Core Viewpoint - NIO's Q1 financial report shows a year-on-year revenue growth of 21.5%, reaching RMB 120.3 billion, but the net loss increased by 30.2% to RMB 67.5 billion, indicating ongoing challenges in achieving profitability [5][6]. Company Performance - Li Auto reported the highest revenue among new energy vehicle companies at RMB 25.9 billion, while Leap Motor achieved record revenue and gross margin, exceeding RMB 10 billion with a gross margin of 14.9% [1]. - Xpeng Motors improved its gross margin to 15.6%, with a revenue of RMB 15.8 billion, marking a 141.5% year-on-year increase [9]. - NIO's gross margin was 7.6%, up 2.7 percentage points year-on-year, but still reflects a struggle to reach profitability [5][6]. Sales and Deliveries - In May, several new energy vehicle companies reported strong delivery numbers, with Li Auto delivering 40,856 vehicles, a 16.7% increase year-on-year, and NIO delivering 23,231 vehicles, a 13.1% increase [11][16]. - Xpeng Motors delivered 33,525 vehicles in May, a 230% year-on-year increase, while Leap Motor and Zeekr also reported deliveries exceeding 40,000 units [11][12]. Future Outlook - NIO aims to achieve profitability by Q4 2024, with expectations of monthly sales of 50,000 units across its brands and a gross margin exceeding 20% [5][8]. - Xpeng Motors is also targeting profitability in Q4 2024, with a projected revenue of RMB 175 billion to RMB 187 billion for Q2 2024, reflecting a significant year-on-year growth [9]. - The overall industry is expected to transition from a model of increasing revenue without profit to a more sustainable growth phase, driven by competitive pressures and market dynamics [4].

| | | For the Three M | | --- | --- | --- | | | March 31, | Decembe | | | 2024 | 2024 | | | RMB | RMB | | Vehicle sales | 24,251.6 | 42, | | Vehicle margin | 19.3% | 1 | | Total revenues | 25,633.7 | 44.: | | Gross profit | 5,284.3 | 8,1 | | Gross margin | 20.6% | 2 | | Operating expenses | (5,869.2) | (5,2 | | (Loss)/Income from operations | (584.9) | 3,1 | | Operating margin | (2.3)% | | | Net income | 591.1 | 3,: | | Non-GAAP net income | 1,276.4 | 4.1 | | Diluted net earnings per ADS attributable to | | ...

Group 1 - The Hong Kong stock market opened lower on May 22, with the Hang Seng Index down 0.33% at 23,748.58 points, the Hang Seng Tech Index down 0.11%, and the National Enterprises Index down 0.23% [1] - Technology stocks in Hong Kong experienced a general decline, while gold stocks rose collectively. Automotive stocks were active, with XPeng Motors surging after its earnings report [1] - XPeng Motors reported Q1 2025 revenue of 15.81 billion yuan, a year-on-year increase of 141.5%. The total delivery volume reached 94,000 units, marking a historical high for quarterly deliveries with a year-on-year growth of 330.8% [1] Group 2 - XPeng Motors achieved a gross margin of 15.6%, an increase of 2.7 percentage points year-on-year, setting a new record for quarterly gross margin. The automotive gross margin reached 10.5%, up 5 percentage points year-on-year, marking seven consecutive quarters of growth [1] - Huatai Securities noted that since the launch of the MONAM03, the company's sales trend has been consistently positive, with April deliveries reaching 35,000 units, surpassing 30,000 units for six consecutive months [1] - The company plans to launch three new models from May to August: M03MAX, P7 facelift, and G7, which are expected to replicate the success of the M03 and P7 models, potentially driving monthly sales to exceed 40,000 units in July and August [1] Group 3 - The Hong Kong Stock Connect Automotive ETF (159323) focuses on the Hong Kong vehicle sector, featuring a high concentration of passenger vehicles and including emerging automakers like XPeng Motors, BYD, Li Auto, and Geely [2] - The ETF also covers the automotive parts sector and the automotive intelligence field, positioning it to benefit significantly from the robotics technology wave [2]