Caixin News Agency, June 12th (Reporter Tang Zhixiao): Recently, Jike released its first performance report since going public.
According to the performance report, Jike achieved a revenue of 14.737 billion yuan in the first quarter, a year-on-year increase of 71% and a month on month decrease of 9.9%; The net loss was 2.022 billion yuan, a year-on-year decrease of 18% and a month on month decrease of 31.2%; As of March 31, 2024, the company's cash, cash equivalents, and restricted cash amounted to RMB 3.791 billion.
Looking specifically at the automotive business, Jike delivered a total of 33100 vehicles in the first quarter, a year-on-year increase of 117%, reaching a new quarterly high. In April, the number of vehicles delivered was 16100, a year-on-year increase of 99%. In May, the number of vehicles delivered was 18600, a year-on-year increase of 115%. The sales revenue of automobiles in the first quarter was 8.174 billion yuan, a year-on-year increase of 73% and a month on month decrease of 22.8%.
The vehicle profit margin in the first quarter of 2024 was 14.0%, while it was 10.1% in the first quarter of 2023 and 15.3% in the fourth quarter of 2023.
Jike said that the month on month decline was mainly due to seasonal factors affecting delivery volume, as well as changes in its product portfolio leading to a decrease in average selling prices. "Due to effective procurement cost control, the vehicle profit margin has also increased by 3.9 percentage points year-on-year," added Yuan Jing, CFO of Jike, at the performance meeting
Specifically, at the product level, the Jike 007 began delivery in January and launched an enhanced rear wheel drive version in early April; In early February, the all-new Extreme Krypton 001 was launched; In April, the four seater ultra luxury flagship MPV Extreme Krypton 009 Glory was launched and delivery began in May; The Extreme Krypton MIX officially made its debut in April and is scheduled to be officially launched in the fourth quarter of this year.
According to the disclosed information, the sales target for Jike in 2024 is 230000 vehicles, with an export quantity planned to reach 30000 vehicles. As of the end of May, there were 392 stores opened worldwide, including 380 domestic stores and 12 overseas stores.
At the performance meeting, Yuan Jing revealed that Jike plans to expand its store count to over 520 by the end of this year. "Jike already has enough stores in first tier cities, and will expand to third - and fourth tier cities to improve efficiency."
From a cost perspective, Jike's investment in research and development continues to increase. In the first quarter of 2024, the R&D expenses reached 1.925 billion yuan, a year-on-year increase of 6.7%, a decrease of 39.1% from the RMB 3.163 billion in the fourth quarter of 2023, and the cumulative R&D investment reached 18.9 billion yuan.
The sales, general, and administrative expenses of Jike in the first quarter of 2024 were RMB 1.952 billion, an increase of 51.9% from RMB 1.2844 billion in the first quarter of 2023, and a decrease of 11.6% from RMB 2.2079 billion in the fourth quarter of 2023.
Regarding this, Jike stated that the year-on-year growth was due to an increase in the number of employees of Jike in China and overseas, an increase in marketing and promotion activities of Jike Motors in China and overseas, as well as an increase in leasing and related expenses. Compared to the previous quarter, the decrease is mainly due to a decrease in marketing and promotional activities.
After the performance meeting, according to An Conghui, CEO of Jike, a brand new mid to large-sized pure electric SUV will be released in the second half of the year. At that time, the product matrix will reach 6 models, including models from compact SUVs to mid to large-sized MPVs.
It is worth noting that although sales of new energy vehicles have increased according to data from the China Association of Automobile Manufacturers, the price war among major automakers has become increasingly fierce. Since the price war led by BYD earlier this year, Tesla, NIO, and joint venture car manufacturers have all been involved.
How to seek new increments in the fierce price war? Debon Securities recently released a research report stating that in the first quarter, various car companies showed differentiated performance, and under the price war, car exports and high-end products are expected to contribute to performance growth.
In An Conghui's view, the current market is still very large and will continue to grow in the future. After the launch of two SUV models (MPV Jike 009 Guanghui and Jike MIX), it will be very helpful for Jike's sales and gross profit margin. Extreme Krypton will also accelerate its channel layout in the third and fourth tier markets this year, which will further boost sales.
In addition to expanding into domestic sinking markets, Jike is also seeking growth in overseas markets. According to the plan of Jike, we will enter 6 to 8 European luxury car markets and more countries and regions by the end of the year, followed by 50 countries and regions such as Southeast Asia, the Middle East, South America, and Australia.
Recently, news has been circulating that the European Union will impose tariffs on Chinese electric vehicles. On June 11th, spokesperson for the Ministry of Foreign Affairs, Lin Jian, stated that China urges the European side to terminate the investigation as soon as possible to avoid damaging China Europe economic and trade cooperation and the stability of the industrial and supply chains.
In response, Yuan Jing stated that he will not comment on any government or policy, but will comply with all relevant laws and regulations in the operating area and adjust strategies according to the situation. "In Southeast Asia, Western Europe, and the United States, our group has manufacturing facilities, and Jike will adopt a 100% localization production and manufacturing strategy. Compared to our competitors, we have more flexible localization capabilities."
He also added that although Extreme Krypton has expanded in the European region, it will take some time for the southern European market to grow. For the company, what is more crucial is the markets in Latin America, Southeast Asia, and the Middle East.