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.
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.
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.
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, 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.
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.