Revenue of 9.34 billion, gross profit margin of 13%, and Ideal Auto released its Q3 2022 financial report.

Ideal Financial Report for Q3 2022

I. Financial Data for Q3 2022

  • Total revenue was RMB 9.34 billion, an increase of 20% YoY and 7% QoQ;

  • Revenue from automotive business was RMB 9.05 billion, an increase of 22% YoY and 7% QoQ;

  • Total gross profit was RMB 1.18 billion, a decrease of 35% YoY and 37% QoQ;

  • The overall gross profit margin was 13%, compared to 23% in the same period last year and 22% in the previous quarter;

  • The gross profit margin per vehicle was 12%, which is lower than the previous quarter (21%);

  • Sales costs were RMB 8.16 billion, an increase of 37% YoY and 19% QoQ;

  • Net loss was RMB 1.65 billion, compared to a net loss of RMB 0.641 billion in the previous quarter;

  • The company’s cash reserves (cash and cash equivalents, restricted cash, and balances of fixed deposits and short-term investments) were RMB 55.83 billion, compared to RMB 53.65 billion in the previous quarter;

  • Research and development expenses for Ideal in the third quarter were RMB 1.8 billion, an increase of 18% QoQ, accounting for 19% of total quarterly revenue;

  • Sales and management expenses were RMB 1.51 billion, an increase of 48% YoY and 14% QoQ.

II. Business Expectations for Q4 2022

  • Expected delivery of 45,000 to 48,000 vehicles, representing a growth of approximately 28% to 36% compared to Q4 2021;

  • Expected total revenue between RMB 16.51 billion and RMB 17.61 billion, representing a growth of approximately 55% to 66% compared to Q4 2021.

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.