XPeng (XPEV) 21 May 242024 Q1 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for the First Quarter 2024 Earnings Conference Call for XPeng Inc. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Xie, Head of Investor Relations of the company. Alex. ahead, go Please

everyone, Call. to Hello, XXXX First Earnings Conference and you. Xpeng's welcome Quarter Thank

and results financial and Our operating available earlier newswire online. today services were issued by

and Finance remarks, of Mr. President the earnings will Vice conference You Zhang, Chairman view today's Charles and Xiaopeng; Gu; Co-Founder, be on will call team A Brian prepared Mr. at and call press Wu Chairman with conclude IR management on session. available website. section Management this the Vice our and President, Accounting, Corporate myself. include replay release ir.xiaopeng.com. can Dr. Q&A Investments; Participants Jiaming call of the Finance of IR President Vice by webcast will also will our from and website with our section begin Mr. and visiting a the of a of CEO,

we Before the discussion contain Litigation under forward-looking note made Securities Private Reform statements provisions U.S. today's continue, please the XXXX. of Act harbor will safe that of

statements uncertainties. involve and inherent Forward-looking risks

non-GAAP Mr. includes call unaudited our this contains will as call the go the results the release Exchange not in measures. the Chairman and over also regarding of required information earnings as well financial Please The release the from expressed except views the non-GAAP applicable risks such, materially any GAAP filings ahead. now different assume with the and of and to Co-Founder, company reconciliation may note unaudited as Further XPeng's unaudited under As a and to I public that of earnings relevant forward-looking XPeng's CEO, obligation Please uncertainties to filed statements, financial turn is today. other the U.S. and included unaudited any Securities as these Xiaopeng. be conference does disclosure measures. company Commission. GAAP measures company's press update measures law. press

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time achieved this the successfully technological have with We for through a cost advancements XX% reduction model. first

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to second driving to boosting extensive amounts expedite will high-quality be is and bring sales data, this Western worldwide. the end-to-end expedite driving an up XNGP the in from using plan experience, AI Southeast and with by partnerships customers or [indiscernible] East to first scenarios. turn adoption over underscoring in other amount leading are the and will in which of half our will of countries our The expected Australia. we XXXX, to we model established and access a data Europe, will complex profit human year, possible half quite Asia, surpass We Nordic This our its accelerate This equal drivers the auto our of the unprecedented is training our is high-level achieve powered models launched that year, will capabilities widespread With countries model expand margins in as broader rapidly or of dealership generate overseas groups our of competitive technology of model, iteration. training Middle XNGP our sales auto market. into soon Our auto AI drive penetration base AI-powered that to architecture network features.Regarding high-level ADAS with AI owners those with Large equal masters of have a the international edge XX commencing features. soon growth. tremendous deliveries will AI-powered in to the data. scale fleet, In expansion

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and smart positioned as confidently consumers. is to eco-friendly as in valued smart overseas by faster tech-savvy XPeng strength product and are experiences international models. a technologies superior highly brand and EV Our such markets, charging offering mid- product auto dealers high-end

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Thank Xiaopeng. you,

Now results of let overview in I'll RMB our the first my otherwise of brief for provide unless me a XXXX. only financial stated. discussion reference today, quarter

margin technical increases of from technical the XXXX related margin models, year-over-year primarily XX.X% for the X.XX The the X.XX platform lower research billion with year-over-year Volkswagen for revenue seasonal was of to others quarter year-over-year a and an the which XXXX fourth first XXXX. quarter and product the contribution impact and Our quarter decrease the the deliveries, the the and is collaboration mainly primarily from deliveries offset were increases of were of of PX total strategic the cost the offset XXXX. the by representing of quarter-over-quarter and of the to and inventory vehicle XXXX, software mainly of the the increase representing first development X impact, GX the and service Group. in Gross was and of partially billion of XX.X% same X.X the were year-over-year to first partially particularly XX.X% quarter losses XXXX, first revenues XXXX Revenues an quarter quarter-over-quarter. by model of in and for period increases percentage were The quarter-over-quarter compounded on billion XXXX, for for of the a to commitments attributable of GX purchase on XXXX. Revenues quarter compared X.X% The services quarter provision for X.X% related X.X% XXXX of quarter-over-quarter. of margin X.X% quarter from XX. XX increase by quarter-over-quarter and decrease with attributable XX.X% to to sales the an Model higher this The compared were XX.X% for negative quarter. with first improvement vehicle was XX.X% attributable of quarter-over-quarter. and of the X.X% of fourth of a same of and attributable Vehicle points increase first of increase a for for negative the with year-over-year reduction period XXXX and an decrease year-over-year XX.X% mix for was increase

gain X.XX XXXX. fair of sales quarter quarter of management smart programs. mainly billion derivative the upcoming stronger vehicle franchise mainly timing for of and X.XX billion gain expected to This XXXX year-over-year first an a the the The noncash X.X% XXXX, contingent was the lower lowered flat increases As compared contingent and R&D on XX.X% due of the the PX SG&A the to first the the of the was relating year-over-year for and new progress were of of promotional for related consideration vehicle is market with The change were business. for quarter fourth of representing X.X% DD's expenses.Fair and quarter-over-quarter. quarter-over-quarter. in X.XX lower decrease on advertising the were stores new expenses the models. to from quarter a line and to liability acquisition forecasted billion and increase was with quarter-over-quarter amounts of which consideration marketing, value expenses basis first commissions XXXX, auto to billion an value decrease $X.XX increase year-over-year due of quarter-over-quarter the resulted for

result of XXXX the foregoing, of of XXXX from first a was of operations billion was quarter billion the Net loss the X.XX XXXX compared billion with XXXX loss of the same quarter X.XX fourth same period X.XX quarter compared the the XXXX. for with for for X.XX As for period billion for billion billion XXXX. and quarter first of fourth X.XX for of X.XX and the

to billion. restricted XX.X of of I As of our our listeners please time mindful total call, more for This refer cash the our be quarter the details release and go now on March deposits short-term We'll would XX, investments results. and Operator, XXXX, earnings of earnings to XXXX line questions. encourage ahead. press To for equivalents, had cash company remarks. in open financial first our prepared our concludes length cash,

Your Tim Instructions] first comes Stanley. [Operator Hsiao with Morgan question from

The So revenue question the we recurring. that the collaboration from contribution and it's the quarter, with service management first Volkswagen. quantify the about in Volkwagen first from of know contribution revenue roughly is my

So quarter-over-quarter related architectures the there to will it following first So that's the those the year? my Is continue revenue that climbing from chance who agreements months? the E/E within new question. do can't any to the in

Tim, this is Charles.

recorded software in platform QX. collaboration the the revenue in So Volkswagen other from revenue service been has and

is As recurring you know a in nature. that it

going be technical services quarter, book So forward, to able will software, platform I we revenue. that think every such

million platform subsequent quarters, booked that I will software revenue QX. more what So and than revenue. services the And in such be in we QX, a believe booked in we multihundred we think

the company very that and with sales and is the platform And services us. so And revenue, technical software vehicle nature level at revenue, a obviously, given also created percentage and our very business be for platform the low margin that believe business think GP high-margin software a I mid-teens unique of we, I we the think Xiaopeng GP it out, as pointed to margin And the in auto margin. -- our therefore, we sustainable the industry. model GP can that business

recognized deliver question from second In address half continue to revenue E/E revenue the addition from our cost margin. the will we chain start and also the will be through we to architecture vehicle and improve architecture, from you. and and our to the Thank your that, supply To that GP E/E year. this further of reductions to the expect the regarding technology

Got it. Charles.

driving second model next we end-to-end xG that Level year. noticed upgrade leverage question basically is Tom quarter experience X autonomy China vehicle about third So to because in this to by achieve cover my overall a and would large to year of

to we do into to such spending can you That's second to -- technological opportunity? So target, question. expect a when and period that translate or upside my increase expand car the leadership monetization new R&D achieve should manfully during think potential sales

your for is much very year. which achieve question. to And the we your and of one I before ability question, next LX correction you make Thank that answer to there's hope

to regulations need and as know we that as catch to have the that rules implement actually also well being hardware able to the However, would up.

therefore, So large the regulations at large new generate people the that's to and models know and amount will rules. to these we point have about on and huge work that companies two, those our going increase And past, actually we -- of of one. globalization. terms same need the thirdly, we rules the have working actually large and the AI And all to change. need And respect a the moment, impact in have in continue manpower to on the people don't And say, to we with involved. point as is models, models

would XXXX. to we In the be And and power would scale, model latter how speed that would we sponsify. going the the terms year. now I I And next going it's and to it's about would going half XXXX It's we be past, able to it's large many that it a take the how et think how of my In with and would need it's of the the that say cetera. with technology when hard and and faster development be what of the need, on thinking say. to the than like. however, algorithm much one people say AI, time was relied earlier or fast to to hard is human be original speed, or possibly

So we'll see. wait and

Lee with Bank Your next of question comes America. from Ming

of question So details to my new pipeline. first product related more is your

So in X will products. second have the half, you

product first project. related The is to MONA

version the product. and So could product some launch of also for details version? guidance on timing your give product and regarding also you pipeline, numbers brand the give XB you the XC year, MONA regarding the more brand the for next And could also your [indiscernible] the

version quarters, in release an to from details our will presentation. model have perhaps And do because heard different we And a previous into moment. car market car to first be XB some we are in the we the market in this at car in following not be XC I to of of this that few plans And in we to different XXXX, starting build the in the beautiful terms different rate further model, having we will will to would the that perhaps existing market. you our and is from the onwards XB roll each see be is your being and so then this simply launched models. of specifics, secondly, have out I'm all and market most or you models of think looking really QX still And models there an big quarters market much therefore, in what mixed And our market. really a in anesthetic And to my this in all, a the MONA, And will penetration don't a XXXX that the more mainstream of starting year, quarters, into too XB we cars Thank market. version at focus, the terms market for question. and to out a for updated certain not models continue as including for the the offer MONA. And already say, position this bring and there different brand speak.

as to the And with share your second market our for terms forward the MONA before, said are on looking thinking external. will next at for and have question. building most addition, month, the also of series, And And that this is a in it to hope car going that answer was it part and and authentic I of car most of Moneris is intelligent we in the to we And will in amount above a my more MONA bring actually hope series. range the the cover beautiful that driving we about profit, car the So the into MONA we grades we deposit series, autonomous driving, hope in being of of of various company autonomous also the for mainly bring And the XXX,XXX. a the with with a or range and driving. for good price autonomous price that will the past XXX,XXX.

few expanding officially entered next last brand week, in months market Hong PM countries, the especially Kong South. more So also the in

onshares based right entering your overseas So which in market. a on your the launching when Right XNGP you volumes XX,XXX new you provide you will target, now, more will few more you ahead also that market also times progress the incur order than you you're total mean a of expense R&D units. original overseas market. and now, be because of are mentioned And

It's Brian.

question. your address me Let

would development. pace accelerating I international we can plan, are, as this overseas year, of our our regarding all, say you of see, First

the more markets. advanced out roll The targeting to available exact XX with these to that EVs. of We we to markets, technology than to our make of type can correlates number countries also obviously are industry-leading models

the already GX For example, we're in PX. Europe, now right selling

the would delivered GX hopefully and say, driving are in year. be in with probably soon. driving are couple next to or early very other be end Southeast launching left GX example, markets, also We Hong of by will launching deliver Asia, -and right-hand this in and In of right-hand out the months the we for a probably Kong, will point month probably year driving followed the this I you

terms well international track. our this of as number as We than more the in gave that number XX% on as thousands So expansion whole see you we like can guidance to the of original think tens of would in delivery is achieve terms overall we quarter, is valid. still of

bodies And number the currently make this those we regulations we is actually these developing markets. going are a give the overall The to increase working right of want actively development material regulatory -- our with XNGP-related that technology, expansion. now with driving guidance overseas testing sure markets, in are also compliance make technical in regarding to also to R&D. So international and not smart

and capabilities as again, in First of targeted want all, But just the has the language our the overseas. been as the XNGP for are echo I development AI think we subsets Xiaopeng benefit model accelerate also to that also removing also we and will mentioned, number the of markets in scenarios need development model our of of map capabilities. the different increasing also using of still help what well now very development large bring large with the to just our capability

we some think available expense of because at increases I seeing forward see all, as probably will same of of these R&D we capabilities later some by the that And year in of time, being next also, made early well material to markets. don't as So the look year this overseas in effort.

Deutsche question Your Bank. [indiscernible] with comes next from

question first the for year. this is quarter My about number

the You're for quarter very about confident actually this year. number

will growth in assume we If margin. very monthly high we because and about do reduction. growth. existing volume, be the that comment if between say fourth you the cost margin MONA the XX% upcoming the a If last and breakdown quarter, the XX,XXX, you what's XX Meanwhile, volume year have it products one the will see XX,XXX Number can is largest. we be for

Volkswagen. and on higher from income Second is margin additional sell the a have so export, EA

that gross a to margin So XX%. is close

It's Brian.

me respond. just Let

segments in the then. of of be first delivery be the First also MONA quarter of the all, -- our full that you in and see product delivery fourth will -- our this we'll will launching year,

the stages, at So products the meaningfully the -- of a as quarter, monthly but is X delivery in tell, into very those starting contribute different at will you can different delivery very different. fourth the because

are over but we breakdown, envision achievable. simply terms both to But monthly you I as both last anticipate are year's prospect very products about months, believe. we as as subsequent that's as think next is also, assuming in number the I that to would to delivery give we the increased numbers, as monthly launched super only want and because We maintains that well early that we the next beginning what in of excited these last profile also cycle to the heard what that products is of growth months. will the our And the products have emphasize XX be would under quarters. exact delivery in want number you partly the growth. X XX stable control. just make year, will also how I models models say for full So Again, additional I going -- sure is well product we I'm updated as the the significant to of as comparable of delivery say, not That's volume. number well the generating

sure make more want than monthly is seen. episodical to like want on sequential model and actually other bursts growing achieve a a to some volume in we rather that basis you've the we big launches So additional stable manner

given remaining other the next a that until models next the later. of give think you pre-look quarters few Hopefully, less in we'll year probably earnings. of that's I kind of So the

model also comment, terms sort are all, in say, from contribution though positive first we still A-class margin, healthy the I it's of this margin of model, In like of MONA even I healthy to quantities. and [indiscernible], anticipating would would an

For a to contribution except models, higher EA will current say, from think we the than the be recurring Charles mentioned, mix. will margin to the also, profit I time, the continue our materially from steady segment probably would it's to then, we additional collaboration. become At same profit B income. going And both gross contribute, contribution as Volkswagen product anticipate

products. all currently these well gross the view of for our as profit with contribution So the on new sort margin as potential

profit gross low mid- the business for our end of overall We are to margin this maintaining year. mid-teen healthy by to

EIB that see plan power And our the the launch EIV do our for actually will won't big a is have the our version second and also What's launched peers increase. chain version for product. question we

that. disclose is we very not this terms something generally to the for willing flying cars. our is in BEV product would forward, we in you that And say your in question. to I of at designs our because information being in it the any implemented be looking And stage. and going And would relation Thank can planning be still speaking, simply

the better plans signing to the and it for detailed details, will more more that product and when we part, with it the auto be the market. is for further becomes post the BEV concrete we have party So until and actually share wait

from coming lot consumers point next few supplement is And indeed, in just me points. come, the we quite demand the the allow to there see of PHEVs. in year please So past a X that market, is my to year yes, first the or that, a will and from X

And in from on certain However, actually in terms filled run be believe for et sometimes in product. in lot and I technology BEVs terms year the the think simple, market, globally parts carefully. likely for Asia do cautious, hear are the space have is countries not the actually do very or we BEVs.In we and on the versus in into car experienced only technology. if it BEVs or -- for of very cars to and you very instance, addition, few see experience, of obviously, quite straightforward they certain electric building it jump is it go see at will And certain PHEV speak. these in so more they certain part the and elsewhere of to and decide a little, to the And in model, and will vehicles, it's consumers look also as in these only will pure of for as in for and watch we that countries and very out a at do continue can that certain that that as XP, a and Europe go that into need and could think it we terms actually by movement having and confidence to we that and cetera. also you very construction from need PHEV we get times. will vigilant. the petrol that maintain consumers, what moment, And would we next having roads, not is And to to to And consumers a the we up, station the of it's the it a this realize UltraXX-series more time of also working having the more hard our they

Your Paul next with UBS. question from Gong comes

And it becomes big it industry made some that mode. upgrading. when and why the terms in So it's kind also that difficult question uncertainty terms down in the more way. mature, to was involves decision-making of feedback also, the been my is regarding decision slows feedback There is of the figure seeing first in has the the in model out of

about is first this So how think issue? XPeng does This my question.

And you respect to And Yes, question. for to instance, these autonomous bring. the help be pilots data say industry we appropriate be the out in best looking And or well are I'll get, that box X various capability. as sure able have the that now source. language as large versus able, are also we beginning, and it about there the analog model the need the XXB worry And basis be your us OEMs models are what much black that model, secondly, do trying a uncertainty. driving forward. cetera, can we technology, to of of on that you work the we that with able would sure we are and if And always second is your would to technologies carry NI the for course, we was we to of not trials. see the vehicle, this to and model it. would and ensuring model, a And the from however, and actually, Thank large of keep do the transformers requires we to to with need size very as et to the we the safety have can question, to an large I value huge did model, is end-to-end on And from what indeed such the once make entirely and and whatever. of if With understood the advancement do very and but of own are answer. amount at open try end-to-end control identifying what I'm our to use set I not move different to are actually building

regarding the question So second my channel. is distribution

location. a from I of can out relatively as stores stores mostly including the you and are do see limited the area area the the gradually new cost at of announce prime portfolio, say stores average expand prime but the XPeng in need far, expand some that shifting the models So with location, most of size even see to the or MONA, the

because we high have to past, end stores your in about instance, in have area in And well at of lower cover are with mid-end amount to In a of these lower-tier malls. many stores going Thank for we QX the QX these XXX successful be that to an services. can with able huge better that even looking and the as even has we do you conversion tier and of openings first for office as for store we we up predict And that tier order last to stores in stores the year, cities focused the the terms have and very And question. in of asset this our QX XXX comprehensive thirdly, addition, and year, cities it of new this appropriate X of optimize recovered believe always in see channels. would all, we of again, year, secondly, opened is plans we that we that by actually cities. and available open with believe and And for been are on try will not the a space our going And into the the and the continued floor we to mainly more support And we provide we rate high. and stores. possible. QX area do

Goldman next question Your Hou Tina from comes with Sachs.

Let me just translate.

segment, brand, for customers, smart market? like price terms the And competing functions are in demand in MONA XC the demand the of customers our less models with also might the So in terms what this the have some for for higher the then so of they and pricing. of

we I think, part from, any advantages target sales XB competitive design, volume Also, are distribution. the in some what aside our the So key vehicle of of for MONA do segment. have the

launch come I the yes, met because huge versus you for card it's that MONA XX,XXX a our earlier, high series, per for the very time we XX,XXX would Anyway, good product a the much and also price between the very Xx, to a I sell a we price car experience in at very XXX,XXX will beautiful, goes of to that was looking that all, few space, and a the and X discount vehicles call however, question. in price means a of part first and the is product And also a which provide consumers that price product as level. see to comments. has of technology. And sales And better question has for your smart talk asset Xx that range competitors a And which our actually be as provide to driving good about After competitors' X price. are comes a work our I'll to that have much it to one time that In data give implement product that our the nobody with to kind model you USD at exit. is cars it to XXX,XXX. functionality about provide if with the addition, moment, mono Thank you good present And this to And not of of but would MONA able only this every hard difference the finally, the it's make that provide now to a with say not by XXX,XXX and smart see with space, is go MONA product years In other the also presented price of would our XP for was has not introduced past, is MONA validated at and able a of go actually units this for but up assure XX,XXX, rule can MONA all actually in they specific actually, able will that are good the able above our this and in been you bit is technology and with range, product been of to events. as actually other sale this we product I past. a believe into words, if to this, and beauty and up the price with asked month. launch. you in reduction, and the can terms this the our will of a by above the so from will cards old look only demand. huge. And up in the with external we beauty XX,XXX cheaper in we we and and R&D USD model by of investment well meet able need be was able And this down range what is

looking say orders of getting they answer we the that would functions, data. driving advanced not that strategy question the a the autonomous classifying back and what at business rather like So is the some possibly It a when was high-end need are in actually that different that of would with the or says to making and of yet it highly be And will levels smart very I high-end to popular out the and something that the is and my establishing consumers I And I are quite thinking in calls mobile is for consumers. second users, respect your it And was put these likely industry may people driving. actually, not Internet to that data generators. phone to days. generators phone the they are who the fewer those is that

is if were range. simply driving reality. that out actually So XXXX, not RMB price that RMB will to adopted are analogy a of their they at of this able would the once of in afford believe be to prince XXX,XXX the past, the the without coming price XXX that in functions. driving the I was the and the And see would into thinking. in do And they range, It's next to this range, able we this use autonomous and afford look this, consumers group year that they more over we all autonomous this cars

this is Also, Brian.

channels well. question XC product, just as me XB price your on used this be see also prevalently quite will into successful the we will -- segment. on segment Let comment what the product in

our case sort with of be use. DD, think also MONA. in product, the of I base to multipurpose in segment, targeted use XB still, at very And even I success So though the think this our apply for partnership with will user be cases but significant mobility very, prudent not have that we'll use collaboration

quickly follow to just up. so And

XB then months. units a should this next expect the XX in expectation? we XXX,XXX XX and still Is for months XXX,XXX the reasonable the first So units part, still in

DD have be be if in provide we such we I still valid, in an still think -- will still Yes. agreement achieve used DD the The MONA system incentive is they incentive to with volumes, those for valid.

-- mainly so DD, they is want this So to many purchase. to is how up

No.

mobility DD which agreement, they certain own has if will their ecosystem, to they to in the could actually purchases. number, an it agreement Mona receive additional public does is used relate think available, I not our the that the in if is read a product add made system, you incentive. It

of software the So question in my terms revenue. is second services

recognition been in So of see our and and overall margin helpful very started terms profitability. we has

labor we is similar not a exclusive, with actually actively exploring our because with Volkswagen So agreement collaboration partners? are other

In strong very I -- to actually that a create Volkswagen value other. -- strategic collaboration each strategic think with value our

technology. collaborating in We a For partner chain to are the there more as other believe on can and of to each do we forward And we going things example, also identified lot also, strategic we work a other. collaborating supply on process, are closely areas. the we are the during also opportunity

the from However, were not collaboration each I other. with think collaboration to perspective, Volkswagen exclusive our that

also for that opportunity looking think So to therefore, players. other I open-minded are the collaboration with we strategic

a I see value the other, can to that we each partnership and what that relationship. how we just create supplier think is bring most to we value a value not However, --

That does the like remarks. call closing to back conclude our question-and-answer over I'd turn to for company session. the

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