XPENG Reports Third Quarter 2024 Unaudited Financial Results

Financial Performance - Quarterly total revenues reached RMB10.10 billion, a 24.5% increase quarter-over-quarter [1] - Gross margin was 15.3%, a historical high and an 18.0 percentage point increase year-over-year [1] - Vehicle sales revenue was RMB8.80 billion, up 12.1% year-over-year and 29.0% quarter-over-quarter [4] - Net loss was RMB1.81 billion, a 53.5% decrease year-over-year [6] - Non-GAAP net loss was RMB1.53 billion, a 45.1% decrease year-over-year [6] Operational Highlights - Total vehicle deliveries were 46,533 in Q3 2024, a 16.3% increase year-over-year [2] - The company had 639 physical sales stores across 206 cities as of September 30, 2024 [2] - Self-operated charging stations reached 1,557, including 654 XPENG S4 ultra-fast charging stations [3] Recent Developments - Total deliveries in October 2024 were 23,917 vehicles [13] - Year-to-date deliveries as of October 31, 2024, were 122,478 vehicles [14] - The company launched the P7+ AI-defined smart electric fastback sedan in November 2024 [16] Management Commentary - The company highlighted significant transformation in core competencies and execution capabilities [12] - Management emphasized the importance of AI in the next decade and the company's focus on becoming a global AI auto company [12] - Technology-driven cost reductions and volume growth contributed to the historical high gross margin [12] Business Outlook - The company expects Q4 2024 vehicle deliveries to be between 87,000 and 91,000, a 44.6% to 51.3% increase year-over-year [36] - Total revenues for Q4 2024 are projected to be between RMB15.3 billion and RMB16.2 billion, a 17.2% to 24.1% increase year-over-year [36] ESG Performance - The company received the highest "AAA" ESG rating from MSCI for the second consecutive year [17] - XPENG was named the "Industry Mover" by S&P Global for two consecutive years, the only company in China's automotive manufacturing industry to achieve this [17] Financial Position - Cash and cash equivalents, restricted cash, short-term investments, and time deposits totaled RMB35.75 billion as of September 30, 2024 [10] - The company's total assets were RMB76.43 billion as of September 30, 2024 [47]