Revenue of 9.56 billion, gross margin of 23%, and Ideal Motors releases its Q1 2022 financial report.

I. 2022Q1 Financial Data

  • Total revenue of RMB 9.56 billion, a YoY increase of 167.5% and a QoQ decrease of 10%;

  • Automotive revenue of RMB 9.31 billion, a YoY increase of 168.7% and a QoQ decrease of 10.3%. The decrease in automotive sales revenue was mainly due to a reduction in delivery volume caused by the Spring Festival in the first quarter;

  • Total gross profit of RMB 2.16 billion, a YoY increase of 250.9% and a QoQ decrease of 9.1%;

  • Overall gross profit margin was 22.6%, compared to 17.3% in the same period last year and 22.4% in the previous quarter;

  • Gross profit margin per vehicle was 22.4%, compared to 16.9% in the same period last year, and increased slightly from the previous quarter’s 22.3%, mainly due to the higher transaction price of the 2021 Ideal ONE;

  • Sales cost was RMB 7.4 billion, a YoY increase of 150.1% and a QoQ increase of 10.2%, attributed to the impact of vehicle delivery volume;

  • Net loss of RMB 10.9 million, compared to a net profit of RMB 295.5 million in the previous quarter;

  • Operating cash flow of RMB 1.83 billion, a YoY increase of 98% and a QoQ decrease of 52.2%, with a free cash flow of RMB 502 million;

  • As of March 31, 2022, the company’s cash reserves (cash and cash equivalents, restricted cash, and short-term investment balances) were RMB 51.19 billion, compared to RMB 50.16 billion in the previous quarter;

  • R&D expenditure for the fourth quarter of Ideal Auto was RMB 1.23 billion, a QoQ increase of 38.4%, accounting for 11.58% of the total revenue of the fourth quarter;

  • Sales and management expenses were RMB 1.2 billion, a YoY increase of 135.9% and a QoQ increase of 6.8%. The increase in expenses was mainly due to personnel growth, salary increases, and venue rental and marketing activities associated with company expansion.

II. 2022Q2 Business Outlook

  • It is expected that vehicle deliveries will be between 21,000 and 24,000, an increase of about 19.5% to 36.6% compared to 2021Q2;

  • Expected total revenue will be between RMB 6.16 billion and RMB 7.04 billion, an increase of about 22.3% to 39.8% compared to 2021Q2.

III. Store Status

  • As of April 30, there were 225 retail centers, 292 service centers, and authorized body repair centers covering 221 cities in 106 cities.

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.