U.S. Listed EV Startup XPeng Releases its 2020 Q4 Financial Report with Better Than Expected Results
【Summary】U.S. listed Chinese EV startup and Tesla challenger XPeng (NYSE: XPEV) released its Q4 financial report for the fiscal year ended December 31, 2020 on Monday, which showed rising vehicle deliveries and narrowing losses. Xpeng reported it delivered 12,964 electric vehicles in the fourth quarter of 2020, representing an increase of 302.9% from 3,218 vehicles in the corresponding period of 2019 and an increase of 51.1% from 8,578 vehicles in Q3 2020.
U.S. listed Chinese EV startup and Tesla challenger XPeng (NYSE: XPEV) released its Q4 financial report for the fiscal year ended December 31, 2020 on Monday, which showed rising vehicle deliveries and narrowing losses.
Xpeng reported it delivered 12,964 electric vehicles in the fourth quarter of 2020, representing an increase of 302.9% from 3,218 vehicles in the corresponding period of 2019 and an increase of 51.1% from 8,578 vehicles the company sold in the third quarter of last year.
Deliveries of Xpeng's P7 Smart Sedan reached 8,527 in the fourth quarter of 2020, representing an increase of 37.3% from 6,210 in the third quarter of 2020.
In total, Xpeng delivered 27,041 vehicles in 2020, representing an increase of 112.5% from 12,728 for the prior year. Deliveries of the P7 reached 15,062 in fiscal year 2020. The rest were sales of Xpeng's G3 SUV, the company's first vehicle.
The rising sales numbers indicate Xpeng's growing presence in China, which is the world's biggest auto market. The company is a strong challenger to Tesla in its home country, as well for its domestic rival NIO Inc.
Xpeng's total revenue for Q4 2020 was RMB2,851.4 million (US$437.0 million), 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 Q3 2020.
Total revenues for fiscal year 2020 were RMB5,844.3 million (US$895.7 million), representing an increase of 151.8% from the prior year.
Xpeng's 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 (US$565.7 million) for the prior year.
Revenues from Xpeng's electric 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 RMB1,898million for the third quarter of 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.
Xpeng's 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 Q4 2020, compared to 3.2% for the third quarter of 2020. Xpeng attributed the improved margins to having a better product mix, decreased material costs and increased manufacturing efficiency.
Net loss for the final quarter of 2020 was RMB787.4 million (US$120.7 million), compared with RMB997.1 million for the same period of 2019 and RMB1,148.8 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. Each ADS represents two Class A ordinary shares.
In December 2020, XPeng completed the offering of 55,200,000 ADSs at an offering price of US$45.00 apiece. 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.
Xpeng said its cash and cash equivalents, restricted cash, short-term deposits and short-term investments were RMB35,342.1 million (US$5.4 billion) as of December 31, 2020.
In January, Xpeng entered into a strategic agreement with leading domestic banks and secured a credit line of RMB12.8 billion (US$1.98 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, the company said.
"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.
As of December 31, 2020, XPeng's physical sales and service network consisted of a total of 160 stores and 54 service centers, covering 69 cities. Xpeng-branded super charging stations expanded to 159, covering 54 cities in China.
XPeng is also off to a strong start in 2021 as China auto industry recovered from the global pandemic that caused a decline in sales throughout 2020. For the first quarter of 2021, Xpeng expects its vehicle deliveries will be approximately 12,500 vehicles, representing a year-over-year increase of approximately 450%.
Total vehicle deliveries reached a record 6,015 units in January 2021, representing a 470% increase year-over-year. The delivery totals consisted of 3,710 units of Xpeng's P7 sedan and 2,305 G3 SUVs.
Total deliveries reached 2,223 units last month, representing a 1,281% increase year-over-year. Xpeng's February deliveries consisted of 1,409 P7s, XPeng's smart sports sedan, and 814 G3s.
Xpeng plans to launch its third Smart EV model in the second half of 2021. By 2024, the company aims to have seven or eight electric vehicles in its model lineup.
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