New energy vehicle maker XPeng Inc. (XPEV.US; 9868.HK) said on Thursday its revenue fell 17.6% year-on-year to 13 billion yuan ($1.92 billion) in the first quarter, as its revenue from vehicle sales fell by an even larger 23.5% to 11 billion yuan amid weakness in China’s auto market.
The company sold 62,682 vehicles in the three months to March, down 33% from 94,008 in the first quarter of last year, according to its latest quarterly report. It previously reported delivering 31,011 vehicles in April, down 11.5% from 35,045 a year earlier.
Despite the declines, XPeng’s gross margin improved notably, by 5 percentage points, to 20.6% during the first quarter from 15.6% a year earlier, as more of its sales went to foreign markets where prices are generally higher. Its vehicle margin also rose to 12.1% in the first quarter from 10.5% a year earlier.
But the company’s net loss widened notably to 1.78 billion yuan from a 660 million yuan loss a year earlier, partly as a result of a 47% increase in R&D spending on new vehicle development and AI technology.
Xpeng’s Hong Kong-listed shares fell 3.8% on Friday to close at HK$63.85. The stock is down about 20% this year.
By Doug Young
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