Core Viewpoint - Xiaopeng Motors aims to achieve its first quarterly profit in Q4 of this year, supported by strong performance in Q2, with significant reductions in operating and net losses [4][11]. Financial Performance - In Q2, Xiaopeng reported an operating loss of 930 million yuan, a year-on-year decrease of 41.9%, and a net loss of 480 million yuan, down 62.8%, marking the best performance since its IPO [4]. - Total gross profit for the quarter reached 3.17 billion yuan, a year-on-year increase of 1.8 times, with the automotive business contributing 2.42 billion yuan, up 4.6 times [4][5]. - The sales and management expense ratio improved to 11.9%, a decrease of 7.5 percentage points year-on-year [4]. Sales and Production - Xiaopeng's monthly sales are expected to stabilize above 40,000 units starting in September, driven by the launch of new models [3][5]. - The average selling price per vehicle decreased to 153,000 yuan in Q1 due to the introduction of lower-priced models, but rebounded to 164,000 yuan in Q2 as sales of these models declined [5]. Cash Flow and Financial Health - Xiaopeng achieved a free cash flow of over 2 billion yuan in Q2, with cash reserves increasing by 2.29 billion yuan to a historical high of 47.57 billion yuan [10]. - The company has delivered over 30,000 units for eight consecutive months, improving its cash flow situation [10]. Future Outlook - For Q3, Xiaopeng anticipates new vehicle deliveries between 113,000 and 118,000 units, representing a year-on-year growth of 142.8% to 153.6%, with total revenue projected between 19.6 billion and 21 billion yuan, up 94% to 107.9% [11]. - The introduction of the extended-range version of the X9 and advancements in AI-assisted driving technology are expected to enhance gross and net margins [11]. - Xiaopeng's collaboration with Volkswagen is seen as a strategic move to dilute initial high costs and improve overall performance [11]. Strategic Focus - The company is shifting its focus from merely pursuing high-profile models to strengthening its foundational capabilities in product quality, management, sales, and supply chain [12].