零跑汽车(09863) - 2024 - 中期业绩

Performance Summary This section provides an overview of the company's key financial, sales, product, and operational achievements during the reporting period Financial Highlights In the first half of 2024, the company's financial performance significantly improved, with total revenue increasing by 52.2% year-on-year and gross margin turning positive to 1.1%, primarily due to economies of scale from sales growth and cost control - 2024 H1 Key Financial Indicators | Indicator | 2024 H1 | 2023 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 8.845 billion | RMB 5.813 billion | +52.2% | | Gross Margin | 1.1% | -5.9% | +7.0 percentage points | | Net Loss | RMB 2.212 billion | RMB 2.276 billion | Narrowed by 2.8% | | Adjusted Net Loss | RMB 2.016 billion | RMB 1.937 billion | Widened by 4.1% | | R&D Expenses | RMB 1.221 billion | RMB 823 million | +48.4% | | Net Cash from Operating Activities | RMB 268 million | RMB 152 million | +76.4% | - The primary reason for the net loss not significantly narrowing was the company's increased R&D investment, particularly in new vehicle development and intelligent driving technologies (such as "end-to-end large models")[2] Sales Performance The company's vehicle deliveries in the first half of the year increased by nearly 95% year-on-year, reaching 86,696 units, demonstrating strong growth momentum, with new models C10 and C16 performing excellently after launch - Total vehicle deliveries were 86,696 units, a year-on-year increase of 94.8%[3] - Strong performance of new models: C10 delivered 24,106 units since its launch in March; C16 accumulated over 10,000 pre-orders in its first month of launch[3] - The company achieved a cumulative delivery milestone of 400,000 new energy vehicles in early July 2024[4] Products and R&D In the first half of the year, two new models, C10 and C16, were successfully launched, and C11 and C01 underwent technological upgrades, forming a C-series product matrix covering the RMB 100,000-200,000 price range, while the company continued to invest in intelligent cockpits and intelligent driving - Successfully launched two new models, C10 and C16, and integrated the LEAP 3.0 technology architecture into C11 and C01, forming a product matrix covering the RMB 100,000-200,000 price range[5] - Released the LEAP 3.0 technology architecture, covering six major areas including E/E architecture, intelligent cockpit, and intelligent driving, with the intelligent cockpit initially equipped with the Qualcomm 8295 chip and achieving AI large model integration in vehicles[7] - Actively investing in "end-to-end large model" intelligent driving system R&D, establishing an "Intelligent Technology Research Institute," and planning to launch urban intelligent driving functions (CNAP) based on large models within 2025[7] - Currently, 7 new models are under development, with the first global B-platform model, B10, to be unveiled at the Paris Motor Show in October 2024[8] Sales Network and Globalization The company adheres to the "1+N" channel model, continuously expanding its sales and service network, covering 187 cities by the end of June, while its globalization strategy is progressing steadily with the joint venture "Leapmotor International" now operational - As of June 30, 2024, the company had 474 sales stores and 328 service stores, covering 187 cities, with plans to accelerate channel penetration in the second half of the year[9] - Established a joint venture "Leapmotor International" with Stellantis Group (Leapmotor holding 49%, Stellantis holding 51%) responsible for overseas business[10] - Plans to sell C10 and T03 in Europe starting September 2024, expand to over 200 European sales outlets by year-end, and enter Asia-Pacific, Middle East & Africa, and South American markets in Q4[10] Environmental, Social and Governance (ESG) The company received international recognition in ESG, achieving an "AA" rating in its first MSCI ESG assessment, ranking among global peers, and obtaining EcoVadis Corporate Social Responsibility Bronze Medal certification - Achieved an "AA" rating in its first MSCI ESG assessment, placing it among the leading global peers[11] - Obtained EcoVadis Corporate Social Responsibility (CSR) Bronze Medal certification, supporting the external supply business of its three-electric components[11] Management Discussion and Analysis This section offers a detailed analysis of the company's financial performance, liquidity, capital resources, and risk management strategies Financial Performance Analysis In the first half of 2024, the company's total revenue increased by 52.2% year-on-year, primarily driven by increased vehicle deliveries, and gross margin significantly improved from -5.9% to 1.1%, achieving profitability Revenue Total revenue for the first half was RMB 8.845 billion, a 52.2% year-on-year increase, primarily driven by higher sales of electric vehicles and components, which saw a 52.3% year-on-year increase - Revenue Composition (For the six months ended June 30) | Revenue Category | 2024 H1 (RMB) | 2023 H1 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Sales of electric vehicles and components | RMB 8.836 billion | RMB 5.803 billion | +52.3% | | Service revenue | RMB 9.1 million | RMB 9.9 million | -8.1% | | Total Revenue | RMB 8.845 billion | RMB 5.813 billion | +52.2% | Gross Profit and Gross Margin Gross profit for the first half reached RMB 100 million, compared to a gross loss of RMB 342 million in the same period last year, with gross margin significantly improving from -5.9% to 1.1% - Gross Profit and Gross Margin Change (For the six months ended June 30) | Indicator | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Gross Profit | RMB 100 million | RMB -342 million | | Gross Margin | 1.1% | -5.9% | Operating Expenses All operating expenses increased in the first half, with sales expenses rising by 10.0%, administrative expenses by 10.0%, and R&D expenses surging by 48.4% due to new vehicle projects and intelligent driving technology investments - Operating Expenses Details (For the six months ended June 30) | Expense Item | 2024 H1 (RMB) | 2023 H1 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Sales expenses | RMB 903 million | RMB 821 million | +10.0% | | Administrative expenses | RMB 435 million | RMB 396 million | +10.0% | | R&D expenses | RMB 1.221 billion | RMB 823 million | +48.4% | Loss Situation Despite improved gross profit, operating loss for the first half was RMB 2.395 billion, a slight 2.6% year-on-year increase, due to a significant rise in R&D expenses, while net loss was RMB 2.212 billion, a slight narrowing compared to the same period last year - Loss Indicators (For the six months ended June 30) | Indicator | 2024 H1 (RMB) | 2023 H1 (RMB) | | :--- | :--- | :--- | | Operating Loss | RMB 2.395 billion | RMB 2.334 billion | | Net Loss | RMB 2.212 billion | RMB 2.276 billion | | Basic and Diluted Loss Per Share | RMB 1.65 | RMB 1.99 | Liquidity and Capital Resources As of June 30, 2024, the company held ample liquidity totaling RMB 16.49 billion, including cash, financial assets, and deposits, with net cash generated from operating activities in the first half increasing year-on-year - Liquidity and Cash Flow (As of June 30, 2024) | Indicator | Amount (RMB) | Comparative Period (2023 H1) | | :--- | :--- | :--- | | Total Liquidity | RMB 16.491 billion | - | | Net Cash from Operating Activities | RMB 268 million | RMB 152 million | | Free Cash Flow | RMB -482 million | RMB -449 million | - As of June 30, 2024, capital commitments amounted to RMB 3.35 billion, primarily for production base construction[19] Non-IFRS Measures To better reflect core operating performance, the company disclosed adjusted net loss (non-IFRS), which adds back share-based payment expenses to net loss, with the adjusted net loss for the first half of 2024 being RMB 2.016 billion - Reconciliation of Net Loss to Adjusted Net Loss (For the six months ended June 30) | Item (RMB '000) | 2024 | 2023 | | :--- | :--- | :--- | | Net Loss | (2,211,700) | (2,276,100) | | Add: Share-based payment expenses | 195,500 | 339,600 | | Adjusted Net Loss | (2,016,200) | (1,936,500) | Risk Management The company's primary financial risks are foreign exchange risk and interest rate risk, though it believes there are no significant direct foreign exchange risks currently due to RMB being its functional currency, and it has not used financial instruments for hedging interest rate risk - Foreign Exchange Risk: The company uses RMB as its functional currency and believes there are no significant direct foreign exchange risks currently[23] - Interest Rate Risk: Risk primarily arises from floating-rate borrowings, and the company has not engaged in hedging[23] Other Disclosures This section provides additional disclosures regarding the company's human resources and corporate governance practices Human Resources As of June 30, 2024, the Group had 10,844 full-time employees, with manufacturing and R&D personnel constituting the majority, reflecting the company's emphasis on production and technological innovation - Employee Structure (As of June 30, 2024) | Function | Number of Employees | Percentage of Total (%) | | :--- | :--- | :--- | | Manufacturing | 5,115 | 47.2 | | R&D | 3,823 | 35.3 | | Sales and Marketing | 1,170 | 10.8 | | Supply Chain Management | 284 | 2.6 | | General and Administrative | 452 | 4.1 | | Total | 10,844 | 100.0 | Corporate Governance During the reporting period, the company complied with most provisions of the Corporate Governance Code, with one deviation where the roles of Chairman and CEO are combined and held by Mr. Zhu Jiangming, an arrangement the Board believes facilitates leadership consistency and decision-making efficiency - The company complied with the Corporate Governance Code, but deviated from Code Provision C.2.1, where the roles of Chairman and CEO are not separated and are held concurrently by Mr. Zhu Jiangming[27] - The Board does not recommend the payment of any interim dividend[27] Interim Condensed Consolidated Financial Statements This section presents the company's consolidated financial statements, including the statement of profit or loss, financial position, and cash flows for the interim period Consolidated Statement of Profit or Loss In the first half of 2024, the company recorded total revenue of RMB 8.845 billion and a gross profit of RMB 100 million, successfully reversing the loss from the same period last year, though operating loss was RMB 2.395 billion due to increased expenses - 2024 H1 Consolidated Statement of Profit or Loss Summary (RMB '000) | Item | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Revenue | 8,845,408 | 5,813,134 | | Gross Profit/(Loss) | 100,225 | (341,760) | | Operating Loss | (2,395,029) | (2,333,572) | | Loss Before Income Tax | (2,211,720) | (2,276,062) | | Loss for the period attributable to owners of the Company | (2,211,736) | (2,276,109) | Consolidated Statement of Financial Position As of June 30, 2024, the company's total assets were RMB 26.339 billion, total liabilities were RMB 15.892 billion, and total equity was RMB 10.446 billion, with both total assets and total equity decreasing compared to the end of 2023 - Consolidated Statement of Financial Position Summary (RMB '000) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 26,338,706 | 28,453,417 | | Non-current assets | 7,062,358 | 5,983,677 | | Current assets | 19,276,348 | 22,469,740 | | Total Liabilities | 15,892,458 | 15,955,221 | | Non-current liabilities | 2,290,075 | 2,001,517 | | Current liabilities | 13,602,383 | 13,953,704 | | Total Equity | 10,446,248 | 12,498,196 | Consolidated Statement of Cash Flows In the first half of 2024, operating activities generated a net cash inflow of RMB 268 million, an improvement from the prior year, but significant investing activities resulted in a net decrease of RMB 2.538 billion in cash and cash equivalents - 2024 H1 Consolidated Statement of Cash Flows Summary (RMB '000) | Item | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Net cash from operating activities | 267,554 | 151,739 | | Net cash used in investing activities | (2,460,099) | (604,671) | | Net cash (used in)/from financing activities | (345,475) | 610,202 | | Net decrease in cash and cash equivalents | (2,538,020) | 157,270 | | Cash and cash equivalents at end of period | 9,197,853 | 7,108,124 | Notes to the Financial Statements This section provides detailed notes and explanations supporting the interim condensed consolidated financial information, including segment data, expense breakdowns, and key asset and liability details Segment and Revenue Information The company treats its entire business as a single operating segment, focusing on the production, R&D, and sales of new energy vehicles in China, with vehicle and component sales being the absolute core revenue source - Revenue by Geographical Region (For the six months ended June 30) | Region | 2024 (RMB '000) | 2023 (RMB '000) | | :--- | :--- | :--- | | Mainland China | 8,781,778 | 5,754,852 | | Others | 63,630 | 58,282 | | Total | 8,845,408 | 5,813,134 | - Revenue by Category (For the six months ended June 30) | Category | 2024 (RMB '000) | 2023 (RMB '000) | | :--- | :--- | :--- | | Sales of vehicles and components | 8,836,298 | 5,803,226 | | Provision of services | 9,110 | 9,908 | | Total | 8,845,408 | 5,813,134 | Key Expense Items Total expenses for the first half were RMB 11.304 billion, with raw materials and consumables used being the largest expense item at RMB 8.035 billion, followed by employee benefit expenses at RMB 1.433 billion - Summary of Expenses by Nature (For the six months ended June 30) | Expense Item | 2024 (RMB '000) | 2023 (RMB '000) | | :--- | :--- | :--- | | Raw materials and consumables used | 8,035,177 | 5,655,527 | | Employee benefit expenses | 1,433,410 | 1,254,024 | | Advertising and promotion expenses | 541,034 | 466,901 | | Depreciation and amortization expenses | 320,755 | 296,954 | | Total | 11,304,136 | 8,194,027 | Key Assets and Liabilities As of June 30, 2024, the company's balance sheet shows a decrease in inventory and a significant reduction in trade receivables primarily due to the receipt of government subsidies, while trade payables remained at a high level and total borrowings slightly decreased Inventories As of the end of June, total inventories amounted to RMB 1.649 billion, a decrease from RMB 1.719 billion at the end of 2023, with raw materials and spare parts accounting for RMB 886 million and finished goods for RMB 892 million - Inventory Composition (RMB '000) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Raw materials and spare parts | 885,844 | 777,897 | | Finished goods | 891,833 | 1,105,957 | | Less: Impairment provision | (128,945) | (164,382) | | Net Inventories | 1,648,732 | 1,719,472 | Trade and Bills Receivables As of the end of June, total trade and bills receivables amounted to RMB 550 million, a significant decrease from RMB 926 million at the end of 2023, primarily due to the receipt of government subsidies for new energy vehicles - Trade and Bills Receivables Composition (RMB '000) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Bills receivable | 252,779 | 8,048 | | Government subsidies receivable | 157,008 | 846,206 | | Amounts due from customers | 133,419 | 70,312 | | Others and impairment | 6,593 | 1,771 | | Total | 549,809 | 926,337 | Borrowings As of the end of June, the company's total borrowings amounted to RMB 2.183 billion, a decrease from RMB 2.473 billion at the end of 2023, with most borrowings being secured - Total Borrowings (RMB '000) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current borrowings | 1,250,546 | 1,581,157 | | Non-current borrowings | 932,396 | 891,811 | | Total Borrowings | 2,182,942 | 2,472,968 | Trade and Bills Payables As of the end of June, total trade and bills payables amounted to RMB 9.420 billion, largely consistent with RMB 9.847 billion at the end of 2023, remaining at a high level - Trade and Bills Payables (RMB '000) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade payables | 5,160,281 | 5,057,648 | | Bills payable | 4,259,969 | 4,789,225 | | Total | 9,420,250 | 9,846,873 |