Xiaopeng Motors (09868.HK) released its financial report for the first quarter of 2022. The company's quarterly total revenue was 7.455 billion yuan (RMB, the same below), a year-on- year increase of 152.6% and a month-on-month decrease of 12.9%. Among them, automobile sales revenue was 6.999 billion yuan, a year-on-year increase of 149% and a month-on-month decrease of 14.5%.

Xpeng Motors stated that the year-on-year increase in revenue was mainly due to the increase in vehicle deliveries (especially P7 and P5), while the quarter-on-quarter decrease was due to the decrease in vehicle deliveries due to seasonal factors related to the Spring Festival.

The company's service and other income was 460 million yuan, a year-on-year increase of 224.5% and a month-on -month increase of 23.7%. The year-over-year and quarter-over-quarter increases were primarily attributable to the increase in revenue from service, parts and accessories sales as cumulative vehicle sales increased.

In addition, the company's cost of sales was 6.544 billion yuan, a year-on-year increase of 149.7% and a month-on-month decrease of 13.1%. The reason for the change was related to the number of vehicles delivered.

In the first quarter of 2022, Xiaopeng Motors' gross profit margin was 12.2%, which remained stable, 11.2% in the first quarter of 2021 and 12% in the fourth quarter of 2021; the auto profit margin was 10.4%, compared with 2021 It was 10.1% year-on-year and 10.9% in the fourth quarter of 2021. The quarter-to-quarter decrease was mainly due to rising raw material costs.

During the period, the company's net loss was 1.701 billion yuan, compared with 787 million yuan in the same period of 2021 and 1.287 billion yuan in the fourth quarter of 2021; the net loss attributable to ordinary shareholders was 1.701 billion yuan; non-GAAP Xpeng Motors ordinary shares The net loss attributable to shareholders was 1.528 billion yuan.

The financial report shows that Xiaopeng Motors’ R&D investment continues to increase. In the first quarter of 2022, Xiaopeng Motors' R&D expenditure was 1.221 billion yuan, a year-on-year increase of 128.2% and a month-on-month decrease of 15.9%.

Xpeng Motors stated that the year-on-year increase in R&D investment was mainly due to the increase in employee compensation due to the increase in R&D personnel, as well as the increase in expenses such as developing new models. The quarter-over-quarter decrease was mainly due to a decrease in design and development expenses due to seasonal factors related to the Spring Festival.

As of March 31, 2022, the company had cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits of 41.714 billion yuan ($6.580 billion), compared to 41.714 billion yuan as of December 31, 2021 43.544 billion yuan.

In terms of delivery volume, from January to March 2022, the total delivery volume of Xiaopeng Motors was 34,561 units, a year-on-year increase of 159%, and the delivery volume of the intelligent sports sedan P7 was 19,427 units, a year-on-year increase of 144%. The monthly delivery of the smart sports car P7 exceeded 9,000 units for the first time in March 2022; the delivery of the smart family car P5 reached 10,486 units in the first quarter of 2022, of which more than 50% can support XPILOT3.0 or XPILOT3.5 .

He Xiaopeng, chairman and CEO of Xiaopeng Motors, revealed in the earnings conference call that the company delivered 15,000 units under the epidemic in March this year, new orders in March hit a record high, and the scale of orders in hand reached a record high. In order to cover the rising cost of batteries and raw materials, starting from March 21, Xiaopeng Motors has raised the price of all products by 10,000-20,000 yuan. However, the market demand after the price increase still shows strong resilience. He Xiaopeng said that if some areas affected by the epidemic are excluded, the order volume in May has returned to a level comparable to that before the price increase.

According to the financial report, in April 2022, Xiaopeng delivered a total of 9,002 vehicles, an increase of 75% year-on-year. Deliveries included 3,714 P7 (smart sports sedan), 3,564 P5 (smart family sedan) and 1,724 G3 and G3 (compact smart iSUVs). As of April 30, 2022, the cumulative total deliveries for the year reached 43,563 units, a year-on-year increase of 136%.

Looking forward to the second quarter of 2022, Xpeng Motors expects vehicle deliveries to be 31,000-34,000 units, a year-on-year increase of about 78.2%-95.4%; total revenue is 6.8 billion-7.5 billion yuan, a year-on-year increase of about 80.8%-99.4%.

At the Xpeng Motors 2022 Q1 earnings conference call, it was officially announced that the Xpeng G9 will be launched in the third quarter of this year and will be delivered on a large scale in the fourth quarter. In addition, He Xiaopeng, chairman of Xiaopeng Motors, said: "It is planned to launch a new car on the newly built B-segment vehicle platform and C-segment vehicle platform in 2023, and the two new vehicles will achieve a number of world's first technological innovations. And become the "face value responsible for the same level of models. A variety of mass-produced models will fully cover the product matrix in the price range of 150,000-400,000 yuan.