Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens for the old story and R's clue delivery! According to the news on the evening of August 18, Beijing time, Xiaopeng Motor today released its results for the second quarter ended June 30: revenue was 5.06 billion yuan, down 32% from a year earlier, up 25.5% from a month earlier; a net loss of 2.8 billion yuan, compared with a net loss of 2.7 billion yuan in the second quarter of 2022 and a net loss of 2.34 billion yuan in the first quarter of 2023 Without Non-GAAP, the adjusted net loss was 2.67 billion yuan, compared with a net loss of 2.46 billion yuan in the second quarter of 2022 and 2.21 billion yuan in the first quarter of 2023.

After the release of the results, Xiaopeng Co-founder, Chairman and CEO he Xiaopeng, Vice Chairman and President Gu Hongdi, Vice President of Investment Charles Zhang, and Vice President of Finance and Accounting Wu Jiaming attended the subsequent conference call to interpret the main points of the results and answer analysts' questions.

The following is the full text of the earnings meeting: Morgan Stanley analyst Tim Hsiao: my first question is about the improvement in Xiaopeng's delivery. We see that the third-quarter guidelines show that the average (delivery) in August and September can reach 14000 to 15000, and the supply of spare parts has improved. However, due to the long waiting period, it seems to have affected the acquisition of new orders for Xiaopeng G6 in the past period of time.

Therefore, I would like to ask the management, when is the supply of spare parts expected to be fully resolved? After the solution, what countermeasures does the management have to restore the growth momentum of Xiaopeng G6 order? In the briefing, Xiaopeng also mentioned that the monthly delivery of the G6 will gradually reach 10000. Is this the level of steady-state delivery in the future? For follow-up including Xiaopeng P7i, G9i or other new products in the future, does management need to consider replacing or increasing suppliers of parts to avoid the recurrence of the above bottlenecks?

He Xiaopeng: we believe that the competitiveness of the Xiaopeng G6 in the 20-300000 price range is unique. At present, the order level is completely moving forward in a very strong manner. At present, the main challenge is that the Max version is not fully prepared on some intelligent related components.

We can also see a rapid climb every month in August, September and October. Our goal is to deliver more than 10,000 Xiaopeng G6 in a single month in the fourth quarter. At present, the most important thing is that in the entire production, supply and marketing planning and internal planning, we are decomposing how to achieve the goal of more than 10,000 or more a month.

We can see that after the launch of the "rocking structure", Xiaopeng has launched a platform in power, whole vehicle and intelligence. on the one hand, it can reduce costs, but another very good situation is that the preparation of our factory and supply chain will be easier. We will supply a large number of these capabilities in a very large number of models, which will lead to our considerable ability to achieve larger support in the core supply chain in the future. It is possible that we will have similar capabilities in many cars.

From Xiaopeng's current situation, including Xiaopeng G6 after the launch of a very good response from users, all the supply chain are climbing, I believe the situation will be better and better.

Morgan Stanley analyst Tim Hsiao: my second question concerns recent price competition. I would like to ask the management what does the industry think of this round of resumption of the price war? What will be the impact on the price of Xiaopeng's new car after the release of competitive models, including Tesla? At present, will the prices and marketing strategies of Xiaopeng G6 and subsequent models including G9i and X9 be adjusted accordingly? If necessary, how will management consider the impact on bicycle gross profit margin in the next few quarters? I know that Xiaopeng Motor may have a more specific cost reduction plan next year, but is there any way for management to offset the short-term price fluctuations through cooperation with the supply chain?

Gu Hongdi: first of all, I would like to emphasize that the resumption of price war in the industry will not affect our sales, especially the sales growth of Xiaopeng G6. Because when we first priced the G6, we already took the pressure of peer competition into account. So the price war will not affect us. But before discussing product pricing and gross profit margin, I would like to emphasize that Xiaopeng's current strategic goal is to regain market growth and scale, which is one of our most important strategic priorities this year. I believe you can see that our growth momentum is good at present, and we expect Xiaopeng to gradually return to the highest single-quarter income level in history. In the long run, this is of great help to the company to achieve economies of scale.

Another focus of the company is that we hope to achieve solid cash flow in the second half of this year. As you have just heard, with the growth of delivery volume, we maintain a positive attitude towards the operating cash flow in the second half of this year.

As for the trend of gross profit margin, this question should be answered by Wu Jiaming. Of course, we may not be able to give specific guidance now, but I believe his answer can bring some enlightenment to your analysis.

Wu Jiaming: as General Gu mentioned, Xiaopeng's current focus is very clear, that is, to increase product sales and production scale, which is also very helpful to improve the gross profit margin. As we mentioned earlier, we have a batch of G3i orders in Europe in the second quarter and some European orders will be delivered in the third quarter. Therefore, with the increase in delivery volume in the third and fourth quarters, we expect the company to achieve steady growth. With the improvement of the product sales mix in the second half of the year, we expect the company's gross profit margin to become positive in the fourth quarter.

In addition, Mr. Gu just talked about cash flow. I have a few words to add. With the increase in our delivery volume in the second half of this year, we have seen a significant improvement in cash flow in the past second quarter. In the second half of this year, we are very confident in the operating cash flow and firmly believe that we can achieve a healthy and stable cash balance by the end of this year.

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