XPENG Reports Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results

Rhea-AI Summary

XPeng Inc. (XPEV) announced its Q4 and fiscal year 2022 financial results, revealing a 39.9% decrease in quarterly revenues to RMB5.14 billion (US$0.75 billion) and 46.8% drop in vehicle deliveries to 22,204 units. Yearly vehicle deliveries rose 23.0% to 120,757, with total revenues at RMB26.86 billion (US$3.89 billion), marking a 28.0% annual increase. However, gross margin fell to 11.5%, and net losses expanded to RMB9.14 billion (US$1.33 billion). The company projects Q1 2023 deliveries between 18,000 and 19,000, with revenues expected to decline further.

Positive

• Full year vehicle deliveries increased by 23.0% to 120,757.
• Total revenues for 2022 rose 28.0% to RMB26.86 billion (US$3.89 billion).
• Revenues from services increased by 113.0% year-over-year.

Negative

• Q4 revenues decreased by 39.9% year-over-year to RMB5.14 billion.
• Vehicle deliveries in Q4 dropped 46.8% compared to the same period last year.
• Full year net loss increased to RMB9.14 billion, a rise of 87.9% year-over-year.
• Projected Q1 2023 deliveries are expected to decrease by approximately 45.0% to 47.9%.

• Cash and cash equivalents, restricted cash, short-term investments and time deposits were RMB38.25 billion (US$5.55 billion) as of December 31, 2022
• Quarterly total revenues were RMB5.14 billion, a 39.9% decrease year-over-year
• Quarterly vehicle deliveries were 22,204, a 46.8% decrease year-over-year
• Quarterly gross margin was 8.7%, a decrease of 3.3 percentage points year-over-year
• Full year vehicle deliveries reached 120,757, a 23.0% increase year-over-year
• Full year revenues reached RMB26.86 billion
• Full year gross margin was 11.5%, a decrease of 1 percentage point year-over-year

GUANGZHOU, China--(BUSINESS WIRE)-- XPeng Inc. (“XPENG” or the “Company,” NYSE: XPEV and HKEX: 9868), a leading Chinese smart electric vehicle (“Smart EV”) company, today announced its unaudited financial results for the three months and fiscal year ended December 31, 2022.

Operational and Financial Highlights for the Three Months Ended December 31, 2022

		2022Q4		2022Q3		2022Q2		2022Q1		2021Q4		2021Q3
Total deliveries		22,204		29,570		34,422		34,561		41,751		25,666

• Total deliveries of vehicles were 22,204 in the fourth quarter of 2022, representing a decrease of 46.8% from 41,751 in the corresponding period of 2021.
• Deliveries of the Flagship G9 SUVs were 6,189 in the fourth quarter of 2022.
• XPENG’s physical sales network continued expansion with a total of 420 stores, covering 143 cities as of December 31, 2022.
• XPENG self-operated charging station network further expanded to 1,014 stations, including 808 XPENG self-operated supercharging stations and 206 destination charging stations as of December 31, 2022.
• Total revenues were RMB5.14 billion (US$0.75 billion) for the fourth quarter of 2022, representing a decrease of 39.9% from the same period of 2021, and a decrease of 24.7% from the third quarter of 2022.
• Revenues from vehicle sales were RMB4.66 billion (US$0.68 billion) for the fourth quarter of 2022, representing a decrease of 43.1% from the same period of 2021, and a decrease of 25.3% from the third quarter of 2022.
• Gross margin was 8.7% for the fourth quarter of 2022, compared with 12.0% for the same period of 2021 and 13.5% for the third quarter of 2022.
• Vehicle margin, which is gross profit of vehicle sales as a percentage of vehicle sales revenue, was 5.7% for the fourth quarter of 2022, compared with 10.9% for the same period of 2021 and 11.6% for the third quarter of 2022.
• Net loss was RMB2.36 billion (US$0.34 billion) for the fourth quarter of 2022, compared with RMB1.29 billion for the same period of 2021 and RMB2.38 billion for the third quarter of 2022. Excluding share-based compensation expenses, non-GAAP net loss was RMB2.21 billion (US$0.32 billion) in the fourth quarter of 2022, compared with RMB1.20 billion for the same period of 2021 and RMB2.22 billion for the third quarter of 2022.
• Net loss attributable to ordinary shareholders of XPENG was RMB2.36 billion (US$0.34 billion) for the fourth quarter of 2022, compared with RMB1.29 billion for the same period of 2021 and RMB2.38 billion in the third quarter of 2022. Excluding share-based compensation expenses, non-GAAP net loss attributable to ordinary shareholders of XPENG was RMB2.21 billion (US$0.32 billion) for the fourth quarter of 2022, compared with RMB1.20 billion for the same period of 2021 and RMB2.22 billion for the third quarter of 2022.
• Basic and diluted net loss per American depositary share (ADS) were both RMB2.74 (US$0.40) and basic and diluted net loss per ordinary share were both RMB1.37 (US$0.20) for the fourth quarter of 2022.
• Non-GAAP basic and diluted net loss per ADS were both RMB2.57 (US$0.37) and non- GAAP basic and diluted net loss per ordinary share were both RMB1.29 (US$0.19) for the fourth quarter of 2022. Each ADS represents two Class A ordinary shares.
• Cash and cash equivalents, restricted cash, short-term investments and time deposits were RMB38.25 billion (US$5.55 billion) as of December 31, 2022, compared with RMB43.54 billion as of December 31, 2021 and RMB40.12 billion as of September 30, 2022. Time deposits include short-term deposits, current portion and non-current portion of long-term deposits.

Key Financial Results
(in RMB billions, except for percentage)
	For the Three Months Ended									% Changei
	December 31,			September 30,			December 31,
	2021			2022			2022			YoY			QoQ
Vehicle sales	8.19			6.24			4.66			-43.1	%		-25.3	%
Vehicle margin	10.9	%		11.6	%		5.7	%		-5.2pts			-5.9pts
Total revenues	8.56			6.82			5.14			-39.9	%		-24.7	%
Gross profit	1.02			0.92			0.45			-56.5	%		-51.8	%
Gross margin	12.0	%		13.5	%		8.7	%		-3.3pts			-4.8pts
Net loss	1.29			2.38			2.36			83.4	%		-0.6	%
Non-GAAP net loss	1.20			2.22			2.21			84.6	%		-0.5	%
Net loss attributable to    ordinary shareholders	1.29			2.38			2.36			83.4	%		-0.6	%
Non-GAAP net loss    attributable to ordinary    shareholders	1.20			2.22			2.21			84.6	%		-0.5	%
Comprehensive loss    attributable to ordinary    shareholders	1.86			0.69			2.68			44.4	%		288.3	%

ⁱ Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented

Operational and Financial Highlights for the Fiscal Year Ended December 31, 2022

• Total deliveries of vehicles were 120,757 in 2022, representing an increase of 23.0% from 98,155 in 2021.
• Total revenues were RMB26.86 billion (US$3.89 billion) for the fiscal year of 2022, representing an increase of 28.0% from RMB20.99 billion for the prior year.
• Revenues from vehicle sales were RMB24.84 billion (US$3.60 billion) for the fiscal year of 2022, representing an increase of 23.9% from RMB20.04 billion for the prior year.
• Gross margin was 11.5% for the fiscal year of 2022, compared with 12.5% for the prior year.
• Vehicle margin, which is gross profit of vehicle sales as a percentage of vehicle sales revenue, was 9.4% for the fiscal year of 2022, compared with 11.5% for the prior year.
• Net loss was RMB9.14 billion (US$1.33 billion) for the fiscal year of 2022, compared with RMB4.86 billion for the prior year. Excluding share-based compensation expenses, non-GAAP net loss was RMB8.43 billion (US$1.22 billion) for the fiscal year of 2022, compared with RMB4.48 billion for the prior year.
• Net loss attributable to ordinary shareholders of XPENG was RMB9.14 billion (US$1.33 billion) for the fiscal year of 2022, compared with RMB4.86 billion for the prior year. Excluding share-based compensation expenses, non-GAAP net loss attributable to ordinary shareholders of XPENG was RMB8.43 billion (US$1.22 billion) for the fiscal year of 2022, compared with RMB4.48 billion for the prior year.
• Basic and diluted net loss per ADS were both RMB10.67 (US$1.55) for fiscal year 2022, compared with RMB5.92 for the prior year. Non-GAAP basic and diluted net loss per ADS were both RMB9.84 (US$1.43) for fiscal year 2022, compared with RMB5.46 for the prior year.

Key Financial Results
(in RMB billions, except for percentage)
	For the Fiscal Year Ended						% Changei
	December 31,			December 31,
	2021			2022			YoY
Vehicle sales	20.04			24.84			23.9	%
Vehicle margin	11.5	%		9.4	%		-2.1pts
Total revenues	20.99			26.86			28.0	%
Gross profit	2.62			3.09			17.8	%
Gross margin	12.5	%		11.5	%		-1.0pts
Net loss	4.86			9.14			87.9	%
Non-GAAP net loss	4.48			8.43			88.0	%
Net loss attributable to ordinary    shareholders	4.86			9.14			87.9	%
Non-GAAP net loss attributable to    ordinary shareholders	4.48			8.43			88.0	%
Comprehensive loss attributable to    ordinary shareholders	5.78			5.95			2.9	%

i Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented

Management Commentary

“We have comprehensively reviewed our strategy and took decisive actions to execute our organisational restructuring and strengthen our capabilities where necessary,” said Mr. He Xiaopeng, Chairman and CEO of XPENG. “From 2023 to 2027, the industry will move from a phase of rapid EV penetration to an era of accelerated disruption by smart technologies, and we are confident that we will further strengthen our leadership in smart EV technologies.”

“With the optimization of our product portfolio and the significant improvement of our marketing capabilities, we will resume growth in our sales and market share,” said Dr. Hongdi Brian Gu, Honorary Vice Chairman and Co-President of XPENG. “In the meantime, we will improve operational efficiency across our business processes and continue to reduce costs.”

Recent Developments

Deliveries in January and February 2023

• Total deliveries were 5,218 vehicles in January 2023.
• Total deliveries were 6,010 vehicles in February 2023.
• As of February 28, 2023, year-to-date total deliveries were 11,228 vehicles.

Appointment of President

Ms. Fengying Wang (“Ms. Wang”) has been appointed as the president of the Company with effect from January 30, 2023. Prior to joining the Company, Ms. Wang served various leadership positions at Great Wall Motor Company Limited (HKEX stock code: 2333 and SSE stock code: 601633) from 1991 to 2022, including but not limited to the Vice Chairman and the General Manager.

Launch of The New P7i Sports Sedan

In March 2023, the Company officially launched and kicked off deliveries of the P7i sports sedan for the Chinese market. The P7i is the new mid-cycle facelift version of the P7, with comprehensive upgrades in driver assistance, intelligent cockpit, performance and charging efficiency.

Unaudited Financial Results for the Three Months Ended December 31, 2022

Total revenues were RMB5.14 billion (US$0.75 billion) for the fourth quarter of 2022, representing a decrease of 39.9% from RMB8.56 billion for the same period of 2021 and a decrease of 24.7% from RMB6.82 billion for the third quarter of 2022.

Revenues from vehicle sales were RMB4.66 billion (US$0.68 billion) for the fourth quarter of 2022, representing a decrease of 43.1% from RMB8.19 billion for the same period of 2021 and a decrease of 25.3% from RMB6.24 billion for the third quarter of 2022. The year-over-year decrease was mainly attributable to lower vehicle deliveries for the G3i and P7, while the quarter-over-quarter decrease was mainly due to lower vehicle deliveries for the P5 and P7 with partial offset by the newly launched G9.

Revenues from services and others were RMB0.48 billion (US$0.07 billion) for the fourth quarter of 2022, representing an increase of 29.9% from RMB0.37 billion for the same period of 2021 and a decrease of 17.7% from RMB0.58 billion for the third quarter of 2022. The year-over-year increase was mainly attributable to more services, parts and accessory sales in line with higher accumulated vehicle sales, while the quarter-over-quarter decrease was mainly due to lower parts and services sales associated with Covid-19 pandemic impact in the fourth quarter of 2022.

Cost of sales was RMB4.70 billion (US$0.68 billion) for the fourth quarter of 2022, representing a decrease of 37.7% from RMB7.53 billion for the same period of 2021 and a decrease of 20.4% from RMB5.90 billion for the third quarter of 2022. The year-over-year and quarter-over-quarter decreases were mainly in line with vehicle deliveries as described above.

Gross margin was 8.7% for the fourth quarter of 2022, compared with 12.0% and 13.5% for the fourth quarter of 2021 and the third quarter of 2022, respectively.

Vehicle margin was 5.7% for the fourth quarter of 2022, compared with 10.9% for the same period of 2021 and 11.6% for the third quarter of 2022. The year-over-year and quarter-over-quarter decreases were explained by increased sales promotions.

Research and development expenses were RMB1.23 billion (US$0.18 billion) for the fourth quarter of 2022, representing a decrease of 15.3% from RMB1.45 billion for the same period of 2021 and a decrease of 17.9% from RMB1.50 billion for the third quarter of 2022. The year-over-year and quarter-over-quarter decreases were mainly in line with timing and progress of new vehicle programs.

Selling, general and administrative expenses were RMB1.76 billion (US$0.25 billion) for the fourth quarter of 2022, representing a decrease of 12.9% from RMB2.02 billion for the same period of 2021 and an increase of 8.0% from RMB1.63 billion for the third quarter of 2022. The year-over-year decrease was mainly due to the decrease of commission to the franchised stores associated with lower vehicle deliveries. The quarter-over-quarter increase was mainly attributable to the higher marketing, promotional and advertising expenses to support vehicle sales.

Loss from operations was RMB2.52 billion (US$0.36 billion) for the fourth quarter of 2022, compared with RMB2.43 billion for the same period of 2021 and RMB2.18 billion for the third quarter of 2022.

Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB2.37 billion (US$0.34 billion) for the fourth quarter of 2022, compared with RMB2.34 billion for the same period of 2021 and RMB2.02 billion for the third quarter of 2022.

Net loss was RMB2.36 billion (US$0.34 billion) for the fourth quarter of 2022, compared with RMB1.29 billion for the same period of 2021 and RMB2.38 billion for the third quarter of 2022.

Non-GAAP net loss, which excludes share-based compensation expenses, was RMB2.21 billion (US$0.32 billion) for the fourth quarter of 2022, compared with RMB1.20 billion for the same period of 2021 and RMB2.22 billion for the third quarter of 2022.

Net loss attributable to ordinary shareholders of XPENG was RMB2.36 billion (US$0.34 billion) for the fourth quarter of 2022, compared with RMB1.29 billion for the same period of 2021 and RMB2.38 billion for the third quarter of 2022.

Non-GAAP net loss attributable to ordinary shareholders of XPENG, which excludes share-based compensation expenses, was RMB2.21 billion (US$0.32 billion) for the fourth quarter of 2022, compared with RMB1.20 billion for the same period of 2021 and RMB2.22 billion for the third quarter of 2022.

Basic and diluted net loss per ADS were both RMB2.74 (US$0.40) for the fourth quarter of 2022, compared with RMB1.51 for the fourth quarter of 2021 and RMB2.77 for the third quarter of 2022.

Non-GAAP basic and diluted net loss per ADS were both RMB2.57 (US$0.37) for the fourth quarter of 2022, compared with RMB1.41 for the fourth quarter of 2021 and RMB2.59 for the third quarter of 2022.

Balance Sheets

As of December 31, 2022, the Company had cash and cash equivalents, restricted cash, short-term investments and time deposits of RMB38.25 billion (US$5.55 billion), compared with RMB43.54 billion as of December 31, 2021 and RMB40.12 billion as of September 30, 2022.

Unaudited Financial Results for the Fiscal Year Ended December 31, 2022

Total revenues were RMB26.86 billion (US$3.89 billion) for the fiscal year of 2022, representing an increase of 28.0% from RMB20.99 billion for the prior year.

Revenues from vehicle sales were RMB24.84 billion (US$3.60 billion) for fiscal year 2022, representing an increase of 23.9% from RMB20.04 billion for the prior year. The increase was mainly attributable to higher vehicle deliveries.

Revenues from services and others were RMB2.02 billion (US$0.29 billion) for fiscal year 2022, representing an increase of 113.0% from RMB0.95 billion for the prior year. The increase was mainly attributable to more services, parts and accessory sales in line with higher accumulated vehicle sales.

Cost of sales was RMB23.77 billion (US$3.45 billion) for fiscal year 2022, representing an increase of 29.4% from RMB18.37 billion for the prior year. The increase was mainly in line with vehicle deliveries as described above.

Gross margin was 11.5% for fiscal year 2022, compared with 12.5% for the prior year.

Vehicle margin was 9.4% for fiscal year 2022, compared with 11.5% for the prior year. The decrease was primarily due to increased sales discount and increases in material cost.

Research and development expenses were RMB5.21 billion (US$0.76 billion) for fiscal year 2022, representing an increase of 26.8% from RMB4.11 billion for the prior year. The increase was primarily due to higher employee compensation as a result of more research and development staff and higher expenses relating to the development of new vehicle models to support future growth.

Selling, general and administrative expenses were RMB6.69 billion (US$0.97 billion) for fiscal year 2022, representing an increase of 26.1% from RMB5.31 billion for the prior year. The increase was mainly due to the expansion of the Company’s sales network and associated personnel cost.

Loss from operations was RMB8.71 billion (US$1.26 billion) for fiscal year 2022, compared with RMB6.58 billion for the prior year.

Non-GAAP loss from operations, which excludes share-based compensation expenses, was RMB8.00 billion (US$1.16 billion) for fiscal year 2022, compared with RMB6.20 billion for the prior year.

Impact of foreign currency revaluation reflected the following results:

(i) Exchange loss from foreign currency transactions was RMB1.46 billion (US$0.21 billion) for fiscal year of 2022, primarily reflecting the revaluation impact of Renminbi-denominated assets held in U.S. dollar functional currency subsidiaries as a result of Renminbi depreciation against U.S. dollars in 2022.

(ii) Foreign currency translation adjustment was RMB3.19 billion (US$0.46 billion) gain for fiscal year 2022, primarily resulting from the appreciation of U.S. dollar-denominated assets. Such revaluation was included in other comprehensive (loss) income, but not net loss.

Net loss was RMB9.14 billion (US$1.33 billion) for fiscal year 2022, compared with RMB4.86 billion for the prior year.

Non-GAAP net loss, which excludes share-based compensation expenses, was RMB8.43 billion (US$1.22 billion) for fiscal year 2022, compared with RMB4.48 billion for the prior year.

Net loss attributable to ordinary shareholders of XPENG was RMB9.14 billion (US$1.33 billion) for fiscal year 2022, compared with RMB4.86 billion for the prior year.

Non-GAAP net loss attributable to ordinary shareholders of XPENG, which excludes share- based compensation expenses, was RMB8.43 billion (US$1.22 billion) for fiscal year 2022, compared with RMB4.48 billion for the prior year.

Comprehensive loss attributable to ordinary shareholders of XPENG was RMB5.95 billion (US$0.86 billion) for fiscal year 2022, compared with RMB5.78 billion for the prior year.

Basic and diluted net loss per ADS were both RMB10.67 (US$1.55) for fiscal year 2022, compared with RMB5.92 for the prior year.

Non-GAAP basic and diluted net loss per ADS were both RMB9.84 (US$1.43) for fiscal year 2022, compared with RMB5.46 for the prior year.

Business Outlook

For the first quarter of 2023, the Company expects:

• Deliveries of vehicles to be between 18,000 and 19,000, representing a year over-year decrease of approximately 45.0% to 47.9%.
• Total revenues to be between RMB4.0 billion and RMB4.2 billion, representing a year-over-year decrease of approximately 43.7% to 46.3%.

The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, and customer demand, which are all subject to change.

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on March 17, 2023 (8:00 PM Beijing/Hong Kong time on March 17, 2023).

For participants who wish to join the call by phone, please access the link provided below to complete the pre-registration process and dial in 5 minutes prior to the scheduled call start time. Upon registration, each participant will receive dial-in details to join the conference call.

Event Title:		XPeng Inc. Fourth Quarter 2022 Earnings Conference Call
Pre-registration link:		https://s1.c-conf.com/diamondpass/10028722-ty785x.html

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.xiaopeng.com.

A replay of the conference call will be accessible approximately two hours after the conclusion of the call until March 24, 2023, by dialing the following telephone numbers:

United States:		+1-855-883-1031
International:		+61-7-3107-6325
Hong Kong, China:		800-930-639
Mainland China:		400-120-9216
Replay Access Code:		10028722

About XPeng Inc.

XPeng Inc. (“XPENG”) is a leading Chinese Smart EV company that designs, develops, manufactures, and markets smart EVs that appeal to the large and growing base of technology- savvy middle-class consumers. Its mission is to drive Smart EV transformation with technology and data, shaping the mobility experience of the future. In order to optimize its customers’ mobility experience, XPENG develops in-house its full-stack advanced driver-assistance system technology and in-car intelligent operating system, as well as core vehicle systems including powertrain and the electrical/electronic architecture. XPENG is headquartered in Guangzhou, China, with main offices in Beijing, Shanghai, Silicon Valley, San Diego and Amsterdam. The Company’s Smart EVs are mainly manufactured at its plants in Zhaoqing and Guangzhou, Guangdong province. For more information, please visit https://heyXPENG.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic loss per weighted average number of ordinary shares and non-GAAP basic loss per ADS, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non- GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and non-GAAP Results” set forth in this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.8972 to US$1.00, the exchange rate on December 30, 2022, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about XPENG’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: XPENG’s goal and strategies; XPENG’s expansion plans; XPENG’s future business development, financial condition and results of operations; the trends in, and size of, China’s EV market; XPENG’s expectations regarding demand for, and market acceptance of, its products and services; XPENG’s expectations regarding its relationships with customers, contract manufacturer, suppliers, third- party service providers, strategic partners and other stakeholders; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in XPENG’s filings with the United States Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and XPENG does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

XPENG INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
	As of December 31,
	2021 RMB		2022 RMB		2022 US$
ASSETS
Current assets
Cash and cash equivalents	11,024,906		14,607,774		2,117,928
Restricted cash	609,975		106,272		15,408
Short-term deposits	25,858,007		14,921,688		2,163,441
Short-term investments	2,833,763		1,262,129		182,992
Long-term deposits, current portion	-		427,466		61,977
Accounts and notes receivable, net	2,673,494		3,872,846		561,510
Installment payment receivables, net,    current portion	887,202		1,294,665		187,709
Inventory	2,661,921		4,521,373		655,537
Amounts due from related parties	32,785		47,124		6,832
Prepayments and other current assets	2,248,683		2,466,084		357,547
Total current assets	48,830,736		43,527,421		6,310,881
Non-current assets
Long-term deposits	3,217,266		6,926,450		1,004,241
Property, plant and equipment, net	5,424,776		10,606,745		1,537,833
Right-of-use assets, net	1,561,175		1,954,618		283,393
Intangible assets, net	878,724		1,042,972		151,217
Land use rights, net	595,471		2,747,854		398,401
Installment payment receivables, net	1,863,492		2,188,643		317,323
Long-term investments	1,549,176		2,295,032		332,748
Other non-current assets	1,730,486		201,271		29,182
Total non-current assets	16,820,566		27,963,585		4,054,338
Total assets	65,651,302		71,491,006		10,365,219

XPENG INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
	As of December 31,
	2021 RMB			2022 RMB			2022 US$
LIABILITIES Current liabilities
Short-term borrowings	-			2,419,210			350,752
Accounts and notes payable	12,362,186			14,222,856			2,062,120
Amounts due to related parties	24,919			91,111			13,210
Operating lease liabilities, current portion	373,488			490,811			71,161
Finance lease liabilities, current portion	-			128,279			18,599
Deferred revenue, current portion	418,227			389,243			56,435
Long-term borrowings, current portion	-			761,859			110,459
Accruals and other liabilities	4,811,107			5,583,829			809,579
Income taxes payable	22,737			27,655			4,010
Total current liabilities	18,012,664			24,114,853			3,496,325
Non-current liabilities
Long-term borrowings	1,675,106			4,613,057			668,830
Operating lease liabilities	1,189,754			1,854,576			268,888
Finance lease liabilities	-			797,743			115,662
Deferred revenue	479,061			694,006			100,621
Other non-current liabilities	2,148,139			2,506,106			363,351
Total non-current liabilities	5,492,060			10,465,488			1,517,352
Total liabilities	23,504,724			34,580,341			5,013,677
SHAREHOLDERS’ EQUITY
Class A Ordinary shares	87			92			13
Class B Ordinary shares	25			21			3
Additional paid-in capital	59,980,534			60,691,019			8,799,371
Statutory reserves	6,047			6,425			932
Accumulated deficit	(16,191,566	)		(25,330,916	)		(3,672,639	)
Accumulated other comprehensive    (loss) income	(1,648,549	)		1,544,024			223,862
Total shareholders’ equity	42,146,578			36,910,665			5,351,542
Total liabilities and shareholders’ equity	65,651,302			71,491,006			10,365,219

XPENG INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
	Three Months Ended
	December 31, 2021			September 30, 2022			December 31, 2022			December 31, 2022
	RMB			RMB			RMB			US$
Revenues
Vehicle sales	8,187,181			6,241,143			4,661,182			675,808
Services and others	368,827			582,344			479,167			69,473
Total revenues	8,556,008			6,823,487			5,140,349			745,281
Cost of sales
Vehicle sales	(7,296,930	)		(5,514,695	)		(4,397,201	)		(637,534	)
Services and others	(235,768	)		(385,554	)		(298,084	)		(43,218	)
Total cost of sales	(7,532,698	)		(5,900,249	)		(4,695,285	)		(680,752	)
Gross profit	1,023,310			923,238			445,064			64,529
Operating expenses
Research and development    expenses	(1,451,389	)		(1,498,550	)		(1,230,049	)		(178,340	)
Selling, general and    administrative expenses	(2,015,425	)		(1,626,343	)		(1,755,815	)		(254,569	)
Total operating expenses	(3,466,814	)		(3,124,893	)		(2,985,864	)		(432,909	)
Other income, net	13,837			24,824			23,357			3,386
Loss from operations	(2,429,667	)		(2,176,831	)		(2,517,443	)		(364,994	)
Interest income	264,015			289,954			273,367			39,634
Interest expense	(13,841	)		(38,968	)		(51,079	)		(7,406	)
Fair value (loss) gain on derivative    assets or derivative liabilities	(26,910	)		(8,003	)		1,398			203
Fair value gain (loss) on long-term    investments	591,506			129,240			(102,798	)		(14,904	)
Exchange gain (loss) from foreign    currency transactions	269,630			(550,775	)		(17,454	)		(2,531	)
Other non-operating income    (loss), net	83,789			(2,600	)		37,761			5,475
Loss before income tax (expenses)    benefit and share of results of    equity method investees	(1,261,478	)		(2,357,983	)		(2,376,248	)		(344,523	)
Income tax (expenses) benefit	(25,687	)		(21,017	)		10,445			1,514
Share of results of equity method    investees	-			2,852			4,628			671
Net loss	(1,287,165	)		(2,376,148	)		(2,361,175	)		(342,338	)
Net loss attributable to ordinary    shareholders of XPeng Inc.	(1,287,165	)		(2,376,148	)		(2,361,175	)		(342,338	)

XPENG INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED)
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
	Three Months Ended
	December 31, 2021			September 30, 2022			December 31, 2022			December 31, 2022
	RMB			RMB			RMB			US$
Net loss	(1,287,165	)		(2,376,148	)		(2,361,175	)		(342,338	)
Other comprehensive (loss)    income
Foreign currency translation    adjustment, net of nil tax	(568,659	)		1,686,156			(318,072	)		(46,116	)
Total comprehensive loss    attributable to XPeng Inc.	(1,855,824	)		(689,992	)		(2,679,247	)		(388,454	)
Comprehensive loss    attributable to ordinary    shareholders of XPeng Inc.	(1,855,824	)		(689,992	)		(2,679,247	)		(388,454	)
Weighted average number of    ordinary shares used in    computing net loss per    ordinary share
Basic and diluted	1,700,956,007			1,718,162,864			1,720,448,811			1,720,448,811
Net loss per ordinary share    attributable to ordinary    shareholders
Basic and diluted	(0.76	)		(1.38	)		(1.37	)		(0.20	)
Weighted average number of    ADS used in computing net    loss per share
Basic and diluted	850,478,004			859,081,432			860,224,405			860,224,405
Net loss per ADS attributable    to ordinary shareholders
Basic and diluted	(1.51	)		(2.77	)		(2.74	)		(0.40	)

XPENG INC.
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
	Three Months Ended
	December 31, 2021			September 30, 2022			December 31, 2022			December 31, 2022
	RMB			RMB			RMB			US$
Loss from operations	(2,429,667	)		(2,176,831	)		(2,517,443	)		(364,994	)
Share-based compensation    expenses	88,846			152,695			148,783			21,572
Non-GAAP loss from operations	(2,340,821	)		(2,024,136	)		(2,368,660	)		(343,422	)
Net loss	(1,287,165	)		(2,376,148	)		(2,361,175	)		(342,338	)
Share-based compensation    expenses	88,846			152,695			148,783			21,572
Non-GAAP net loss	(1,198,319	)		(2,223,453	)		(2,212,392	)		(320,766	)
Net loss attributable to ordinary    shareholders	(1,287,165	)		(2,376,148	)		(2,361,175	)		(342,338	)
Share-based compensation    expenses	88,846			152,695			148,783			21,572
Non-GAAP net loss attributable    to ordinary shareholders of    XPeng Inc.	(1,198,319	)		(2,223,453	)		(2,212,392	)		(320,766	)
Weighted average number of    ordinary shares used in    calculating Non-GAAP net loss    per share
Basic and diluted	1,700,956,007			1,718,162,864			1,720,448,811			1,720,448,811
Non-GAAP net loss per ordinary    share
Basic and diluted	(0.70	)		(1.29	)		(1.29	)		(0.19	)
Weighted average number of    ADS used in calculating Non-    GAAP net loss per share
Basic and diluted	850,478,004			859,081,432			860,224,405			860,224,405
Non-GAAP net loss per ADS
Basic and diluted	(1.41	)		(2.59	)		(2.57	)		(0.37	)

XPENG INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
	For the Year Ended December 31
	2021			2022			2022
	RMB			RMB			US$
Revenues
Vehicle sales	20,041,955			24,839,637			3,601,409
Services and others	946,176			2,015,482			292,217
Total revenues	20,988,131			26,855,119			3,893,626
Cost of sales
Vehicle sales	(17,733,036	)		(22,493,122	)		(3,261,196	)
Services and others	(632,540	)		(1,273,606	)		(184,656	)
Total cost of sales	(18,365,576	)		(23,766,728	)		(3,445,852	)
Gross profit	2,622,555			3,088,391			447,774
Operating expenses
Research and development expenses	(4,114,267	)		(5,214,836	)		(756,080	)
Selling, general and administrative    expenses	(5,305,433	)		(6,688,246	)		(969,705	)
Total operating expenses	(9,419,700	)		(11,903,082	)		(1,725,785	)
Other income, net	217,740			109,168			15,828
Loss from operations	(6,579,405	)		(8,705,523	)		(1,262,183	)
Interest income	743,034			1,058,771			153,507
Interest expense	(55,336	)		(132,192	)		(19,166	)
Fair value gain on derivative assets or    derivative liabilities	79,262			59,357			8,606
Fair value gain on long-term    investments	591,506			25,062			3,634
Exchange gain (loss) from foreign    currency transactions	313,580			(1,460,151	)		(211,702	)
Other non-operating income, net	70,253			36,318			5,266
Loss before income tax expenses and    share of results of equity method    investees	(4,837,106	)		(9,118,358	)		(1,322,038	)
Income tax expenses	(25,990	)		(24,731	)		(3,586	)
Share of results of equity method    investees	-			4,117			597
Net loss	(4,863,096	)		(9,138,972	)		(1,325,027	)
Net loss attributable to ordinary    shareholders of XPeng Inc.	(4,863,096	)		(9,138,972	)		(1,325,027	)

XPENG INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED)
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
	For the Year Ended December 31
	2021			2022			2022
	RMB			RMB			US$
Net loss	(4,863,096	)		(9,138,972	)		(1,325,027	)
Other comprehensive (loss) income
Foreign currency translation    adjustment, net of nil tax	(918,168	)		3,192,573			462,880
Total comprehensive loss    attributable to XPeng Inc.	(5,781,264	)		(5,946,399	)		(862,147	)
Comprehensive loss attributable to    ordinary shareholders of XPeng    Inc.	(5,781,264	)		(5,946,399	)		(862,147	)
Weighted average number of    ordinary shares used in    computing net loss per ordinary    share
Basic and diluted	1,642,906,400			1,712,533,564			1,712,533,564
Net loss per ordinary share    attributable to ordinary    shareholders
Basic and diluted	(2.96	)		(5.34	)		(0.77	)
Weighted average number of ADS    used in computing net loss per    share
Basic and diluted	821,453,200			856,266,782			856,266,782
Net loss per ADS attributable to    ordinary shareholders
Basic and diluted	(5.92	)		(10.67	)		(1.55	)

XPENG INC.
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
	For the Year Ended December 31
	2021			2022			2022
	RMB			RMB			US$
Loss from operations	(6,579,405)			(8,705,523)			(1,262,183)
Share-based compensation expenses	379,948			710,486			103,011
Non-GAAP loss from operations	(6,199,457)			(7,995,037)			(1,159,172)
Net loss	(4,863,096)			(9,138,972)			(1,325,027)
Share-based compensation expenses	379,948			710,486			103,011
Non-GAAP net loss	(4,483,148)			(8,428,486)			(1,222,016)
Net loss attributable to ordinary    shareholders	(4,863,096)			(9,138,972)			(1,325,027)
Share-based compensation expenses	379,948			710,486			103,011
Non-GAAP net loss attributable to    ordinary shareholders of XPeng    Inc.	(4,483,148)			(8,428,486)			(1,222,016)
Weighted average number of    ordinary shares used in    calculating Non-GAAP net loss    per share
Basic and diluted	1,642,906,400			1,712,533,564			1,712,533,564
Non-GAAP net loss per ordinary    share
Basic and diluted	(2.73)			(4.92)			(0.71)
Weighted average number of ADS    used in calculating Non-GAAP net    loss per share
Basic and diluted	821,453,200			856,266,782			856,266,782
Non-GAAP net loss per ADS
Basic and diluted	(5.46)			(9.84)			(1.43)

 

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IR Department XPeng Inc.

E-mail: ir@xiaopeng.com

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Source: XPeng Inc.

FAQ

What were XPeng's quarterly and yearly revenues for 2022?

XPeng's Q4 2022 revenues were RMB5.14 billion (US$0.75 billion), and total revenues for the fiscal year reached RMB26.86 billion (US$3.89 billion).

How many vehicles did XPeng deliver in Q4 2022?

XPeng delivered 22,204 vehicles in Q4 2022, which is a 46.8% decrease year-over-year.

What is XPeng's net loss for the fiscal year 2022?

XPeng reported a net loss of RMB9.14 billion (US$1.33 billion) for the fiscal year 2022.

What are XPeng's delivery projections for Q1 2023?

XPeng expects vehicle deliveries in Q1 2023 to be between 18,000 and 19,000, a decrease of approximately 45.0% to 47.9% year-over-year.

What is the gross margin for XPeng in Q4 2022?

The gross margin for XPeng in Q4 2022 was 8.7%, down from 12.0% in the same period last year.