On May 28th, Ideal Automobile released a message on its official WeChat account, responding to current user concerns about the production capacity and delivery of the Ideal L6. Ideal Automobile stated that regarding the delivery progress of the Ideal L6, the estimated delivery time for immediate order is 5 to 8 weeks. On May 31st, Ideal Automobile announced that the 20000 units of the Ideal L6 in mass production were officially taken offline, and the company will accelerate the production capacity of the Ideal L6. It is expected that monthly production will exceed 20000 units by next month.
In fact, the shortage of terminal products is also reflected in the first quarter financial report of Ideal Automobile in 2024. In the increasingly fierce market competition, the delivery volume of Ideal Automobile in the first quarter of this year was 80400 units, a year-on-year increase of 52.9%; In terms of revenue, the company's total revenue in the first quarter was 25.6 billion yuan, a year-on-year increase of 36.4%.
Regarding the performance of Ideal Automobile in the first quarter, Li Xiang, Chairman and CEO of Ideal Automobile, stated on the financial report conference call, "Since the beginning of this year, we have faced multiple challenges in internal operations and external environmental changes. The performance of the first quarter has fallen short of our expectations at the beginning of the year. In the face of problems, we have actively and quickly adjusted, fully launched and implemented organizational upgrades and process optimization, and improved internal operational efficiency and decision-making quality."
Revenue of 25.6 billion yuan in the first quarter, delivery of 80400 vehicles
According to the first quarter financial report of Ideal Automobile in 2024, the company delivered a total of 80400 new cars, a year-on-year increase of 52.9%. Within just 16 days of its launch, the new Ideal L6 has accumulated over 30000 orders, which undoubtedly proves its market appeal.
In terms of marketing, Ideal Automobile has taken a series of effective measures. Firstly, through precise market positioning and pricing strategies, the New Ideal L6 has successfully attracted the attention of a large number of potential consumers. Secondly, Ideal Automobile has also increased its efforts in building and expanding its sales channels. In addition, Ideal Automobile has also launched a series of preferential policies and services, such as limited time purchase rights, further enhancing the user's car buying experience.
Specifically, in the first quarter of this year, Ideal Automobile achieved a revenue of 25.6 billion yuan, a year-on-year increase of 36.4%; The net profit is 591 million yuan. As for the month on month decline of vehicle sales revenue, Ideal Auto said that due to the seasonal factors related to the Chinese Spring Festival holiday, the sales orders in March were lower than expected, resulting in a decrease in vehicle delivery.
Looking ahead to the second quarter, the quarterly delivery volume of Ideal Automobile is expected to reach 105000 to 110000 vehicles, a year-on-year increase of 21.3% to 27.1%; The total revenue was 29.9 billion to 31.4 billion yuan, a year-on-year increase of 4.2% to 9.4%. On May 21st, Morgan Stanley released an updated valuation report for Ideal Auto, which clearly expressed confidence in its orders and gross profit margin, and set the target price for Ideal Auto's US stock market at $53 and Hong Kong stock market at $205.
Establishing a quality operation team to enhance scientific decision-making
The latest news shows that in the 21st week of 2024 (May 20th to May 26th), Ideal Auto's weekly sales reached 8600 units. In terms of product release, Ideal Automobile has slowed down its pace in 2024. At present, Ideal Automobile has launched five products, including MEGA and four extended range products: L6, L7, L8, and L9.
The Securities Daily reporter learned from Ideal Automobile that the company had originally planned to start a product year this year and would release three pure electric products in the second half of the year. Li Xiang stated that Ideal Automobile will not release pure electric SUV products this year and will release them as early as the first half of next year.
Entering 2024, facing the fiercely competitive new energy vehicle market, Ideal Automobile is also unable to escape price competition. On April 22nd, Ideal Automobile announced a price reduction across the entire lineup, with the 2024 Ideal L7, L8, and L9 models offering a price reduction of 18000 to 20000 yuan, and the Ideal MEGA offering a maximum price reduction of 30000 yuan.
Li Xiang emphasized at the financial report meeting, "The company has no plans to lower prices in the future. After the price strategy adjustment, the order volume of L7, L8, and L9 continues to grow. Overall, we are optimistic about the monthly sales performance in the coming months." At the same time, Li Xiang believes that if you want to sell mid to high end pure electric SUVs at the current stage, you need to have enough self operated supercharging piles. Because when the number of self operated overcharged piles reaches a similar quantity to Tesla China, it is the appropriate time for the product to be launched into the market.
In addition, in order to focus the business on making high-quality decisions, Ideal Automobile conducted an organizational restructuring in the first quarter. Li Xiang stated that the core change of this adjustment is to establish a quality operation team, which does not require a lot of time to be spent on repetitive operational work to improve execution efficiency. Organizational upgrading usually takes 12 to 24 months to see significant results, and it will become clearer by 2025.