Xiaopeng Motors released its financial report for the third quarter, with a total revenue of 6.82 billion yuan, an increase of 19.3% year-on-year

　　On November 30, Xiaopeng Motors (NYSE:XPEV/HKEX:09868) released its financial report for the third quarter of 2022.

Xpeng Motors' total revenue in the third quarter was 6.82 billion yuan ($960 million), up 19.3% from the same period in 2021.

Affected by the epidemic in some regions and the supply chain, the total vehicle deliveries in the third quarter were 29,570 vehicles, an increase of 15% from 25,666 vehicles in the same period in 2021.

　　At the subsequent performance meeting, He Xiaopeng, chairman and CEO of Xiaopeng Motors, explained a number of issues of concern to the market.

He said that Xiaopeng Motors is indeed going through a period full of challenges. In order to better achieve its long-term strategic goals, Xiaopeng Motors has carried out in-depth strategic review and organizational structure adjustment.

In the new organizational structure, He Xiaopeng will greatly reduce the direct participation of ecological enterprises. At the same time, he will focus more on the strategy, product planning and R&D of Xiaopeng Motors, promote the transformation and upgrading of the organization, and implement the production and research driven by customer value. The whole process of sales, sales and service makes the company as a whole more focused and efficient.

　　It is worth mentioning that in the third quarter, the gross profit rate of Xiaopeng Motors increased by 2.6 percentage points from the previous quarter.

At the same time, the net loss narrowed by 12% month-on-month, which reflects that Xiaopeng Motors has achieved initial results in improving operating efficiency.

He Xiaopeng said that in the next few quarters, the company will speed up the increase in sales volume and product average selling price. At the same time, through the platformization and modularization of models, it will achieve improvements in product development efficiency, cost control and supply chain management.

He specifically mentioned that with the large-scale delivery of the flagship SUV model G9, the reputation of G9's solid battery life and charging speed has won market recognition.

Xiaopeng Motors is confident that the G9 will become the top three in the pure electric SUV market of more than 300,000 yuan, and will further narrow the gap with the first place next year with the accumulation of word of mouth.

From the first quarter of next year, Xiaopeng Motors will launch three new products one after another.

　　Despite facing a recent trough in delivery volume in October, He Xiaopeng said that short-term delivery fluctuations will not affect Xiaopeng Motors' long-term strategy.

He firmly believes that the real smart car era will start in the second half of 2023 and gradually expand, and Xiaopeng Motors' leading edge in mass-produced autonomous driving technology will further help the company increase its market share.

At present, Xpeng Motors is accelerating the development of the next-generation all-scenario intelligent assisted driving product XNGP. It plans to launch the main functions in the third quarter of 2023 and support at least dozens of cities.

With the advancement of technology and the maturity of the supply chain, the hardware cost of XNGP is expected to continue to decline, helping to promote the accelerated popularization of XNGP among users across the country.

　　In the current complex external environment, a company's cash reserves are crucial to the realization of long-term strategies.

According to the financial report, as of the third quarter, Xiaopeng Motors has more than 40 billion yuan in cash in hand.

The management said that in the next few quarters, the company will further focus on strengthening cost control and improving operational efficiency.

In addition, thanks to the layout of the production capacity in the early stage, the demand for capital expenditure of Xiaopeng Motors will drop significantly in the next few years compared with this year.

With the increase in product sales in the future, the company's cash flow situation will also be greatly improved.

　　The management expects that the total delivery of Xiaopeng Motors in the fourth quarter will be about 20,000-21,000 vehicles, and the revenue is expected to be about RMB 4.8-5.1 billion.

Since the delivery volume of Xiaopeng Motors in November was about 5,800 units, this means that the delivery level of Xiaopeng Motors in December this year is expected to rise sharply and return to the 10,000-unit camp.

He Xiaopeng said that he will speed up the pace of internal organizational reform and management improvement in the next few quarters, and is confident in achieving the goal of ranking first in the smart car industry in the medium and long term.