Shares of Xpeng advanced after the Chinese new energy vehicle startup reported strong earnings for the fourth quarter of last year and a solid forecast for the first quarter of this year despite widening annual net loss.
Xpeng [HKEX: 9868] was trading up 1.8 percent at HKD40.50 (USD5.18) as of 1.45 p.m. in Hong Kong today, after earlier gaining as much as 4.4 percent. The firm's New York-listed stock [NYSE: XPEV] closed 0.7 percent up at USD9.89 yesterday.
Net loss shrank 43 percent to CNY1.4 billion (USD187.5 million) in the three months ended Dec. 31 from a year earlier, according to the Guangzhou-based company's latest financial statement released yesterday. Revenue surged 154 percent to CNY13.1 billion (USD1.8 billion) in the period.
For the ongoing quarter, Xpeng expects its revenue to jump 44 percent to 54 percent to between CNY5.8 billion and CNY6.2 billion from a year earlier, with NEV deliveries up 15 percent to 23 percent to 21,000 to 22,500 units.
Meanwhile, Xpeng's net loss widened 14 percent to CNY10.4 billion last year from the previous one, with revenue up 14 percent to CNY30.7 billion as deliveries jumped over 17 percent to 141,601 units. The company's gross profit margin plunged 10 percentage points to 1.5 percent in the period.
"Looking beyond short-term challenges, Xpeng is about to embark on a major product cycle," Chairman and Chief Executive Officer He Xiaopeng said. "We plan to launch more than 10 new models over the next three years.
"We will continue to lead the innovation of autonomous driving technology, making it affordable and accessible to a much broader customer base and make market entry into more international markets," He noted.
Xpeng will introduce a new electric vehicle brand targeting a cheaper segment in China's automotive market at the Beijing Auto Show in April, He said during the earnings conference call. The first model of the new brand will likely be launched and delivered in the third quarter of the year, he added.
To further propel sales after the new brand's launch, Xpeng plans to expand its number of official retail stores to 600 by the time the first model hits the market, He pointed out.
Moreover, Xpeng aims to accelerate its global business development this year, with a special focus on introducing the G6 model in international markets, according to He. The carmaker will collaborate with dealer networks to effectively enter key global markets, including Western Europe, the Middle East, Southeast Asia, and Commonwealth countries.
