On August 23, Xiaopeng Motors (NYSE: XPEV/HK.9868) today announced its unaudited financial data for the second quarter ended June 30, 2022.

Total vehicle deliveries in the second quarter of 2022 were 34,422, an increase of 98% from 17,398 in the same period in 2021.

P7 deliveries in the second quarter of 2022 were 15,983, an increase of 39% from 11,522 in the same period in 2021.

P5 deliveries in the second quarter of 2022 were 12,848 units, of which more than 50% could support XPILOT3.0 or XPILOT3.5.

As of June 30, 2022, Xpeng Motors' sales network continued to expand, including 388 stores covering 142 cities.

The network of Xpeng Motors self-operated charging stations has been further expanded to 977, including 793 Xpeng Motors self-operated super charging stations and 184 destination charging stations.

Total revenue for the second quarter of 2022 was RMB 7.436 billion ($1.110 billion), an increase of 97.7% from the same period in 2021 and equivalent to the level in the first quarter of 2022.

Auto sales revenue in the second quarter of 2022 was RMB 6.938 billion ($1.036 billion), an increase of 93.6% from the same period in 2021.

Gross margin was 10.9% in the second quarter of 2022, compared to 11.9% in the same period in 2021, and 12.2% in the first quarter of 2022.

The auto margin, or gross profit from auto sales as a percentage of auto sales revenue, was 9.1% in the second quarter of 2022, compared to 11.0% in the same period in 2021, and 10.4% in the first quarter of 2022.

Cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits were RMB 41.339 billion (US$6.172 billion) as of June 30, 2022, compared with RMB as of March 31, 2022 41.714 billion yuan.

　　"Despite the impact of the resurgence of the new crown epidemic in some parts of the country, Xpeng Motors' delivery volume maintained a strong growth momentum in the second quarter." He Xiaopeng, chairman and CEO of Xpeng Motors, said, "We will continue to grow in 2022. We officially launched our flagship SUV G9 in September 2018. G9 is expected to become the industry's new benchmark for comfort, luxury and advanced technology in the mid-to-large SUV segment. With G9, we have taken electrification and intelligent technology to new heights. These New technologies will be integrated into our future models, and combined with outstanding product design, we will deliver an unparalleled standard of driving experience."

　　"We will accelerate the pace of new product launches and enrich our product matrix in the price range of RMB 150,000 to RMB 500,000. We plan to launch two competitive models in 2023 to further drive rapid sales growth," concluded He Xiaopeng.

　　"Our solid financial performance in the second quarter of 2022 reflects our ability to meet strong market demand despite supply chain challenges and cost inflation," said Dr. Gu Hongdi, Honorary Vice Chairman and President of Xpeng Motors. " We believe our R&D investment will pay off in the coming quarters with the launch of several new products, unlocking new growth potential and strengthening our leading position in the smart electric vehicle industry."

Recent developments in July 2022 deliveries

　　Total deliveries in July 2022 were 11,524, up 43% year-on-year, including 6,397 P7, 3,608 P5 and 1,519 G3 and G3i.

As of July 31, 2022, the cumulative total deliveries for the year reached 80,507 units, a year-on-year increase of 108%.

Unaudited Financial Results for the Three Months Ended June 30, 2022

　　Total revenue for the second quarter of 2022 was RMB 7.436 billion (US$ 1.110 billion), an increase of 97.7% from RMB 3.761 billion in the same period in 2021 and a decrease of 0.2% from RMB 7.455 billion in the first quarter of 2022.

　　Auto sales revenue in the second quarter of 2022 was RMB 6,938 million (US$ 1,036 million), an increase of 93.6% from RMB 3,584 million in the same period in 2021, and a decrease of 0.9% from RMB 6,999 million in the first quarter of 2022.

The year-on-year increase was mainly due to higher vehicle deliveries (particularly P7 and P5), with vehicle sales revenue remaining stable compared to the first quarter of 2022.

　　Services and other revenue recorded in the second quarter of 2022 was RMB 498 million (US$74 million), an increase of 181.4% from RMB 177 million in the same period of 2021 and an increase of 9.1% from RMB 456 million in the first quarter of 2022 %.

The year-over-year and quarter-over-quarter increases were primarily due to the increase in revenue from service, parts and accessories sales as cumulative vehicle deliveries increased.

　　Cost of sales in the second quarter of 2022 was RMB 6,627 million (US$ 989 million), an increase of 100.0% from RMB 3,313 million in the same period in 2021, and an increase of 1.3% from RMB 6,544 million in the first quarter of 2022.

The year-over-year increase was broadly in line with the vehicle deliveries described above, while the sequential change was primarily due to higher raw material and battery costs.

　　Gross profit margin in the second quarter of 2022 was 10.9%, compared to 11.9% in the second quarter of 2021 and 12.2% in the first quarter of 2022.

The automotive margin was 9.1% in the second quarter of 2022, compared to 11.0% in the same period in 2021 and 10.4% in the first quarter of 2022.

The quarter-over-quarter decrease was primarily due to higher battery costs, partially offset by higher revenue from selling price adjustments.

　　Research and development spending in the second quarter of 2022 was RMB 1.265 billion (US$189 million), an increase of 46.5% from RMB 864 million in the same period in 2021, and an increase of 3.6% from RMB 1.221 billion in the first quarter of 2022.

The year-over-year and quarter-over-quarter increases were primarily attributable to (i) an increase in employee compensation due to an increase in R&D personnel; and (ii) an increase in spending related to the development of new models to support future revenue growth.

　　Selling, general and administrative expenses for the second quarter of 2022 were RMB 1,665 million (US$249 million), an increase of 61.5% from RMB 1,031 million for the same period in 2021, and comparable to the level in the first quarter of 2022.

The year-over-year increase was primarily attributable to the expansion of our sales network and related personnel costs, as well as an increase in franchise store sales commissions.

　　Operating loss for the second quarter of 2022 was RMB 2,091 million ($312 million), compared to RMB 1,443 million for the same period in 2021 and RMB 1,920 million for the first quarter of 2022.

The increase in quarter-over-quarter loss was mainly attributable to the decrease in gross profit and the increase in operating expenses as described above.

　　Non-GAAP operating loss (excluding share-based compensation expenses) for the second quarter of 2022 was RMB 1,854 million ($277 million), compared to RMB 1,345 million for the same period in 2021 and RMB 1,345 million for the same period in 2021. The fourth quarter was RMB 1.748 billion.

　　Foreign exchange loss on foreign currency transactions in the second quarter of 2022 was RMB 938 million ($140 million), mainly due to the impact of the revaluation of RMB-denominated assets held by subsidiaries with U.S. dollar as the functional currency in the second quarter of 2022 and RMB depreciation against the dollar.

　　Net loss for the second quarter of 2022 was RMB 2,701 million ($403 million), compared to RMB 1,195 million for the same period in 2021 and RMB 1,701 million for the first quarter of 2022.

balance sheet

　　As of June 30, 2022, the Company had cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits of RMB 41.339 billion ($6.172 billion), compared to March 31, 2022 It was RMB 41.714 billion.

Business Outlook

　　For the third quarter of 2022, the company expects:

　　Vehicle deliveries will range from 29,000 to 31,000 units, representing a year-on-year increase of 13.0% to 20.8%.

　　Total revenue will range from RMB 6.8 to 7.2 billion, representing a year-on-year increase of 18.9% to 25.9%.

　　The above outlook is based on current market conditions and reflects Xpeng Motors' preliminary estimates of the market and operating environment as well as customer needs, which are subject to change.

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