Ideal Automotive releases Q3 financial report, with a vehicle gross profit of 19.8% and a total revenue of 2.511 billion yuan.

The Ideal Car officially released its Q3 2020 financial report this afternoon, marking the first time for the company to release a financial report since going public. The following are the core data:

Delivery:

  • 8,660 cars were delivered in Q3 2020
  • 6,604 cars were delivered in Q2 2020
  • 2,896 cars were delivered in Q1 2020

In October of this year, 3,692 cars were delivered, and as of October 31, 2020, a total of 21,852 cars have been delivered. In the financial report, Li Xiang stated that the delivery volume in Q4 2020 is expected to reach 11,000-12,000 cars.

Therefore, Ideal Car is expected to achieve its annual delivery target of 30,000 cars this year.

Financial:

  • In Q3 2020, the sales revenue of vehicles was RMB 2.46 billion, an increase of 28.4% compared with Q2 2020 (RMB 1.92 billion) (total revenue in Q3 2020 was RMB 2.51 billion, compared with RMB 1.95 billion in Q2 2020, a year-on-year increase of 28.9%);
  • The gross profit margin ofvehicles in Q3 2020 was 19.8%, compared with 13.7% in Q2 2020 (total gross profit margin in Q3 2020 was 19.8%, compared with 13.3% in Q2 2020);
  • The net loss in Q3 2020 was RMB 106.9 million, an increase of 42.2% compared with RMB 75.20 million in Q2 2020.

The gross profit of Ideal Car has again increased to a very surprising number this quarter. In the financial report, Ideal Car stated that the increase in gross profit was mainly due to the decrease in vehicle material cost and the decrease in unit manufacturing cost brought by the increase in production.

Others:

  • The sales cost in Q3 2020 was RMB 2.01 billion, an increase of 19.3% compared with RMB 1.69 billion in Q2 2020;
  • The total profit in Q3 2020 was RMB 469 million, an increase of 91.3% compared with RMB 259 million in Q2 2020;
  • The R&D investment in Q3 2020 was RMB 334 million, an increase of 66.1% compared with RMB 201 million in Q2 2020.- As of October 31, 2020, Li Auto has a total of 41 retail stores covering 36 cities.
  • As of September 30, 2020, Li Auto’s cash reserves had increased significantly to RMB 18.916 billion, compared to RMB 3.709 billion at the end of 2019.
  • Li Auto expects total revenue for Q4 2020 to be around RMB 3.11 billion to RMB 3.39 billion.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.