Chinese electric vehicle manufacturer XPeng Inc. ($XPEV) has reported a reduced loss for the second quarter of 2023 compared to the same period last year, marking a significant milestone in its financial performance. The company announced an adjusted loss of 1.29 renminbi (approximately $0.18) per American depositary share, a substantial improvement from a loss of 3.10 renminbi reported in the previous year.
This news comes as three analysts surveyed by Capital IQ had anticipated a normalized per-share loss of 1.32 renminbi, indicating that XPeng has slightly outperformed market expectations. In terms of revenue, XPeng showcased remarkable growth, with its June quarter revenue soaring to 8.11 billion renminbi, a significant increase from 5.06 billion renminbi recorded in the prior year.
Nevertheless, this figure fell short of the analysts' projections, which estimated the revenue to reach around 9.07 billion renminbi. The company's vehicle deliveries played a crucial role in this revenue growth, with XPeng successfully delivering 30,207 vehicles during the quarter—a notable rise from 21,821 units delivered in the first quarter, translating to a 30% increase year over year.
Sales of vehicles also surged, jumping 54% annually to 6.82 billion renminbi, primarily driven by enhanced delivery figures from the manufacturer. Chief Executive Xiaopeng He expressed confidence in the company's forward momentum, stating that the technological advancements accumulated over time, combined with breakthroughs in artificial intelligence, would be transformed into sales growth within China and the international market.
He remarked, 'We are confident that we will return to the track of fast growth.' Additionally, XPeng's gross margin for the quarter improved to 14%, contrasting a negative gross margin of 3.9% a year ago. This improvement was credited to cost reduction efforts achieved through technical enhancements and revenue generated from the company's strategic partnership with Volkswagen Group.
Co-President Hongdi Brian Gu highlighted that a master agreement was signed with the German automaker last month to expedite the development process of new electric vehicle architecture, signaling fruitful collaboration. Looking ahead, XPeng forecasts deliveries for the ongoing quarter to range between 41,000 and 45,000 vehicles, which reflects an anticipated annual increase of approximately 2.5% to 13%.
The company already commenced July with 11,145 units delivered. XPeng also expects quarterly revenue to fall between 9.1 billion and 9.8 billion renminbi. Analysts from Capital IQ have noted a more optimistic outlook, anticipating revenue could reach 11.26 billion renminbi. Brian Gu conveyed optimism regarding the company's future, remarking, 'I expect as the big product cycle drives our sales growth in the global market, our economy of scale, operating efficiency and cash flow will significantly improve.' In stock market activity, XPeng shares are currently priced at 7.36 renminbi, marking a change of +0.16, which correlates to a percentage change of +2.22..