Q3 financial release income increase, Xiaopeng Automobile future development will strengthen the user orientation
Recently, Xiaopeng Automobile released the third quarter financial report, revenue growth of 19.3% year on year. Cumulative deliveries in the first three quarters of this year were 98,553 units, up 75% year-on-year. The good news sent shares of Xiaopeng Motor up 47% in the U.S. and more than 30% in Hong Kong. The good performance and the recognition of the capital market cannot be separated from the firm determination and decisive action of Xiaopeng Automobile reform. After the organizational structure adjustment of the brand and marketing team and a series of reforms, the proportion of "service" and "business" of Xiaopeng Automobile has increased, and the direction of focusing on customers has become more clear. In the future, Xiaopeng will pay more attention to the long term rather than the short term, with more aggressive movements and clearer positioning, and will accelerate the development of smart cars on long slopes and thick snow tracks.
Financial report released, the market is optimistic about Xiaopeng Automobile
On November 30, 2022, Xiaopeng Automobile released Q3 financial report with good performance. Total revenue for the third quarter was 6.82 billion yuan ($960 million), an increase of 19.3% from the same period in 2021, including 6.24 billion yuan ($880 million) from auto sales, an increase of 14.3% from the same period in 2021. Gross margin for the third quarter was 13.5%, up 2.6% from the same period last year. Net loss for the third quarter was 2.38 billion yuan (330 million yuan), compared with 2.70 billion yuan in the second quarter of 2022, narrowing by 12.0% quarter-on-quarter.
In addition, total vehicle deliveries in the third quarter were 29,570 units, up 15 percent from 2,566 units in the same period in 2021, with further expansion of the sales network and self-owned charging station network. As can be seen from the financial report data, although Xiaopeng still has room for improvement in profit and delivery, there is no short-term survival pressure. How to reduce cost, improve efficiency and ensure product competitiveness is the core task of enterprises.
Xiaopeng Motor's recovery this season cannot be separated from the firm confidence of its founder. In September this year, He Xiaopeng, the chairman and CEO of Xiaopeng Motor, invested more than 200 million yuan to increase his holdings of Xiaopeng Motor's American stock, with a stake of about 20.5% after the increase, which shows that the founder He Xiaopeng is full of confidence in the prospects and growth potential of Xiaopeng Motor and his long-term commitment to the company. Buoyed by the news, Xiaopeng Auto's share price rose in the secondary market and investor confidence rebounded.
In addition to the stake increase, He also personally serves as the director of the product and strategy committee, focusing on the strategy, product planning and research and development of Xiaopeng Motor, with greater control over product decisions. "Our management team recently conducted an in-depth review of our growth strategy, products and operations. We have implemented organizational restructuring and some strategic adjustments. I am confident of creating competitive products and attracting a larger customer base with our industry-leading intelligent and electrical technology across the board."
It is worth noting that the performance of Xiaopeng Automobile has also attracted the attention of the capital market. On Dec. 1, Bank of America Securities issued a research note reiterating its "buy" rating on Xiaopeng Motor with a target price of HK $45 from HK $39. On Nov. 17, UBS upgraded Xiaopeng Motor to "buy" from "neutral" with a price target of $13.00 / share. In addition, China Merchants Securities also on the Xiaopeng Auto to increase the rating, the target price of 50 Hong Kong dollars per share.
Since the announcement of All in car manufacturing, from the uproar of the outside world to the capital generally optimistic, Xiaopeng He led Xiaopeng all the way, let the market see his determination and perseverance to lead the business out of the predicament. With the launch of new models, increasing deliveries and improving competitiveness, Xiaopeng has created an exclusive market for itself. P7 and G9 have become the first choice products in the minds of consumers, and Xiaopeng is leading the new force of domestic automobile manufacturing to accelerate.
Organization adjustment, future development emphasizes user orientation
Throughout the development of the automobile industry, from "electrification" to "intelligence", the driving force of industry progress is always the demand of users. For the new power of automobile manufacturing, combined with the brand's own genes, in-depth exploration of user needs, keep up with user changes, pay attention to user scenarios, create products that stand firm in the industry competition, and win the continuous favor of users.
As the leader of the new force, Xiaopeng Automobile cannot develop without the user-oriented organizational structure adjustment. Through a series of changes, the organization moves closer to the market, focuses on the user, and has a long-term layout in the areas of product, delivery, service, and user operations.
Specifically, the product, strategy, technology, sales are established through the organizational adjustment of Xiaopeng Automobile. OTA and the three model platforms E, F and H of the five committees. The product Committee has established vertical departments related to the product, and three model platforms run through the project team in the product development process. This adjustment has once again improved He Xiaopeng's control over the product and deepened the product management.
In the daily operation, Xiaopeng Automobile will change the past cluster strategy and establish five systems, including strategy, research and development, supply and production, marketing service and functional support, to promote the consistency of business chain objectives and support the implementation of corporate strategy and large product matrix.
He Xiaopeng revealed in the financial report conference call that in the past, Xiaopeng Auto marketing team focused on sales, in the future will strive to improve marketing and service investment, introduce more excellent product marketing talents, formulate offensive and defensive strategies, better meet the product matrix, better meet customer needs.
After a series of organizational adjustments, Xiaopeng's car user orientation is more clear. Some management? Based in new,? Standing? Peng community, increase the interaction with users, shorten the distance with users. Xiaopeng Automobile has also set up a cultural service department to listen to the suggestions and suggestions of owners and listen to the internal needs of users. APP mobile phone Bluetooth key upgrade, mobile phone Bluetooth key can unlock the car, C charging card can check the status at any time, search for car and find a one-stop service, bring more convenience to users.
It is not difficult to find that Xiaopeng Automobile is adapting to future changes from the two directions of organizational adjustment. First of all, from planning, products to technology, really do a good job of Xiaopeng automobile needs, do a good job, avoid worthless needs. At the same time, the focus is on the new three-electric engine, power, vehicle platform and smart platform. Second, through the model matrix products, to meet the needs of customers end to end.
He Xiaopeng said in the financial report conference call that in the future, Xiaopeng Motor will take user needs as the foothold, shorten the research and development cycle required for each new product, greatly reduce the research and development cost of various models, make the quality of hardware and software of the vehicle more stable, and strive to improve user experience and sales.
Endured the ordeal and won the smart car race
Suffering is the only way to greatness. The great companies in the history of technology, such as Alibaba, Tencent, Huawei and Xiaomi, all rely on the precious "legacy of lows" and "gift of setbacks" to get where they are today. He Xiaopeng admitted in the earnings call, "Recently I have seen a lot of historical ups and downs related to manufacturing. Xiaopeng believe that the current adjustment is mainly medium - and long-term, short-term action will not be deformed." It is expected that Xiaopeng's market share will gradually expand in 2023, and the market will continue to see significant changes in Xiaopeng's sales after several quarters.
In fact, in the continuous training of the market, Xiaopang Automobile has the determination to reform, dare to participate in the dangerous beach, break through the minefield, dare to gnawing hard bones, and promote the continuous optimization of products through reform. At the same time, Xiaopeng Automobile has also strengthened the reform action, inward, to solve the problems faced by the enterprise, break through one difficulty after another on the road of development, in the increasingly fierce competition in the field of intelligent vehicles to win a place.
The race for smart electric cars is a marathon. Only master the core technology and excellent comprehensive ability, in order to obtain large-scale income in hardware and software, and finally in the long-distance race to win. Speaking of the future, He Xiaopeng firmly believes that the real era of intelligent vehicles will gradually expand from the second half of 2023. Xiaopeng Automobile will unswervingly invest in autonomous driving and intelligent cockpit research and development, obtain excellent cost control ability on the intelligent route, ensure customer demant-oriented research and development, improve the competitiveness and profitability of intelligent products.
Looking ahead to the fourth quarter, He Xiaopeng said that Xiaopeng Motor will work hard to overcome the adverse impact of the epidemic and do a good job in the medium and long term development of internal adjustment. "Due to the ramp of the G 9 production line, deliveries in November are expected to be no less than 5,800 units. Xiaopeng Motor is doing its best to solve the problem and deliver the accumulated orders in hand faster. Deliveries will bounce back sharply in December." He predicted total deliveries of about 20,000 to 210,000 units in the fourth quarter of 2022, with estimated revenue of about 4.8 billion to 5.1 billion yuan. In the next few quarters, Xiaopeng will accelerate the pace of internal organizational reform and management improvement, and is confident to achieve the long-term goal of becoming the first camp in the intelligent automobile industry.
The agency is optimistic about the medium - to long-term dimension of Xiaopeng, noting in the research note that Xiaopeng has abundant cash to support the high R&D, production and sales investments needed to expand the company in the coming years. Intelligent electric vehicle industry resistance is long, Xiaopeng automobile positioning space is broad, intelligent advantage is obvious. Short-term model replacement and sales pressure do not affect the company's long-term value, and it is expected that the product strength and sales volume of new models will be greatly improved. Moreover, as the core element of competition in the electric vehicle market shifts from electrification to intelligence, Xiaopeng, as a pioneer in pure electrical intelligence, can focus on technology accumulation and is expected to significantly increase its market share and profit margin.