On June 11th, Geely Krypton Motors, which had recently listed on the US stock market, released its first quarterly financial report after going public. Due to revenue growth and reduced losses in the first quarter, there was a brief period of optimism in the market. The Extreme Krypton US stock market rose 2.7% before trading, but fell 6.51% to $22.12 as of closing.
The revenue of Jike in the first quarter increased year-on-year to 14.737 billion yuan, of which automobile sales revenue was 8.174 billion yuan, an increase of 73% year-on-year. The growth in car revenue is due to a year-on-year doubling of sales in the first quarter, with Geely delivering a total of 33000 cars in that quarter. As a comparison, NIO and Xiaopeng, which also focus on the pure electric market, delivered 30000 and 21800 vehicles respectively in the first quarter.
Due to a price reduction of 31000 yuan compared to the old model, the new Geely Krypton 001, which was launched at the end of February, has driven the growth of Geely Krypton sales, and its sales reached a new high in May. From January to May this year, Jike delivered a total of 67800 vehicles, second only to Aian, Ideal, and Wenjie among the new forces.
Another indicator, the gross profit margin of automobiles, increased to 14% year-on-year, with a slight decrease of 1.3 percentage points compared to the previous period. Extreme Krypton stated that the growth was mainly due to procurement savings and cost reductions, while the month on month decline was due to price reduction promotions and changes in product sales structure leading to a decrease in bicycle prices. The gross profit margin of Geely Krypton's first year of operation was already positive, with a gross profit margin of 15% for the entire year last year.
Extreme Krypton is currently in a loss, but the loss is gradually narrowing. The net loss in the first quarter decreased to 2.022 billion yuan month on month, mainly due to a decrease in research and development expenses and sales expenses in this quarter.
It is worth noting that in addition to its vehicle business, Jike's revenue of over 6 billion yuan comes from the sales of batteries and components by its subsidiaries. The latter has a much higher proportion of revenue than other similar new force enterprises, mainly supplying brands under Geely.
Jike CEO An Conghui predicted during the financial report conference that Jike is expected to achieve its annual sales target of 230000 vehicles. According to this goal, in the remaining 7 months of this year, the monthly average sales of Jike will reach 23000 vehicles. At present, the best monthly delivery volume of Extreme Krypton is 18600 vehicles.
In order to achieve sales growth, Jike has stated that it will expand investment in channel construction and operation, strengthen channel construction in third and fourth tier cities, and expect to increase the number of stores from 392 at the end of May to 520 by the end of this year.
According to Caixin News Agency, Jike also plans to expand its team by adding 25% of frontline positions, reducing the number of middle and back-end positions by 20%, and increasing the total number of marketing service personnel by 16%.
In addition, in terms of products, Jike CEO An Conghui stated that Jike will launch two new cars in the second half of the year, one is a luxury mid size SUV, and the other is Jike MIX. An Conghui stated that the SUV model is located in a large niche market and it is expected to continue to grow in the future. After its launch, it will have a good impact on sales and gross profit margin.