Recently, the financial report released by Xiaopeng Motors has been flooding the circle of friends. Many people say that the company seems to have suddenly opened up the Ren and Du meridians.
As a melon-eating crowd, I carefully studied the financial report content at the first time and found that there are both amazing counterattack stories and several industry codes that are worth pondering.
Today, let’s talk about how this new car company, which was once detested, achieved a Jedi counterattack?
Let’s talk about the most eye-catching data: revenue in the first quarter of 15.8 billion increased by nearly three times year-on-year, and delivery volume directly hit 94,000 vehicles, and the loss was halfway from 1.37 billion in the same period last year to 660 million.
What made investors most excited was that the US stock market soared 13% on the same day, and its market value soared by 17.5 billion yuan in a single day.
This scene reminds people of the grand occasion when NIO stepped out of the ICU in 2020, but if you look closely at Xiaopeng's financial report, this turnaround battle is obviously more organized.
Many people may feel that "large volume controls fullness" when seeing a 330% increase in delivery volume, but if they disassemble the data, they will find the way. The average bicycle price dropped from 153,000 in the fourth quarter of last year to 146,000, which is not a good
Recently, the financial report released by Xiaopeng Motors has been flooding the circle of friends. Many people say that the company seems to have suddenly opened up the Ren and Du meridians.
As a melon-eating crowd, I carefully studied the financial report content at the first time and found that there are both amazing counterattack stories and several industry codes that are worth pondering.
Today, let’s talk about how this new car company, which was once detested, achieved a Jedi counterattack?
Let’s talk about the most eye-catching data: revenue in the first quarter of 15.8 billion increased by nearly three times year-on-year, and delivery volume directly hit 94,000 vehicles, and the loss was halfway from 1.37 billion in the same period last year to 660 million.
What made investors most excited was that the US stock market soared 13% on the same day, and its market value soared by 17.5 billion yuan in a single day.
This scene reminds people of the grand occasion when NIO stepped out of the ICU in 2020, but if you look closely at Xiaopeng's financial report, this turnaround battle is obviously more organized.
Many people may feel that "large volume controls fullness" when seeing a 330% increase in delivery volume, but if they disassemble the data, they will find the way. The average bicycle price dropped from 153,000 in the fourth quarter of last year to 146,000, which is not a good thing. The reason is that there are objective factors in the industry's off-season, and that Xiaopeng takes the initiative to reduce the price of old models and clear inventory. Just like the old flagship selling mobile phones cuts prices and increases sales, although it lowers the average selling price in the short term, it can quickly recover funds. This "price for volume" strategy is a wise move to some extent at a time when the price war is intensifying.
However, what really makes investors give a thumbs up is the hard indicator of gross profit margin. The overall gross profit margin increased from 14.4% in the fourth quarter to 15.6%, and the gross profit margin of the automobile business doubled from 5.5% to 10.5%. This is like a person who sells pancakes. He originally lost 50 cents for every one sold, but now he can make 30 cents. What's the secret? The scale effect is beginning to emerge. Taking MONA M03 as an example, this model with a volume of over 100,000 yuan contributed 75% of the total sales in the first quarter. Although the profit of the bicycle is small, massive orders dilute R&D and manufacturing costs. Just like the cost of Tesla Model 3 dropped sharply after its domestic production, Xiaopeng obviously also tasted the sweetness brought by the hot products.
However, what surprised me the most was the "service and other businesses". This sector, which includes technical authorization, charging services and other businesses, has a gross profit margin of up to 66.4%, contributing 1.44 billion yuan in revenue. This reminds me of the story of Apple making a lot of money from the App Store ecosystem. The technical service fee provided by Xiaopeng to Volkswagen Group is essentially selling its own intelligent driving technology. This "selling shovel" business model is often more profitable than selling cars. No wonder He Xiaopeng dares to say that he wants to be a humanoid robot. It seems that he has long been laying out new profit growth points.
Speaking of the narrowing of losses, there is a detail worth pondering. According to non-US accounting standards, the operating loss is 800 million, but after adding 540 million government subsidies, the net loss is cut in half. This shows that Xiaopeng's main business is actually still in a loss-making state, but he relies on policy dividends to achieve book profits. This is like a student exam. Although the actual level is only 60 points, the teacher gave an extra 20 points and passed the overall evaluation. Investors need to be clear-headed that removing this "beauty filter" will make Xiaopeng still have a distance from real profit.
The next step is the second quarter guidance. The delivery expectation of 102,000 to 108,000 vehicles means that an average of 34,000 to 36,000 vehicles will be sold in a single month. This number is not an exaggeration in the entire new energy vehicle market, but considering the continued escalation of the price war, whether it can be fulfilled depends on the performance of the new model. The upcoming G7 and P7+ are priced at 250,000-300,000 yuan, which is just in the confrontation between Tesla Model 3 and domestic high-end models. The competition in this price range is as fierce as the 6,000 yuan price in the mobile phone market. Whether Xiaopeng can break through the siege depends on whether the intelligence of these two cars can form a generation gap.
The "three curves" pie drawn by He Xiaopeng at the financial report meeting sounds much more reliable than Jia Yueting's ecological reversal. The first curve continues to fight against AI cars, the second curve points to overseas markets, and the third curve bets on humanoid robots. What interested me the most was the overseas expansion strategy. The breakthroughs in the European, British and Southeast Asian and Indonesian markets in the first quarter indicate that they did not engage in low-priced in Southeast Asia, but chose to hold high. This is much more clever than dumping stock cars in the Russian market.
However, the most worth digging is the underlying logic of the robot business. While other car companies were still installing lidars for mass-produced cars, Xiaopeng had reused the automotive EEA architecture and the technology of the intelligent driving team to robot research and development. This technological synergy effect is like Meituan using takeaway algorithm to optimize the store business. Once the Ren and Du meridians are opened, the effect of 1+1>2 may be produced. In particular, the computing power of Turing chips is 3-7 times that of existing chips, which is like installing a robot with a Tesla FSD computer. No wonder He Xiaopeng dares to say that it will be mass-produced in 2026.
But there are also hidden worries behind the carnival. There is a little secret in the second quarter revenue guidance: the estimated average price may continue to decline, because the overseas market is currently dominated by low-gross profit models. What's even more difficult is that the entire new energy vehicle market is experiencing a knockout race, just like the smartphone market has gone from a hundred boats to a Huami OV semi-finals. If Xiaopeng wants to break through the siege, he not only needs to continue to launch hot products, but also needs to solve the profit problem. After all, it took Tesla fifteen years to achieve stable profits, and Xiaopeng's road to profit is destined to be long and difficult.
Looking back at this counterattack, Xiaopeng’s strategy is very similar to the classic strategy of Chinese Internet companies: first seize the market with low prices, then build a moat through technical barriers, and finally use ecology to feed back the core business. The popularity of MONA M03 has verified the success of the first step, and the layout of Turing chips and robots is the key move in the second step. However, whether we can gain a foothold in the high-end market like Huawei still needs to observe the market feedback of the G7 and P7+.
From the perspective of ordinary consumers, Xiaopeng’s counterattack is a good thing. More and more domestic automobiles are cost-effective to impact joint venture brands, and our wallets are ultimately benefiting. But investors need to stay awake, the transformation of the automotive industry is far from over, and the subsequent knockout rounds will only be more cruel. Whether Xiaopeng can convert the figures in the financial report into sustained competitiveness may be more important than single-quarter profits.
Dear readers, how long do you think Xiaopeng’s counterattack will last? Is the tri-curve strategy forward-looking layout or a pie to satisfy your hunger? Welcome to speak freely in the comment section!
