Shanghai (ZXZC)- XPeng Inc. ("XPENG" or the "Company"), a leading Chinese smart electric vehicle (EV) company, today announced its unaudited financial results for the second quarter of 2024 (Q2 2024), showcasing robust growth in both revenues and vehicle deliveries.

For the quarter ending June 30, 2024, XPENG reported total revenues of RMB8.11 billion (US$1.12 billion), marking a 60.2% year-on-year hike and a 23.9% rise from the first quarter (Q1) of 2024.

Revenue from vehicle sales reached RMB6.82 billion (US$0.94 billion) in Q2 2024, up 54.1% from the year-ago period and 23% higher than that of the previous quarter.

The year-over-year and quarter-over-quarter growth in vehicle sales revenue was largely attributed to increased vehicle deliveries, which totaled 30,207 units for Q2 2024, a 30.2% jump from the 23,205 vehicles delivered in the same period of 2023. As of July 31, 2024, XPENG's year-to-date deliveries amounted to 63,173 vehicles.

XPENG MONA M03; photo credit: XPENG

XPENG's gross margin improved significantly to 14% in Q2 2024, a notable recovery from the negative 3.9% margin recorded in Q2 2023 and a slight improvement over the 12.9% margin in Q1 2024.

The carmaker highlighted that its gross margin had climbed quarter by quarter for the fourth quarter in a row by Q2 2024.

In the same quarter, XPENG's vehicle margin also rose to 6.4%, up from negative 8.6% in the same quarter last year and 5.5% in the previous quarter. The year-over-year margin improvement was mainly driven by cost reductions and a favorable shift in the product mix of models, while the quarter-over-quarter gain was primarily due to continued cost reduction efforts.

In addition, XPENG reported a net loss of RMB1.28 billion (US$0.18 billion) for Q2 2024, a significant improvement from the RMB2.8 billion net loss in Q2 2023 and slightly lower than the RMB1.37 billion loss reported in Q1 2024.

The company's commitment to innovation was reflected in its R&D expenses, which totaled RMB1.47 billion (US$0.2 billion) for the quarter. This represents a 7.3% increase from RMB1.37 billion in Q2 2023 and an 8.6% rise from RMB1.35 billion in Q1 2024. The increase in R&D spending was primarily due to higher expenses related to the development of new vehicle models as XPENG continues to expand its product portfolio to support future growth.

As of June 30, 2024, XPENG had held cash and cash equivalents, restricted cash, short-term investments, and time deposits totaling RMB37.33 billion (US$5.14 billion), compared with RMB33.74 billion as of June 30, 2023, and RMB41.40 billion as of March 31, 2024.

Looking ahead to the third quarter of 2024, XPENG projects vehicle deliveries between 41,000 and 45,000 units, representing a year-over-year increase of around 2.5% to 12.5%. The company also expects total revenues to be between RMB9.1 billion and RMB9.8 billion, reflecting a year-over-year growth of approximately 6.7% to 14.9%.