On March 19, Xiaopeng Motors released its results for the three months ended December 31, 2023 and fiscal year 2023.。

In the fourth quarter of last year, Xiaopeng's total revenue was 130.500 million yuan (RMB, the same below), up 153.9%, up 53.0%。Among them, the automobile sales revenue is 122.300 million yuan, up 162.3%, up 55.9%。

In terms of earnings metrics, the net loss attributable to common shareholders of Xiaopeng Auto in the fourth quarter was 13.500 million yuan, the same month-on-month are significantly reduced.。The company's gross margin for the fourth quarter was 6.2%, compared with the previous quarter's negative 2.7% showed significant improvement。Automotive gross margin of 4.1%, negative 6 from the previous quarter.1% increased by 10 percentage points.。

As of December 31, 2023, cash and cash equivalents, restricted cash, short-term investments and term deposits were 457.0 billion, compared to 364 as of September 30, 2023..800 million yuan。

For the full year, Xiaopeng's total revenue was 306.800 million yuan, up 14.2%。Net loss attributable to common stockholders was 103.800 million yuan, expanded year-on-year。Gross margin of 1.5%, down 10 percentage points year-on-year。Of which, automotive gross margin is negative 1.6%, compared to 9 in the previous fiscal year..4%。

In terms of investment, Xiaopeng spent 52% on research and development for the whole of last year..800 million yuan, up 1.2%。The year-on-year increase is mainly related to the timing and progress of new vehicle development projects.。

It is worth mentioning that Xiaopeng's deliveries in 2023 increased quarter by quarter, and in the fourth quarter it broke through the 60,000 mark to 60,158 vehicles, up 170 from a year earlier..9%; total vehicle deliveries for the year were 141,601, up 17% from 120,757 in 2022.3%。

Gross margin turns positive, but still in single digits

In this earnings report, the outside world is still most concerned about Xiaopeng's losses and gross margin situation.。

For fiscal year 2023, Xiaopeng Auto's net loss attributable to common shareholders was 103.800 million, compared to 9.1 million in 2022.400 million yuan has expanded。Although the full-year loss was year-on-year, the good news is that in the most recent quarter, Xiaopeng's net loss recorded a narrowing。In the fourth quarter of 2023, Xiaopeng Auto's net loss attributable to common shareholders was 13.500 million, compared with 38 in the previous quarter..900 million yuan and 23 in the same period in 2022.600 million yuan are significantly reduced。

For the full year, the company's overall gross margin was 1.5%, down 10 percentage points from 2022。Of which, automotive gross margin is negative 1.6%, compared to 9 in 2022.4%。The company said that the reasons for the year-on-year decline in auto gross margin include increased sales promotion, expiration of new energy vehicle subsidies, inventory provisions and purchase commitment losses related to G3i and existing model upgrades, etc. If the third factor is excluded, its auto gross margin is positive 0.8%。

Similarly, Xiaopeng's gross margin improved in the fourth quarter of last year.。In the fourth quarter, Xiaopeng's gross profit margin was 6..2%, negative 2% from Q3 2023.7% increase。Automotive gross margin of 4.1%, compared with the previous quarter's negative 6.1% increased by 10 percentage points。The company said that the increase in automotive gross margin in the fourth quarter was mainly due to lower costs and an improved model portfolio.。

For now, Xiaopeng still hopes to expand its product portfolio to increase its automotive gross margin, which in turn will increase its overall gross margin.。

In the earnings report, Xiaopeng Automotive Chairman and CEO He Xiaopeng said: "Through the short-term challenges, Xiaopeng Automotive is about to start the next three years to launch more than 10 new models of the big product cycle."。"

In a subsequent conference call, He Xiaopeng said that from the third quarter of this year, the company's many products will be gradually listed.。"Our current plan is also 12 to 18 months earlier than before, including the price, launch time, different models, and launch location (in China or globally) and other aspects of the plan, including the management of production, supply and marketing, which we have been doing from the first half of last year to this year.。"

In addition, at the China Electric Vehicle Hundreds Forum held on March 16, He Xiaopeng said that a new brand will be launched in the next month to officially enter the 100,000-150,000 global auto market。It is generally believed that this car with a positioning of 100,000 to 150,000 yuan will be Xiaopeng's internal "Mona" project。

On the conference call, Xiaopeng also responded to "Mona," saying that the Mona sub-brand will be released soon, and Mona will also be a blockbuster product in this category.。He said, "The design of this product is very good, in terms of design and functionality, especially in terms of intelligent technology, are the best in this level of products, of course, we also have the advantage of differentiation."。We have also made great efforts to improve the cost of our products and the competitiveness of our sales channels, so we have very high expectations for this product。"

Sales or accelerate from Q2？

After the Spring Festival this year, the domestic set off another round of large-scale price war。And Xiaopeng, whose sales have fallen below 10,000 vehicles, has also been forced to get involved in this battle.。On March 3, Xiaopeng announced that the entire Xiaopeng G6 system will be reduced by 20,000 yuan before March 31, after the price reduction of 18.From 990,000 yuan。On March 5, Xiaopeng also announced the launch of limited-time spring benefits, in which Xiaopeng P7i Pengyi performance version of the price reduction of 50,000, the whole system 20.From 390,000 yuan; 2024 Xiaopeng G9 also followed the price reduction, the whole department 25.From 390,000 yuan。

During Women's Day, Xiaopeng also introduced exclusive time-limited benefits to female customers。Specifically, from March 8 to 17, if you buy any model of Xiaopeng's entire car series (excluding X9), you can enjoy a lifetime warranty for the power battery, a time-limited 50% discount on the color of the paid appearance car, and a maximum of 15,000 yuan for replacement users. Benefits such as replacement subsidies。

For the first quarter of 2024, the company expects: total revenue will be between 58.0 billion to 62.0 billion yuan, an increase of about 43.8% to 53.7 per cent; vehicle deliveries will range from 21,000 to 22,500 vehicles, an increase of about 15 per cent year-on-year..2% to 23.4%。According to the company's previously disclosed data, the total delivery volume from January to February 2024 was 12,795 vehicles.。

Previously, there was widespread speculation that Xiaopeng's full-year sales in 2024 should be in the range of 260,000 to 280,000。But the official did not disclose the target for the whole year.。In this regard, Gu Hongdi said, "We usually do not give a specific annual outlook on the number of deliveries, but what we can tell you is that, at least from our point of view, the situation this year is very optimistic."。Taking into account the product lineup and launch plans, the company will be able to achieve a much higher growth rate than the market average this year, and our market share will also increase significantly, which is our expectation.。"

Gu Hongdi further said: "Similar to last year's situation, sales in the first half of this year will be relatively weak, which is related to the industry situation, as well as our product launch plans, but due to our marketing channel adjustments, as well as the third and fourth quarters of new product launches, Xiaopeng's sales will begin to accelerate in the second quarter and the second half of the year."。"

For the Mona brand, Gu Hong said that deliveries are expected to start in the second or third quarter.。He stressed that the company does not have a specific forecast number, but he believes that in order to succeed in the A-class car market, about 10,000 vehicles per month must be delivered, and said: "We think the Mona model should be able to achieve this level of sales.。He added: "We will also be expanding in many new markets this year, and from a volume perspective, we will deliver tens of thousands of units in international markets."。"

Termination of Agreement with Taobao China

On the same day of the earnings release, Xiaopeng also issued an announcement on the termination of the relevant agreement with Taobao China and the resignation of the non-executive director.。

On June 22, 2021, Taobao China, He Xiaopeng and Xiaopeng Automobile entered into an agreement。As mentioned in the agreement, He Xiaopeng promised Taobao China that if at any time after the listing takes effect, Taobao China may nominate Alibaba candidates in accordance with the relevant rules, and He Xiaopeng will vote as a shareholder in favor of any resolution in which the Alibaba candidate is a director, subject to the relevant laws and rules.。The agreement states that this commitment will lapse if the total shareholding of all Alibaba Group affiliates in Xiaopeng Auto should be less than 5% of the total number of shares issued by the company.。

The announcement said that on March 19, 2024, based on mutual voluntary consultations, Taobao China, He Xiaopeng and Xiaopeng Automobile signed a written agreement, the three parties confirmed and agreed that the relevant agreement from March 19, 2024 all terminated and no longer have any effect.。

Separately, Xiaopeng's board of directors announced that Hu Xiao had submitted to the board of directors to resign as a non-executive director of the company, effective March 19.。Another identity of Hu Xiao is managing director of strategic investment department of Alibaba Group。

After Hu Xiao left the board, Xiaopeng Auto's board was reduced to six people, including one executive director, two non-executive directors and three independent non-executive directors.。

It is worth noting that Taobao China is the second largest shareholder of Xiaopeng Motors, after founder He Xiaopeng。

Late last year, Taobao China sold 25 million Xiaopeng American Depositary Shares (ADRs)。At the current closing price, the value of the shares sold was approximately 3.$9.1 billion (about 27.6.8 billion yuan)。At this point, the shareholding ratio has increased from 10.2% down to 7.5%, still the second largest shareholder。

This move caused Xiaopeng Automobile's share price to plummet.。At that time, there was an outside view that this was Ali's high selling cash, and the subtext was "bearish" on Xiaopeng.。Taobao China responded at the time that the company had sold some of its Xiaopeng stake in accordance with its own capital management objectives.。

Now, combined with the termination of the above agreement and the withdrawal of the directors of the Taobao department, perhaps the underlying reason is that Xiaopeng wants to get rid of the Ali department.。

Regarding the termination of the agreement and the launch of Hu Xiao, Xiaopeng Automobile said that it will continue to cooperate with Alibaba Group in various fields such as R & D and marketing services, and will explore new business cooperation opportunities in the future。

He Xiaopeng said: "On behalf of our board of directors and management team, I would like to thank Alibaba Group for its long-term support for Xiaopeng Automobile.。We look forward to continuing in-depth cooperation with Alibaba's AI technology innovation ecosystem.。"

Hu said: "Alibaba Group will continue to support the development of Xiaopeng Automotive's industry-leading smart electric vehicle technology through its world-class cloud and AI infrastructure; under Alibaba Group's artificial intelligence strategy, we look forward to continuing to empower Xiaopeng Automotive's innovation in the future."。"