By Kosaku Narioka
XPeng is scheduled to report second-quarter results on Friday. Here is what you need to know:
NET LOSS FORECAST: XPeng is expected to post a narrower net loss of 2.30 billion Chinese yuan ($315.2 million) for the quarter ended June 30, according to a poll of analysts by FactSet. That compares with a CNY2.70 billion net loss a year earlier.
REVENUE FORECAST: Second-quarter revenue is estimated to have fallen 31% from a year earlier to CNY5.16 billion, according to the FactSet poll.
WHAT TO WATCH:
–OUTLOOK: The Chinese electric-vehicle maker is expected to offer its business outlook for the third quarter, in addition to its announcement of second-quarter results. Investors are focusing on any forecasts for vehicle delivery and revenue that management may provide. XPeng’s deliveries in July rose 28% from the previous month to 11,008 vehicles.
–MARGIN: Vehicle margin, which is vehicle sales gross profit as a percentage of vehicle sales revenue, was a negative 2.5% in the first quarter, compared with 5.7% the previous quarter and 10.4% a year earlier. The drops in margin were due to increased sales promotions and the expiry of electric-vehicle subsidies. Investors are closely watching for any signs of a recovery in margins.
–VOLKSWAGEN TIE-UP: Volkswagen said in July it was investing $700 million for a stake of about 5% in XPeng and that they would jointly develop two EV models for the Chinese market under the German brand. Investors are paying attention to any updates from the strategic partnership.
Write to Kosaku Narioka at [email protected]
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