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In the second quarter, vehicle sales are expected to exceed 10,000 gross profit and reach 5%.
May 29,2020 09:56CST
translation
Source:SMM
The gross profit of vehicle sales in the first quarter was minus 7.4%, compared with minus 6% in the previous quarter, which was mainly due to the decrease in the number of vehicles delivered during the epidemic. Li Bin, founder, chairman and CEO of Weilai, said at the earnings conference that the gross profit margin of the whole vehicle in the second quarter is expected to reach 5%, and the gross profit margin of the overall business can exceed 3%.
The content below was translated by Tencent automatically for reference.

SMM Network News: may 28th, Xilai Automobile announced its financial report for the first quarter of 2020.

According to the financial report, the gross profit of vehicle sales was negative 7.4% in the first quarter and minus 6% in the previous quarter, which was mainly due to the decrease in the number of vehicles delivered during the epidemic. Li Bin, founder, chairman and CEO of Weilai, said at the earnings conference that the gross profit margin of the whole vehicle in the second quarter is expected to reach 5%, and the gross profit margin of the overall business can exceed 3%.

"with the jump in quarterly delivery, the decline in the purchase price of battery packs and other materials, the improvement in manufacturing efficiency and the steady rise in average sales prices, our gross profit margin will improve significantly in the second quarter," Li Bin said. "

This means that Li Bin's vow to become a regular gross profit in the second quarter is becoming clearer and clearer. At the same time, Weilai will sell more cars in the second quarter. Can Weilai do it?

The sales volume may exceed 10,000 in the second quarter, and the production capacity has reached its limit.

According to Li Bin, sales in the second quarter of Lailai will be the quarterly delivery record since the first delivery, reaching 9500 to 10000 vehicles. "We delivered a total of 3838 ES8 and ES6 vehicles in the first quarter of 2020 and 3155 vehicles in April, a strong increase of 105.8 per cent over the previous month," Li Bin said on a conference call. "

The delivery of 3838 units in the first quarter exceeded the 3400mur3,600 units expected in the Q4 financial report business outlook for fiscal year 2019. Among them, March performed the best, with delivery of 1533 units, up 11.7% from the same period last year and 116.8% from the previous month. Affected by the epidemic, sales in the domestic passenger car market fell 40.7% in the first quarter compared with the same period last year.

Li Bin also said that the competitiveness of products and services in Weilai has rebounded its current order growth to pre-outbreak levels, and delivered 3155 units in April, almost as much as in the first quarter combined. Qin Lihong, president of Lulai, and a number of city managers said that due to capacity restrictions, sales in April were significantly lower than expected.

This time, Li Bin also mentioned in the conference call that the current capacity of the Hefei plant is less than 4000 vehicles per month. Li Bin explained that in a single shift, "the capacity of the Hefei plant can reach 4000 units per month, but the limit capacity of the supply chain is 3400 or 3500 units." On the whole, the capacity of the Hefei plant cannot keep up with the speed of delivery due to the impact of the supply chain. Sales of 3155 units in April may have reached the limit of the Hefei plant.

However, Li Bin said that Weilai is planning to increase the entire production capacity of the Hefei plant, with a monthly production capacity of more than 4000 units by August and September, reaching the level of 4,500, 000 units. According to this production capacity, as long as the order can keep up, the monthly delivery volume of Weilai will easily exceed 4000 units.

First Electric Network statistics found that since the start of delivery in June 2018, Weilai has delivered a total of 38906 vehicles, including 20923 ES8 and 17983 ES6.

According to Li Bin, the current delivery ratio of ES6 and ES8 is 3 ES8 and 1 ES6, that is to say, you can sell 3 ES6 while selling 1 ES6. Li Bin believes that this ratio may be caused by the price difference of more than 100000 yuan between the two.

In terms of insurance volume, ES6 overtook Porsche Macan, to achieve the seventh place in the luxury medium-sized SUV market in April, which is also the best result in the history of Chinese brands; in addition, ES6 has also won the title of pure electric SUV market for eight months in a row; at the same time, it has also won the title of luxury pure electric SUV market. Thus it can be seen that ES6 is the responsibility of the coming sales. Whether the sales forecast of Weilai in the second quarter can be realized depends on ES6.

Revenue is better than analysts expected

In addition, the financial report also showed that the total revenue of Lvlai in the first quarter was 1.37 billion yuan, down 15.9% from the same period last year. The operating loss was 1.57 billion yuan, down 44% from the previous month and 40% from the same period last year. Become Wei from since its inception, the realization of the lowest loss per quarter. Weilai said that it was the cost reduction brought about by the improvement of systematic efficiency, which directly improved the loss situation. At the end of 2019, Weilai optimized its sales network, improved promotion efficiency and reduced the number of employees, which reduced its sales and management expenses to 825 million yuan in the first quarter of this year, a decrease of 45.3% from the previous quarter and 33.2% from the same period last year.

Moreover, revenue in the first quarter of Xilai was better than analysts had expected. Revenue will reach 1.287 billion yuan, down 21.1% from a year earlier, and an operating loss of 1.916 billion yuan, down 26.9% from a year earlier, according to expectations given by 14 Bloomberg analysts for the first quarter. However, judging from the current results, the revenue and adjusted net loss disclosed in this financial report are better than expected.

According to the sales forecast for the second quarter, Weilai believes that total revenue in the second quarter will also increase from the same period last year, reaching a certain level between 3.3684 billion yuan and 3.5342 billion yuan, an increase of about 145.5% to 157.6% from the previous quarter, and an increase of about 123.3% to 134.3% from the same period last year.

It is not difficult to see that the future is gradually becoming clear, whether it is sales, revenue, loss or gross profit margin. On April 29, Weilai China project officially landed in Hefei, and Weilai also received an investment of more than 7 billion yuan from Hefei Construction. Real gold and silver solved the life and death robbery of Weilai, so that Weilai had more time. Li Bin said in the financial report, "this strategic investment will provide sufficient funds to support the business development of NIO, enhance our leading position in smart electric vehicle products and technology, and provide services that exceed user expectations. In the long run, the establishment of Weilai China headquarters in Hefei will further improve our operational efficiency. "

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