Shanghai (ZXZC)- XPeng Inc. (“XPeng” or the “Company”) announced on Friday its revenues totaled 26.86 billion yuan (US$3.89 billion) for the fiscal year of 2022, up 28% from the previous year.

The company’s annual revenues from vehicle sales reached 24.84 billion yuan (US$3.60 billion) last year, rising 23.9% over a year earlier mainly due to the higher vehicle deliveries.

Photo credit: XPeng

The NEV startup said it delivered 120,757 vehicles through 2022, representing a year-on-year jump of 23%.

XPeng added its gross margin for the fiscal year 2022 stood at 11.5%, versus the 12.5% for the year-ago period.

Its yearly vehicle margin reached 9.4% in 2022, sliding 2.1 percentage points over the previous year primarily due to the increased sales discount and the growth in materials cost.

The company recorded a net loss of 9.14 billion yuan (US$1.33 billion) last year, compared with the net loss of 4.86 billion yuan for the prior year.

XPeng said its loss from operations was 8.71 billion yuan (US$1.26 billion) for fiscal year 2022, widening from the loss of 6.58 billion yuan for the year-ago period.

The company witnessed its annual R&D expenses grow 26.8% year over year to 5.21 billion yuan (US$0.76 billion) in 2022. The increase was mainly attributable to higher employee compensation as a result of more R&D staff and higher expenses relating to the development of new vehicle models to support future growth.

Cash and cash equivalents, restricted cash, short-term investments and time deposits amounted to 38.25 billion yuan (US$5.55 billion) as of December 31, 2022, said XPeng.

As for quarterly performance, XPeng’s revenues reached 5.14 billion yuan (US$0.75 billion) for the fourth quarter of 2022 (Q4 2022), representing a decrease of 39.9% year-on-year and a decrease of 24.7% quarter-on-quarter.

Meanwhile, the company’s revenues from vehicle sales were 4.66 billion yuan (US$0.68 billion) for Q4 2022, plunging 43.1% from the previous year, while also falling 25.3% from the previous quarter.

XPeng explained that the year-over-year decrease in Q4 revenues from vehicle sales mainly resulted from lower vehicle deliveries for the G3i and P7, while the quarter-over-quarter decline was mainly due to the lower vehicle deliveries for the P5 and P7 with partial offset by the newly launched G9.

The company’s vehicle margin was 5.7% for Q4 2022, compared with the 10.9% for the same period of 2021 and the 11.6% for the third quarter of 2022. Both the year-over-year and quarter-over-quarter decreases were explained by increased sales promotions.

XPeng expects its vehicle deliveries to be between 18,000 units and 19,000 units for the first quarter of 2023 (Q1 2023), which should dip approximately 45.0% to 47.9% from a year ago.

The company also said its Q1 2023 revenues are forecasted to be between 4.0 billion yuan and 4.2 billion yuan, representing a year-over-year decrease of roughly 43.7% to 46.3%