XPENG(XPEV)2023-09-28 16:00Financial Performance - Total vehicle deliveries decreased by 39.9% to 41,435 in the six months ended June 30, 2023, compared to 68,983 in the same period of 2022[5]. - Total revenues were RMB9.10 billion, a decrease of 38.9% from RMB14.89 billion in the six months ended June 30, 2022[14]. - Revenues from vehicle sales dropped by 43.0% to RMB7.94 billion, down from RMB13.94 billion in the same period of 2022[14]. - Gross margin was negative 1.4%, compared to 11.6% in the six months ended June 30, 2022[6]. - Net loss attributable to ordinary shareholders was RMB5.14 billion, compared to RMB4.40 billion in the same period of 2022[19]. - Gross loss for the period was RMB130,359, compared to a gross profit of RMB1,720,089 in the previous year, reflecting a significant shift in profitability[68]. - Net loss attributable to ordinary shareholders was RMB5,141,610 for the six months ended June 30, 2023, compared to a net loss of RMB4,401,649 in the same period of 2022, representing an increase in loss of about 16.8%[72]. - The net loss for the six months ended June 30, 2023, was RMB5,141,610, compared to a net loss of RMB4,401,649 for the same period in 2022, indicating a deterioration in financial performance[83]. - Cash used in operating activities for the six months ended June 30, 2023, was RMB6,221,971, significantly higher than RMB2,286,271 for the same period in 2022[83]. - The Group incurred net losses of RMB5,141,610, compared to RMB4,401,649 for the same period in 2022, indicating an increase in losses of approximately 16.8%[118]. Cash and Liquidity - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB33.74 billion as of June 30, 2023, down from RMB38.25 billion as of December 31, 2022[7]. - Cash provided by financing activities was RMB2,451,746 for the six months ended June 30, 2023, compared to RMB1,723,814 in the same period of 2022, showing an increase in financing[89]. - The total cash, cash equivalents, and restricted cash at the end of the period was RMB11,686,319, down from RMB14,714,046 at the beginning of the period[89]. - As of June 30, 2023, the total cash and cash equivalents amounted to RMB11,010,447, a decrease from RMB14,607,774 as of December 31, 2022, representing a decline of approximately 24.5%[148]. - The Group's balance of cash and cash equivalents, restricted cash, and short-term deposits as of June 30, 2023, was RMB29,240,552, providing sufficient liquidity for the next twelve months[119]. - Management concluded that the existing balance of cash and cash equivalents provides sufficient liquidity to meet working capital requirements and contractual obligations for the next twelve months[122]. Research and Development - Research and development expenses increased by 7.1% to RMB2.66 billion, up from RMB2.49 billion in the same period of 2022[16]. - Research and development expenses increased to RMB2,662,961 for the six months ended June 30, 2023, compared to RMB2,486,237 in the same period of 2022, marking an increase of approximately 7.1%[68]. Strategic Partnerships and Product Launches - The company launched the G6 Ultra Smart Coupe SUV on June 29, 2023, with deliveries commencing in July 2023[11]. - XPENG entered a strategic partnership with Volkswagen for a minority investment of approximately US$700 million on July 26, 2023[11]. - XPENG announced a partnership with DiDi Global Inc. to accelerate the adoption of Smart EVs on August 27, 2023[12]. Assets and Liabilities - Total assets decreased from RMB71,491,006 as of December 31, 2022, to RMB66,684,664 as of June 30, 2023, representing a decline of approximately 6.3%[59]. - Total current liabilities decreased slightly from RMB24,114,853 as of December 31, 2022, to RMB23,432,423 as of June 30, 2023, a reduction of about 2.8%[62]. - Long-term borrowings increased from RMB4,613,057 as of December 31, 2022, to RMB5,388,395 as of June 30, 2023, an increase of approximately 16.8%[62]. - Total shareholders' equity decreased from RMB36,910,665 as of December 31, 2022, to RMB32,672,963 as of June 30, 2023, a decline of about 11.5%[65]. - The accumulated deficit amounted to RMB30,472,526, up from RMB25,330,916 as of December 31, 2022, reflecting a year-to-date increase of approximately 20.5%[118]. Inventory and Write-downs - The company recorded an inventory write-down of RMB353,090 for the six months ended June 30, 2023, compared to RMB23,217 in the same period of 2022, reflecting challenges in inventory management[83]. Share Capital and Equity - The company issued 1,731,103,684 ordinary shares as of June 30, 2023, compared to 1,725,402,056 shares as of December 31, 2022, indicating an increase in share capital[77]. Government Subsidies and Revenue Recognition - Government subsidies for electric vehicle purchases are considered part of the transaction price, impacting the revenue recognized[189]. - The Group recognizes revenue from vehicle sales when control is transferred to customers, with multiple performance obligations including vehicle sales, free battery charging, and warranties[181]. - Revenue from services embedded in sales contracts includes free battery charging and extended warranties, recognized under ASC 606[200].