Analytical results | “wei small principle” of 2021: wei to lead revenue Xiao peng won pin cup closest to the ideal profits

2022-06-13 0 By

With the release of xiaopeng Motor’s financial results on March 28, Wei Xiaoli submitted all 2021 financial results.The cumulative delivery of more than 90,000 vehicles, the revenue doubled year-on-year growth, new forces in 2021 have stepped from 0-1 survival line, to the profit goal.Note: The year-on-year change in gross margin of automobile business is percentage plus or minus. In 2021, NIO continues to lead the revenue with 36.14 billion yuan. In 2021, when there is no new model delivery, the growth rate of R&D and sales expenses of NiO is relatively ideal and xiaopeng is also relatively slow, and the net loss narrowed by 24.3% to 4.02 billion yuan.Xiaopeng sold strongly in the second half of the year, especially in the fourth quarter, and topped the list with 98,200 units.However, gross margin and automotive business gross margin is the lowest among the three;Research and development expenses and sales expenses increased significantly year-on-year, and the net loss continued to expand 78% to 4.863 billion yuan.The goal is to deliver 90,000 units by 2021.The dream, known as “stingy”, achieved a 4.2 percentage point increase in gross profit while its r&d expenses nearly tripled and its selling and general administrative expenses more than tripled, but its net loss expanded 111.9 percent year-on-year to 322 million yuan.Where is the new Power’s money going, with sales growing so fast, is the cash burn period coming to an end?Where does the future go?One of the biggest questions in the market as earnings are released is “is it profitable this year?”Tesla, however, posted its first full-year profit in 2020 in 17 years.New energy vehicles will be in the input stage in a short period of time, which is also a well-known industry consensus.For the profit of the time node, ideal and Xiaopeng did not give a clear time, Nio’s Bin Li was clear in the earnings call, “the Q4 in 2023 as the quarterly breakeven target, hope to be able to achieve profit in 2024.”To achieve full profitability in less than two years is not a low goal.Nio still has a net loss of more than $4 billion this year.Based on the data of the last four years, NIO just achieved positive gross profit in 2020.Li Bin said, “last year we basically implemented the company’s financial strategy of gross profit covering selling expenses and administrative expenses, the implementation is still good, that is, the loss is mainly due to long-term investment in research and development, this year’s big strategy is still gross profit covering sales and administrative expenses.”In 2021, the gross profit of NIO will be 6.821 billion yuan, and the sales and general management expenses will be 6.878 billion yuan, basically realizing the gross profit covering the sales expenses.From the perspective of cost control, in recent years, both BBA and the domestic independent three, r&d expenses and sales expenses have basically kept increasing year by year.Therefore, niO must increase revenue and gross profit in order to achieve profitability in 2024.Selling cars is still niO’s main source of revenue.Nextev’s sales revenue in 2021 is 33.17 billion yuan, accounting for 91.79% of the total revenue.Revenue from bicycles was $362,800 and gross profit from bicycles was about $72,800.Nio needs to sell 55,000 more units to turn a profit this year.In the final analysis, profit needs to improve sales and expand the market under the premise of cost control.Compared with NiO, which spends a lot on expenses, niO, which is known for its “tight-fisted” concept, also significantly increased its R&D and sales expenses in 2021.In 2021, ideal RESEARCH and development expenses increased 198.8% to 3.29 billion yuan, sales expenses increased 212.1% to 3.49 billion yuan.Although ideal’s year-on-year loss expanded 111.9% to 322 million yuan, but is still the “wei Xiaoli” closest to breaking even manufacturers.”We have reached the ceiling level in the household segment in the price range of 300,000,” Mr Li said.In 2021, only relying on the great success of ideal ONE in the family segment market, Ideal achieved almost the same sales volume as NiO and Xiaopeng, achieving a year-on-year increase of 181.5% to 27.01 billion yuan in revenue.However, the gross profit per bike is 59,400 yuan, lower than NIO.As the only enterprise that has ever made a profit among the new forces, Ideal did not specify the time node of annual profit, but according to the data, its loss scale has been less than niO and Xiaopeng in the same period since 2018.Compared with NIO and Ideo, Xiaopeng’s profitability attracts more attention. In the past two years, Xiaopeng has been more and more labeled as “the more we sell, the more we get”.In 2021, Xiaopeng Xiti new Force topped the market, but its loss further expanded by 78% to 4.863 billion yuan, becoming the enterprise with the largest loss among the new force.In 2021, the average price of xiaopeng automobile is 204,200 yuan, far lower than that of NIO 362,800 yuan and Ideo 288,700 yuan.The relatively low price also squeezed xiaopeng’s profit space, and its gross profit margin was relatively low among the three. Even with a year-on-year growth of 8 percentage points, it was still only 11.5%, lower than niO and Ideo’s gross profit margin of over 20%.Although the revenue and NIO, ideal has a certain gap, but xiaopeng’s investment is not low.In 2021, Xiaopeng’s R&D expenses increased by 138.4% year-on-year to 4.114 billion yuan, accounting for 19.6% of the revenue.During the same period, NIO invested 4.592 billion yuan in R&D, accounting for 12.7% of the revenue, while Ideo invested 3.49 billion yuan in R&D, accounting for 12.9% of the revenue.In terms of selling expenses, Xiaopeng’s selling expenses increased by 81.7% year-on-year to 5.305 billion yuan, accounting for 25.27% of the revenue.Nio’s sales expenses reached 6.878 billion yuan, accounting for 19.03% of the revenue, lower than That of Xiaopeng.Ideal reached $3.49 billion, or 12.92 percent of revenue, after more than tripling sales expenses.But Xiaopeng is not unconcerned with profit.He Xiaopeng said, “Xiaopeng Automobile will adhere to the entrepreneurial spirit and business thinking, and constantly improve operational efficiency. The medium and long-term goal of Xiaopeng Automobile is to increase the company’s overall gross margin to more than 25%, and with the help of scale effect and operating leverage, the expense ratio will continue to decline.”Research and development investment is concentrated in the field of intelligence and electrification. Whether it is niO, Xiaopeng, or the so-called “stingy” ideal, the new force’s investment in RESEARCH and development is generous as always.Both Nio and Xiaopeng started out with a high level of autonomous driving.In 2020, NiO EP9 achieved a record speed of 257 kilometers per hour in a self-driving test in the United States, making it the fastest self-driving car in the world.Xiaopeng XPILOT platform in continuous iteration, has realized adaptive cruise (ACC), automatic parking (APS) and other functions of boarding.However, niO’s promotion of its autonomous driving capabilities has been greatly reduced since the incident.The focus on batteries and platforms is growing.”In the fourth quarter of last year, we started to use 75-degree term-iron lithium batteries. Term-iron lithium batteries are really cheaper than the 70-degree term-iron lithium batteries we used, so this is very helpful for our margin improvement in the fourth quarter,” Said Li.In addition, 2022 is a big year for NiO’s products. The first ET7 based on NIO NT2.0 platform has been delivered on 28th of this month.The MID-size luxury electric sedan ET5 is expected to be delivered in September.The ES7, which is positioned as a medium and large high-end 5-seat SUV, is expected to be released in the second quarter, and deliveries will start in the third quarter.The ET7 electric drive system is developed and manufactured by the whole stack.From software to battery to electric drive, NIO’s research and development not only stays in intelligence, but also pays attention to the three-current system at the core of electric vehicles.Xiao Peng is on the self-driving track all the way ahead.The report said it was excited about the city navigation System (CGNP), which is being developed and rapidly iterated.The ultimate goal of CGNP is to achieve superior safety and optimal user experience in complex urban driving scenarios and will be launched over OTA.In addition to the G9, which will be delivered this year, there will be two products released in 2023.It is expected that XPILOT4.0 will be carried on various xiaopeng products in 2023.”At present, the autonomous driving test has gone more smoothly than we thought, and xiaopeng is expected to complete the transition to driverless cars in 2026,” he said.The idea of a late start in autonomous driving will also make up for the shortfall with a big increase in r&d spending in 2021.In September and December 2021, the voice assistant was upgraded and NOA and AEB functions were pushed through OTA respectively, which initially solved the problem of whether the intelligent driving function existed.From the point of view of the ideal push function, its automatic driving level is not high.Li Xiang said, “Whether NOA or AEB, the main goal is to improve safety throughout the use process.The accident rate is 80 percent lower than that of traditional cars, and will be upgraded to a higher level in the future.”This also shows that the ideal technical goal of automatic driving is not to pursue high order and rapid automatic driving, but to emphasize the safety effect brought by automatic driving.In addition, we will continue to invest in 4C battery and 800V pure level platform in the past two years.Expanding marketing and service network to increase brand touch points As can be seen from the key data in the financial report, wei Xiaoli’s sales expenses are also rising sharply, even more than the research and development expenses.As Li Xiang said, we hope to better convey brand values through the establishment of direct service network, so that users can have a higher brand recognition of the product.In 2021, NEXTEv will build 46 Nextev centers and 341 Nextev Spaces covering 155 cities.Xiaopeng has 357 operation centers covering 129 cities.The target is 206 retail centers in 102 cities.Relatively behind niO and Xiaopeng’s expansion speed.At the same time, the expansion of direct stores is accompanied by the rise of sales staff size.In addition to expanding marketing channels and increasing user touch points, the distribution level of charging and changing facilities is crucial to the user experience of electric vehicles.New businesses that started out as “user oriented” companies are also paying attention to the layout of charging and switching facilities.By the end of last year, NIO had arranged 777 power changing stations, 605 overcharging stations and 3,404 overcharging piles nationwide, and had connected 450,000 + third-party charging piles.According to xiaopeng’s latest data as of January this year, 813 brand supercharging stations have been built, covering 337 prefecture-level cities and above administrative units (including municipalities directly under the Central Government) in mainland China.Ideal as zengcheng type electric vehicle charging demand is relatively not so urgent, mainly according to user demand to choose whether to install charging pile.As of March 25, the latest data, ideal cars have been installed more than 100,000 home charging piles.As high-speed charging stations are full during small holidays and people grab charging piles early in the morning in winter, more efficient charging services can not only greatly optimize user experience, but also become a new source of revenue.In the long run, investments in marketing and service networks will translate into brand equity and even new cash cows.After niO crosses the 0-1 survival line from xiaopeng down to driverless dedicated family, where will Nio go?From the current layout, there are already many differences.Nio tries to open more price ranges: Currently, NiO products basically maintain a price range of more than 300,000 yuan. Li Bin said that he would not sacrifice gross profit to enter the mass market, but adopt a dual brand strategy.At present, NiO is steadily advancing the new brand for the mass market. At present, the core team has been established, the strategic direction has been clear, and the first batch of products have entered the key research and development stage.Xiaopeng is more strengthened technology, intelligent label.In addition to the transition to unmanned driving in 2026, Xiaopeng hutian’s exploration of flying cars and the intelligent machine Ma launched by Xiaopeng before can be seen that Xiaopeng is not limited to the form of “car” and explores more possibilities of intelligent travel products.Ideal focuses on cars for the family market.Li Xiang said he planned to launch products targeted at the family segment in the price range of 200,000 to 500,000 yuan, hoping to achieve Apple’s position in the industry in five to 10 years.In terms of overseas market, Xiaopeng and Nio have chosen Norway to try to open the European market.’In terms of long-term strategy, it’s definitely going global,’ Mr. Li said. ‘But in the short term, we’ll focus on the Chinese market.’In 2021, We have achieved good results as a whole, and the gross profit margin of automobile business reaches or even exceeds BBA level (the gross profit margin of Benz, BMW and Audi in 2021 is 12.7%, 17.6% and 10.7% respectively), which is also far beyond the gross profit margin of domestic first-tier manufacturers.From 100,000 units to larger delivery scale, it is up to Wei Xiaoli to prove whether today’s investment can be translated into tomorrow’s competitive advantage.Analysis of financial results | “NiO Xiao Li” 2021: NiO leads the revenue, Xiaopeng wins the crown of sales ideal most close to profit