On November 9th, Ideal Motors announced its financial results for the third quarter of 2023. According to the financial report, Ideal Automobile's revenue in the third quarter was 34.68 billion yuan, a year-on-year increase of 271.2%. The operating profit and net profit for the same period were 2.34 billion yuan and 2.81 billion yuan, respectively, achieving four consecutive quarters of profit.
As of September 30th, the cumulative revenue of Ideal Automobile in 2023 was 82.12 billion yuan, further from the previously set revenue target of 100 billion yuan.
In terms of delivery volume, Ideal Automobile delivered 105100 new cars in the third quarter, a year-on-year increase of 296.3%. The growth in sales has made a significant contribution to the quarterly revenue of Ideal Automobile. According to financial report data, in the third quarter of 2023, the sales revenue of Ideal Automotive Vehicles was 33.62 billion yuan, a year-on-year increase of 271.6% and a month on month increase of 20.2%.
In terms of Ideal Automobile, the continuous optimization of enterprise operational efficiency and economies of scale have driven the continuous reduction of company costs. According to financial report data, the gross profit of Ideal Automobile in the third quarter of 2023 was 7.64 billion yuan, a year-on-year increase of 546.7% and a month on month increase of 22.6%. In terms of gross profit margin, in the third quarter of this year, the ideal car gross profit margin reached 22.0%, with year-on-year and month on month data showing an increase.
In terms of cash reserves, in the third quarter of 2023, the free cash flow of Ideal Automobile was 13.22 billion yuan, an increase of 37.5% month on month. As of the end of the third quarter, the cash reserve reached 88.52 billion yuan.
Insiders of Ideal Automobile stated that sufficient funds on hand can ensure the company's long-term and firm investment in research and development and new product layout, which will continue to be converted into user value and accelerate its progress towards a billion dollar enterprise.
Li Xiang, Chairman and CEO of Ideal Automobile, stated that with the continuous expansion of business scale, Ideal Automobile will maintain healthy profitability and continue to invest in research and development to support the company's long-term development.
Looking ahead to the fourth quarter, Ideal Automobile is expected to deliver over 40000 vehicles per month, with quarterly deliveries expected to reach 125000 to 128000 vehicles, a year-on-year increase of 169.9% to 176.3%; The quarterly revenue is expected to reach 38.46 billion yuan to 39.38 billion yuan, a year-on-year increase of 117.9% to 123.1%.
In addition, the first pure electric MPV product MEGA of Ideal Automobile will also be officially released in December this year and will be delivered in February next year. Li Xiang believes that equipped with an 800V high-voltage platform, the ideal MEGA that can achieve 5C charging rate will open a new chapter for ideal cars in the pure electric market, and together with extended range technology, promote the process of large-scale replacement of traditional fuel vehicles. At the same time, in conjunction with the promotion of the pure electric strategy, Ideal Automobile is also accelerating the construction of a super charging network.
It is reported that as of now, 130 ideal overcharging stations have been built and operated along the national highways. Ideal ONE and Ideal L series models support convenient charging functions such as plug and play charging and password free payment. By the end of this year, 300 ideal overcharging stations will be built, covering the four major economic zones of Beijing Tianjin Hebei, Yangtze River Delta, Greater Bay Area, and Sichuan Chongqing.
In terms of research and development investment, in the third quarter, the R&D cost of Ideal Automobile was 2.82 billion yuan, a year-on-year increase of 56.1%. It is reported that the current research and development investment of Ideal Automobile mainly focuses on the "dual energy strategy", with the core still to promote the company's layout in extended range electric, high-voltage pure electric, intelligent driving, intelligent space, as well as system research and development and forward-looking research and development, in order to build a technological moat for the long-term development of the enterprise.