$0.38billion)for the third quarter of 2023,compared with RMB2.22 billion for the same period of 2022 and RMB2.67 billion for the second quarter of 2023.Net loss attributable to ordinary shareholders of XPENG was RMB3.89 billion(US$0.53 billion)for the third quarter of 2023,compared withRMB2.38 billion for the same period of 2022 and RMB2.80 billion for the second quarter of 2023.Non-GAAP net loss attributable to ordinary shareholders of XPENG,which excludes share-based compensation expenses and fair value loss onderivative liability,was RMB2.79 billion(US$0.38 billion)for the third quarter of 2023,compared with RMB2.22 billion for the same period of 2022 andRMB2.67 billion for the second quarter of 2023.Basic and diluted net loss per ADS were both RMB4.49(US$0.62)for the third quarter of 2023,compared with RMB2.77 for the third quarter of2022 and RMB3.25 for the second quarter of 2023.Non-GAAP basic and diluted net loss per ADS were both RMB3.23(US$0.44)for the third quarter of 2023,compared with RMB2.59 for the thirdquarter of 2022 and RMB3.10 for the second quarter of 2023.Balance SheetsAs of September 30,2023,the Company had cash and cash equivalents,restricted cash,short-term investments and time deposits of RMB36.48billion(US$5.00 billion),compared with RMB38.25 billion as of December 31,2022 and RMB33.74 billion as of June 30,2023.Business OutlookFor the fourth quarter of 2023,the Company expects:Deliveries of vehicles to be between 59,500 and 63,500,representing a year-over-year increase of approximately 168.0%to 186.0%.Total revenues to be between RMB12.7 billion and RMB13.6 billion,representing a year-over-year increase ofapproximately 147.1%to 164.6%.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 CallThe Companys management will host an earnings conference call at 8:00 AM U.S.Eastern Time on November 15,2023(9:00 PM Beijing/Hong KongTime on November 15,2023).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 5minutes prior to the scheduled call start time.Upon registration,each participant will receive dial-in details to join the conference call.Event Title:XPENG Third Quarter 2023 Earnings Conference CallPre-registration link:https:/s1.c- Additionally,a live and archived webcast of the conference call will be available on the Companys investor relations website at http:/.A replay of the conference call will be accessible approximately an hour after the conclusion of the call until November 22,2023,by dialing thefollowing telephone numbers:United States:[phone]International:[phone]Hong Kong,China:800-930-639Mainland China:400-120-9216Replay Access Code:10034271 About XPENGXPENG is a leading Chinese Smart EV company that designs,develops,manufactures,and markets Smart EVs that appeal to the large and growingbase of technology-savvy middle-class consumers.Its mission is to drive Smart EV transformation with technology,shaping the mobility experience ofthe future.In order to optimize its customers mobility experience,XPENG develops in-house its full-stack advanced driver-assistance systemtechnology 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 CompanysSmart EV