XPeng Inc. announced 2020Q3 before the market tonight.Financial report, we think that the overall data is quite, very good.Including higher-than-expected revenue, a positive gross profit margin for the first time, and even deducting one-time gains and losses related to IPO in August, the company's overall loss narrowed in the third quarter. In addition, the management is very optimistic about the 2020Q4 guidelines.

XPeng Inc. 's share price rose sharply before the trading because of the positive results.

1. 2020Q3Comments: revenue exceeded expectations, gross profit margin became positive for the first time!

XPeng Inc. 's recent delivery performance has been quite strong, delivering a total of 8578 vehicles in the third quarter, up 266 per cent from a year earlier. Sales exploded because the core model, the P7, launched large-scale delivery at the end of June.

Driven by production and sales volume, XPeng Inc. achieved revenue of 1.99 billion yuan in the third quarter of 2020, an increase of 342.5 percent over the same period last year, which was higher than the market expectation of 1.9 billion. The net loss of shareholders belonging to common shares was 2.03 billion, and the market was expected to be 804 million, compared with a loss of 980 million in the same period last year.

At first glance, the loss seems to have expanded seriously, but the actual situation is not what it appears on paper..

After deducting one-time gains and losses such as share payments, changes in the fair value of financial liabilities and changes in the redemption value of preferred shares, the net loss of 2020Q3 XPeng Inc. Non-GAAP was 864 million yuan, basically the same as the market expectation of 845 million, compared with a loss of 751 million yuan in the same period last year, only a slight increase.

The shift of gross profit margin is the key bright spot of this financial report.. 2020Q3 XPeng Inc. 's overall gross profit margin is + 4.6 per cent (auto business gross margin + 3.2 per cent), 2019Q3 and 2020Q2 are-10.1 per cent and-2.7 per cent respectively. Management explained that the increase in gross margin was mainly due to a better product mix, lower material costs and higher manufacturing efficiency.

With the production and sales volume and higher price P7 delivery, XPeng Inc. 's profitability has improved steadily:

In terms of costThe R & D expenditure in the third quarter was 635 million, an increase of 46.1% over the same period last year and 98.7% month-on-month; the sales fee was 1.203 billion, + 320.8% from the same period last year, and + 152.3% from the same period last year.The cost during the period increased significantly compared with the same period as the same period.However, the financial report emphasizes that it contains a large number ofIPOTriggered equity compensation costsExcluding this impact, R & D spending will actually decrease compared with the same period last year.

In the financial report, CEOHe Xiaopeng said that he benefited from P7.Delivery grew rapidly and the company achieved strong operating and financial results in the first quarter after going public.. By the end of September 2020, XPeng Inc. had about $20 billion in cash and equivalents plus short-term investment, mainly from C+ round financing and IPO in August this year.

II. 2020Q4Guidelines: delivery 1Ten thousand cars, revenue growth of 244%

For the fourth quarter of 2020, management also gave optimistic guidance:

1) Q4 is expected to deliver 10000 units, an increase of 210.8% over the same period last year

2) the revenue of Q4 is about 2.2 billion yuan, an increase of 243.7% over the same period last year.

At present, XPeng Inc. has mass produced two models, especially the compact SUV G3 and the medium-sized sedan P7, and has plenty of cash on hand, which can be said to be strong and well-fed.

After experiencing a series of soaring stock prices, it is generally believed that there is an inflated emotional premium in the new energy vehicle sector of the United States. If you only look at paper losses, XPeng Inc. and ideal are not worth a valuation of $20 billion.

From the perspective of product performance and operational efficiency, XPeng Inc. is undoubtedly a very excellent enterprise, so the explosive industry (new energy track) + strong players determines that this probability is a good investment opportunity. Even if there is a bubble in the short term, it is believed that as long as it is in the right direction and stretched for a long time, it will certainly be able to reflect its value in the end.

As the first financial report after listing, we think XPeng Inc. has brought surprise and confidence to the market this time: P7The growth rate of revenue is higher than expected, the gross profit margin becomes positive for the first time, and the management is optimistic.. In addition, this quarter due to IPO profit and loss of financial liabilities fair value change (+ 637 million), preferred stock redemption value change (- 877 million) will no longer occur, assuming deducting these two, then 2020Q3 Non-GAAP net loss of about 620 million, showing the same, month-on-month narrowing, perhaps the next financial report market will get a bigger surprise, it is recommended to continue to pay attention to XPeng Inc..