By XPeng reported its second-quarter results on Friday, revealing a wider net loss and a decrease in revenue. Here’s what you need to know.
Net Loss
XPeng stated that its net loss for the second quarter widened to 2.80 billion yuan ($384.5 million), compared to 2.70 billion yuan in the same period last year. This result was worse than the estimated net loss of 2.31 billion yuan from a poll of analysts conducted by FactSet.
Revenue Decline
The company also announced that its revenue fell by 32% to 5.06 billion yuan. This missed the estimated revenue of 5.17 billion yuan according to the FactSet poll.
Key Highlights
Research and Development (R&D)
XPeng’s research and development expenses increased by 8.1% to 1.37 billion yuan. This rise in expenses was mainly attributed to the development of new models as the company expands its product portfolio.
Selling Expenses
Selling, general, and administrative expenses decreased by 7.3% to 1.54 billion yuan. This reduction was due to a decrease in commission paid to franchised stores, as well as lower marketing and advertising expenses.
Outlook
For the third quarter, XPeng projects that deliveries will see an increase of about 32%-39% to 39,000-41,000 units. Additionally, the company expects revenue to rise by approximately 25%-32% to 8.5 billion yuan-9.0 billion yuan.
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