GUANGZHOU, China – XPeng Inc., a leading Chinese smart electric vehicle (“Smart EV”) company, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020.
Fourth Quarter 2020 Operational and Financial Highlights
- Deliveries of vehicles reached 12,964 in the fourth quarter of 2020, representing an increase of 302.9% from 3,218 in the corresponding period of 2019 and an increase of 51.1% from 8,578 in the third quarter of 2020.
- Deliveries of the P71 reached 8,527 in the fourth quarter of 2020, representing an increase of 37.3% from 6,210 in the third quarter of 2020.
- Among the total P7s delivered for the quarter, 95% can support XPILOT 2.5 or XPILOT 3.0.
- As ofDecember 31, 2020,XPeng’s physical sales and service network consisted of atotal of 160 stores and 54 service centers, covering 69 cities.
- As of December 31, 2020, Xpeng-branded super charging stations expanded to 159, covering 54 cities.
- Total revenues were RMB2,851.4 million (US$437.0 million) for the fourth quarter of 2020, representing an increase of 345.5% from RMB640.0 million for the same period of 2019 and an increase of 43.3% from RMB1,990.1 million for the third quarter of 2020.
- Revenues from vehicle sales were RMB2,735.4 million (US$419.2 million) for the fourth quarter of 2020, representing an increase of 375.7% from RMB575.0 million for the same period of 2019, and an increase of 44.1% from RMB1,898.0 million for the third quarter of 2020.
- Gross margin was 7.4% for the fourth quarter of 2020, compared with negative 6.6% for the same period of 2019 and 4.6% for the third quarter of 2020.
- Vehicle margin, which is gross profit of vehicle sales as a percentage of revenues from vehicle sales, was 6.8% for the fourth quarter of 2020, compared to negative 8.5% for the same period of 2019 and 3.2% for the third quarter of 2020.
- Net loss was RMB787.4 million (US$120.7 million) for the fourth quarter of 2020, compared with RMB997.1 million for the same period of 2019 and RMB1,148.8 million for the third quarter of 2020. Excluding share-based compensation expenses and fair value change on derivative liabilities related to the redemption right of preferred shares, non-GAAP net loss was RMB712.6 million (US$109.2 million) in the fourth quarter of 2020, compared with RMB1,097.1 million for the same period of 2019 and RMB864.9 million for the third quarter of 2020.
- Net loss attributable to ordinary shareholders of XPeng Inc. was RMB787.4 million (US$120.7 million) for the fourth quarter of 2020, compared with RMB1,354.6 million for the same period of 2019 and RMB2,025.8 million in the third quarter of 2020. Excluding share-based compensation expenses, fair value change on derivative liabilities related to the redemption right of preferred shares and accretion on preferred shares to redemption value, non-GAAP net loss attributable to ordinary shareholders of XPeng Inc. was RMB712.6 million (US$109.2 million) for the fourth quarter of 2020, compared with RMB1,097.1 million for the same period of 2019 and RMB864.9 million for the third quarter of 2020.
- Basic and diluted net loss per American depositary share (ADS)were both RMB1.05 (US$0.16) for the fourth quarter of 2020. Non-GAAP basic and diluted net loss per ADS were both RMB0.95 (US$0.15) for the fourth quarter of 2020. Each ADS represents two Class A ordinary shares.
- Cash and cash equivalents, restricted cash, short-term deposits and short-term investments were RMB35,342.1 million (US$5,416.4 million) as of December 31, 2020.
Fiscal Year 2020 Operational and Financial Highlights
- Deliveries of vehicles reached 27,041 in fiscal year 2020, representing an increase of 112.5% from 12,728 for the prior year.
- Deliveries of the P71 reached 15,062 in fiscal year 2020.
- Total revenues were RMB5,844.3 million (US$895.7 million) for fiscal year 2020, representing an increase of 151.8% from RMB2,321.2 million for the prior year.
- Revenues from vehicle sales were RMB5,546.8 million (US$850.1 million) for fiscal year 2020, representing an increase of 155.5% from RMB2,171.2 million for the prior year.
- Gross margin was 4.6% for fiscal year 2020, compared with negative 24.0% for the prior year.
- Vehicle margin, which is gross profit of vehicle sales as a percentage of revenues from vehicle sales, was 3.5% for fiscal year 2020, compared to negative 25.9% for the prior year.
- Net loss was RMB2,732.0 million (US$418.7 million) for fiscal year 2020, compared with RMB3,691.7 million for the prior year. Excluding share-based compensation expenses and fair value change on derivative liabilities related to the redemption right of preferred shares, non-GAAP net loss was RMB2,991.8 million (US$458.5 million) for fiscal year 2020, compared with RMB3,718.8 million for the prior year.
- Net loss attributable to ordinary shareholders of XPeng Inc. was RMB4,889.7 million (US$749.4 million) for fiscal year 2020, compared with RMB4,642.8 million for the prior year. Excluding share-based compensation expenses, fair value change on derivative liabilities related to the redemption right of preferred shares and accretion on preferred shares to redemption value, non-GAAP net loss attributable to ordinary shareholders of XPeng Inc. was RMB2,991.8 million (US$458.5 million) for fiscal year 2020, compared with RMB3,708.9 million for the prior year.
- Basic and diluted net loss per ADS were both RMB12.97 (US$1.99) for fiscal year 2020. Non-GAAP basic and diluted net loss per ADS were both RMB7.93 (US$1.22) for fiscal year 2020.
“We closed 2020 on a strong note, with a record number of total deliveries in the fourth quarter of 12,964 vehicles, led by the P7, our second Smart EV model, which fueled our robust operational and financial performance throughout the year,” said Mr. He Xiaopeng, Chairman and CEO of XPeng. “Our relentless focus on providing highly differentiated Smart EV products to our customers and expanding our sales and service network supported our achievements in 2020 and empowers our sustainable future growth.
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“We spearhead innovation in China’s Smart EV market by pursuing end-to-end R&D and closed-loop of data capabilities. We proudly offer our customers a revolutionary in-car voice system and smart cockpit technology, as well as XPILOT 3.0, our self-developed full-stack autonomous driving system, and we are poised to launch our LIDAR-equipped third Smart EV model in the second half of 2021.
“We remain committed to our mission to drive Smart EV transformation with technology and data, shaping the mobility experience of future. As part of our long-term strategy, we are pursuing a suite of cutting-edge Smart EV technologies and products, including the next-generation autonomous driving system and powertrain platform that will be applied to our future smart models,” Mr. He concluded.
“XPeng’s solid results in the fourth quarter and throughout fiscal 2020 exemplify our ability to successfully meet fast-growing market demand for a smart mobility experience,” Dr. Brian Gu, Vice Chairman and President of XPeng said, “Driven by strong growth of vehicle deliveries, our revenue increased 345.5% in the fourth quarter and 151.8% for the full year, both on a year-over-year basis.
“Our profitability continued to improve, thanks to rapid sales growth following the beginning of mass deliveries of P7. Specifically, our gross margin improved sequentially in the fourth quarter, and for the first time, we achieved positive full-year gross margin, marking a significant milestone in our company history, reflecting the power of our business model. Moreover, our strong cash position provides us with a solid financial foundation, which we believe will support execution of our growth strategies, strengthen our competitive edge and enable us to capture immense market opportunities for future growth,” Mr. Gu concluded.
Recent Developments
Deliveries in January and February 2021
- Total Smart EV deliveries reached 6,015 units in January 2021, representing a 470% increase year-over-year. The deliveries consisted of 3,710 P7s, XPeng’s smart sports sedan, and 2,305 G3s, XPeng’s compact smart SUV.
- Total Smart EV deliveries reached 2,223 units in February 2021, representing a 1,281% increase year-over-year. The deliveries consisted of 1,409 P7s, XPeng’s smart sports sedan, and 814 G3s, XPeng’s compact smart SUV. As of February 28, 2020, a cumulative total of 20,181 P7s were delivered.
Completion of Follow-On Public Offering of American Depositary Shares
In December 2020, XPeng completed the offering of 55,200,000 American depositary shares (“ADSs”), each representing two Class A ordinary shares of the Company, at a public offering price of US$45.00 per ADS. The number of ADSs issued at closing included the exercise in full of the underwriters’ option to purchase 7,200,000 additional ADSs from the Company.
Entering into a Strategic Cooperation Agreement with Banks for RMB12.8 Billion Credit Facilities
In January 2021, XPeng entered into a strategic cooperation agreement with a handful of leading domestic banks to secure a credit line of RMB12.8 billion with multiple credit facilities. These credit facilities will support the Company’s business operation and expansion in its manufacturing, sales and service capabilities, while optimizing efficiency.
OTA Release of New Xmart OS 2.5.0 and XPilot 3.0
On January 26, 2021, XPeng introduced a significant over-the-air (OTA) update for the P7, releasing a new version of P7’s operating system, Xmart OS 2.5.0. The brand-new in-car operating system features more than 40 new functions, along with improvements and optimization of a large number of existing features. The new functions cover multiple modules, including autonomous driving assistance, voice assistance, smart cockpit, in-car App offerings and personalized settings. In particular, this OTA update features XPeng’s navigation assisted highway autonomous driving solution NGP (Navigation Guided Pilot), which constitutes core capabilities of XPILOT 3.0.
Fourth Quarter 2020 Unaudited Financial Results
Total revenues were RMB2,851.4 million (US$437.0 million) for the fourth quarter of 2020, representing an increase of 345.5% from RMB640.0 million for the same period of 2019 and an increase of 43.3% from RMB1,990.1 million for the third quarter of 2020.
Revenues from vehicle sales were RMB2,735.4 million (US$419.2 million) for the fourth quarter of 2020, representing an increase of 375.7% from RMB575.0 million for the same period of 2019 and an increase of 44.1% from RMB1,898.0 million for the third quarter of 2020. The year-over-year increase was mainly due to mass delivery of the P7, which started at the end of June 2020. The quarter-over-quarter increase was primarily due to accelerated vehicle deliveries of the P7 and the G3 in the fourth quarter of 2020.
Revenues from services and others were RMB116.0 million (US$17.8 million) for the fourth quarter of 2020, representing an increase of 78.5% from RMB65.0 million for the same period of 2019 and an increase of 26.0% from RMB92.1 million for the third quarter of 2020. The year-over-year and the quarter-over-quarter increases were mainly attributed to increased revenue from after-sales services and the increase in sale of retail merchandising services, which both were associated with the increase in the accumulated number of vehicles delivered.
Cost of sales was RMB2,640.8 million (US$404.7 million) for the fourth quarter of 2020, representing an increase of 287.2% from RMB682.1 million for the same period of 2019, and an increase of 39.1% from RMB1,898.6 million for the third quarter of 2020. The year-over-year and the quarter-over-quarter increases were mainly due to the increase of vehicle deliveries as described above.
Gross margin was 7.4% for the fourth quarter of 2020, compared to negative 6.6% and 4.6% for the fourth quarter of 2019 and the third quarter of 2020, respectively.
Vehicle margin was 6.8% for the fourth quarter of 2020, compared to negative 8.5% for the same period of 2019 and 3.2% for the third quarter of 2020. The improvement was primarily due to better product mix, decreased material costs and increased manufacturing efficiency.
Research and development expenseswere RMB460.0 million (US$70.5 million) for the fourth quarter of 2020, representing a decrease of 29.4% from RMB652.0 million for the same period of 2019 and a decrease of 27.6% from RMB635.4 million for the third quarter of 2020. The year-over-year decrease was mainly due to higher expenses relating to the development of the P7 in the same period of 2019. The quarter-over-quarter decrease was mainly due to reduced share-based compensation expenses in the fourth quarter compared to a one-off large amount recognized in the third quarter related to the share-based awards granted to the Company’s employees with a performance condition of an IPO.
Selling, general and administrative expenses were RMB917.9 million (US$140.7 million) for the fourth quarter of 2020, representing an increase of 132.7% from RMB394.5 million for the same period of 2019 and a decrease of 23.7% from RMB1,203.8 million for the third quarter of 2020. The year-over-year increase was mainly due to (i) higher marketing, promotional and advertising expenses to support vehicle sales, (ii) the expansion of our sales network and associated personnel cost for sales staff, lease expenses for physical sales and service centers, and commission for the franchised stores. The quarter-over-quarter decrease was mainly due to reduced amount of share-based compensation expenses compared with the one-off large amount recognized in the previous quarter related to the share-based awards aforementioned, offset by increases in marketing, promotional and advertising expenses, personnel cost, lease expenses and commission as mentioned above. Excluding the share-based compensation expenses, the year-over-year and the quarter-over-quarter increases mainly resulted from the higher marketing, promotional and advertising expenses to support new vehicle sales, the expansion of our sales network and associated personnel cost for sales staff, and increased commission to the franchised stores.
Loss from operations was RMB1,121.2 million (US$171.8 million) for the fourth quarter of 2020, compared with RMB1,086.1 million for the same period of 2019 and RMB1,744.2 million for the third quarter of 2020.
Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB1,046.4 million (US$160.4 million) in the fourth quarter, compared with RMB1,086.0 million for the same period of 2019 and RMB822.6 million for the third quarter of 2020.
Net loss was RMB787.4 million (US$120.7 million) for the fourth quarter of 2020, compared with RMB997.1 million for the same period of 2019 and RMB1,148.8 million for the third quarter of 2020.
Non-GAAP net loss, which excludes share-based compensation expenses and fair value change on derivative liabilities related to the redemption right of preferred shares, was RMB712.6 million (US$109.2 million) for the fourth quarter of 2020, compared with RMB1,097.1 million for the same period of 2019 and RMB864.9 million for the third quarter of 2020.
Net loss attributable to ordinary shareholders of XPeng Inc. was RMB787.4 million (US$120.7 million) for the fourth quarter of 2020, compared with RMB1,354.6 million for the same period of 2019 and RMB2,025.8 million in the third quarter of 2020.
Non-GAAP net loss attributable to ordinary shareholders of XPeng Inc., which excludes share-based compensation expenses, fair value change on derivative liabilities related to the redemption right of preferred shares and accretion on preferred shares to redemption value, was RMB712.6 million (US$109.2 million) for the fourth quarter of 2020, compared with RMB1,097.1 million for the same period of 2019 and RMB864.9 million for the third quarter of 2020.
Basic and diluted net loss per ADSwere both RMB1.05 (US$0.16) for the fourth quarter of 2020, compared to RMB7.75 for the fourth quarter of 2019 and RMB5.07 for the third quarter of 2020.
Non-GAAP basic and diluted net loss per ADSwere both RMB0.95 (US$0.15) for the fourth quarter of 2020, compared to RMB6.28 for the fourth quarter of 2019 and RMB2.16 for the third quarter of 2020.
Balance Sheets
As of December 31, 2020, the Company had cash and cash equivalents, restricted cash, short-term deposits and short-term investments of RMB35,342.1 million (US$5,416.4 million), compared to RMB2,815.6 million as of December 31, 2019.
Fiscal Year 2020 Unaudited Financial Results
Total revenues were RMB5,844.3 million (US$895.7 million) for the fiscal year of 2020, representing an increase of 151.8% from RMB2,321.2 million for the prior year.
Revenues from vehicle sales were RMB5,546.8 million (US$850.1 million) for fiscal year 2020, representing an increase of 155.5% from RMB2,171.2 million for the prior year. The increase was mainly due to higher sales and better product mix as a result of mass delivery of the P7 in the second quarter of 2020.
Revenues from services and others were RMB297.5 million (US$45.6 million) for fiscal year 2020, representing an increase of 98.3% from RMB150.0 million for the prior year. The increase was mainly attributed to increased revenue from after-sales services and sale of retail merchandise which were associated with the increase in accumulated number of vehicles delivered.
Cost of sales was RMB5,578.3 million (US$854.9 million) for fiscal year 2020, representing an increase of 93.7% from RMB2,879.4 million for the prior year. The increase was mainly due to the increase of vehicle deliveries as described above.
Gross margin was 4.6% for fiscal year 2020, compared to negative 24.0% for the prior year.
Vehicle margin was 3.5% for fiscal year 2020, compared to negative 25.9% for the prior year, primarily due to better product mix, decreased material costs and improved manufacturing efficiency.
Research and development expenseswere RMB1,725.9 million (US$264.5 million) for fiscal year 2020, representing a decrease of 16.6% from RMB2,070.2 million for the prior year. The decrease was mainly due to higher expenses relating to the development of the P7 in 2019.
Selling, general and administrative expenses were RMB2,920.6 million (US$447.6 million) for fiscal year 2020, representing an increase of 150.8% from RMB1,164.6 million for the prior year. The increase was mainly due to (i) higher marketing, promotional and advertising expenses to support vehicle sales, (ii) the expansion of our sales network and associated personnel cost for sales staff, lease expenses for the physical sales and service centers, and commission to the franchised stores, and (iii) share-based compensation expenses recognized from the share-based awards granted to the Company’s employees in 2020, including a one-off large amount recognized in the third quarter related to the share-based awards granted to the Company’s employees with a performance condition of an IPO.
Loss from operations was RMB4,293.7 million (US$658.0 million) for fiscal year 2020, compared with RMB3,780.6 million for the prior year.
Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB3,297.3 million (US$505.3 million) for fiscal year 2020, compared with RMB3,780.1 million for the prior year.
Net loss was RMB2,732.0 million (US$418.7 million) for fiscal year 2020, compared with RMB3,691.7 million for the prior year.
Non-GAAP net loss, which excludes share-based compensation expenses and fair value change on derivative liabilities related to the redemption right of preferred shares, was RMB2,991.8 million (US$458.5 million) for fiscal year 2020, compared with RMB3,718.8 million for the prior year.
Net loss attributable to ordinary shareholders of XPeng Inc. was RMB4,889.7 million (US$749.4 million) for fiscal year 2020, compared with RMB4,642.8 million for the prior year.
Non-GAAP net loss attributable to ordinary shareholders of XPeng Inc., which excludes share-based compensation expenses, fair value change on derivative liabilities related to the redemption right of preferred shares and accretion on preferred shares to redemption value, was RMB2,991.8 million (US$458.5 million) for fiscal year 2020, compared with RMB3,708.9 million for the prior year.
Basic and diluted net loss per ADSwere both RMB12.97 (US$1.99) for fiscal year 2020, compared to RMB26.57 for the prior year.
Non-GAAP basic and diluted net loss per ADSwere both RMB7.93 (US$1.22) for fiscal year 2020, compared to RMB21.23 for the prior year.
Business Outlook
For the first quarter of 2021, the Company expects:
- Deliveries of vehicles to be approximately 12,500 vehicles, representing a year-over-year increase of approximately 450%.
- Total revenues to be approximately RMB2.6 billion, representing a year-over-year increase of approximately 531%.
The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, and customer demand, which are all subject to change.
