2025-08-19 09:12Operational and Financial Highlights XPENG achieved record performance in the second quarter of 2025, with vehicle deliveries surging 241.6% year-over-year to 103,181 units, driving a 125.3% increase in total revenues to RMB 18.27 billion, while profitability significantly improved with gross margin reaching 17.3% and vehicle margin expanding to 14.3%, maintaining a strong liquidity position with RMB 47.57 billion in cash and equivalents Q2 2025 Key Financial Metrics | Metric | Q2 2025 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Total Deliveries | 103,181 | +241.6% | +9.8% | | Total Revenues (RMB) | 18.27B | +125.3% | +15.6% | | Vehicle Sales Revenue (RMB) | 16.88B | +147.6% | +17.5% | | Gross Margin | 17.3% | +3.3 ppts | +1.7 ppts | | Vehicle Margin | 14.3% | +7.9 ppts | +3.8 ppts | | Net Loss (RMB) | 0.48B | -62.8% | -28.1% | - Cash reserves, including cash equivalents, restricted cash, short-term investments, and time deposits, stood at RMB 47.57 billion (US$6.64 billion) as of June 30, 20253428 - The company's physical sales network expanded to 677 stores across 224 cities, and its self-operated charging network grew to 2,348 stations, including 1,304 ultra-fast charging stations4 Management Commentary Management highlighted the record-breaking performance in Q2 2025 across all key metrics, with the CEO emphasizing strengthened technology leadership from next-generation platform upgrades expected to accelerate sales growth, and the Co-President noting significant margin improvement for eight consecutive quarters despite intense price competition, expressing confidence in achieving both scale growth and enhanced profitability - CEO Mr. Xiaopeng He stated that upgrades to next-generation smart and electrification technology platforms will strengthen the company's technology leadership and accelerate sales growth7 - Co-President Dr. Hongdi Brian Gu highlighted that vehicle margin has improved for eight consecutive quarters, reaching a new high of 14.3% in Q2, demonstrating improving operational quality amidst industry price competition7 Recent Developments Subsequent to the quarter's end, XPENG reported strong delivery numbers for July 2025, launched its new G7 smart electric family SUV, and expanded its technical collaboration with the Volkswagen Group on Electrical/Electronic (E/E) architecture - XPENG delivered 36,717 vehicles in July 2025, bringing the year-to-date total to 233,906 vehicles as of July 31, 202514 - The G7, a smart electric family SUV, was officially launched on July 3, 2025, with deliveries starting in the same month8 - On August 15, 2025, XPENG entered into an agreement with the Volkswagen Group to expand technical collaboration on E/E Architecture9 Detailed Financial Results Analysis The company's financial performance in Q2 2025 was marked by strong revenue growth driven by higher vehicle deliveries, with profitability significantly improving due to cost reductions and a better product mix, leading to higher gross and vehicle margins, and a considerable narrowing of net loss compared to prior periods despite increased operating expenses to support future growth Revenue Analysis Total revenues for Q2 2025 reached RMB 18.27 billion, a 125.3% YoY increase, primarily driven by a 147.6% YoY surge in vehicle sales revenue to RMB 16.88 billion due to higher deliveries, while revenues from services and others grew 7.6% YoY but saw a slight 3.5% QoQ decrease due to fluctuations in technical R&D services Q2 2025 Revenue Breakdown (RMB) | Revenue Stream | Q2 2025 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Vehicle Sales | 16.88 Billion | +147.6% | +17.5% | | Services and Others | 1.39 Billion | +7.6% | -3.5% | | Total Revenues | 18.27 Billion | +125.3% | +15.6% | Profitability Analysis Gross margin improved to 17.3% in Q2 2025 from 14.0% a year ago, with vehicle margin showing a more substantial increase to 14.3% from 6.4% YoY, attributed to ongoing cost reduction efforts and an improved product mix, while services and others margin decreased quarter-over-quarter to 53.6% due to fluctuations in technical R&D services Q2 2025 Margin Performance | Margin Type | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Gross Margin | 17.3% | 14.0% | 15.6% | | Vehicle Margin | 14.3% | 6.4% | 10.5% | | Services & Others Margin | 53.6% | 54.3% | 66.4% | - The year-over-year and quarter-over-quarter increases in vehicle margin were primarily due to ongoing cost reduction and an improved product mix of models15 Operating Expenses Operating expenses increased in Q2 2025, with R&D expenses rising 50.4% YoY to RMB 2.21 billion to support new vehicle and technology development, and Selling, General, and Administrative (SG&A) expenses growing 37.7% YoY to RMB 2.17 billion, mainly due to higher sales commissions from increased sales volume - R&D expenses increased to RMB 2.21 billion (+50.4% YoY) due to higher spending on new vehicle models and technologies17 - SG&A expenses rose to RMB 2.17 billion (+37.7% YoY), primarily driven by higher commissions to franchised stores reflecting increased sales volume18 Net Loss and EPS The company significantly narrowed its net loss in Q2 2025, with GAAP net loss at RMB 0.48 billion, a substantial improvement from RMB 1.28 billion in Q2 2024, and non-GAAP net loss also improving to RMB 0.39 billion from RMB 1.22 billion in the prior-year period, consequently improving basic and diluted net loss per ADS to RMB 0.50 from RMB 1.36 year-over-year Net Loss Comparison (RMB) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Net Loss | 0.48 Billion | 1.28 Billion | 0.66 Billion | | Non-GAAP Net Loss | 0.39 Billion | 1.22 Billion | 0.43 Billion | Net Loss Per ADS (RMB) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Basic & Diluted Net Loss per ADS | 0.50 | 1.36 | 0.70 | | Non-GAAP Basic & Diluted Net Loss per ADS | 0.41 | 1.29 | 0.45 | Balance Sheet and Cash Position As of June 30, 2025, XPENG maintained a robust balance sheet with cash and cash equivalents, restricted cash, short-term investments, and time deposits totaling RMB 47.57 billion, representing an increase from RMB 45.28 billion at the end of the previous quarter - The company's total cash, cash equivalents, restricted cash, short-term investments, and time deposits amounted to RMB 47.57 billion (US$6.64 billion) as of June 30, 202528 - The cash position increased from RMB 45.28 billion as of March 31, 2025, and RMB 41.96 billion as of December 31, 202428 Business Outlook (Q3 2025 Guidance) For the third quarter of 2025, XPENG anticipates continued strong growth, projecting vehicle deliveries to be between 113,000 and 118,000 units, representing a significant year-over-year increase, with total revenues expected in the range of RMB 19.6 billion to RMB 21.0 billion Q3 2025 Guidance | Metric | Guidance Range | YoY Increase | | :--- | :--- | :--- | | Vehicle Deliveries | 113,000 - 118,000 | 142.8% - 153.6% | | Total Revenues (RMB) | 19.6B - 21.0B | 94.0% - 107.9% | Unaudited Financial Statements This section provides the detailed unaudited financial tables for the second quarter of 2025, including the Condensed Consolidated Balance Sheets, the Condensed Consolidated Statements of Comprehensive Loss, and the Reconciliations of GAAP to Non-GAAP financial measures, offering a comprehensive view of the company's financial position and performance Condensed Consolidated Balance Sheets Presents the company's assets, liabilities, and shareholders' equity as of June 30, 2025, compared to March 31, 2025, and December 31, 2024 Condensed Consolidated Statements of Comprehensive Loss Details the company's revenues, cost of sales, operating expenses, and net loss for the three months ended June 30, 2025, with comparative figures for prior periods Reconciliations of GAAP and Non-GAAP Results Provides a reconciliation of GAAP financial measures to non-GAAP measures, adjusting for items such as share-based compensation and fair value changes on derivative liability