On August 21st, Jike Motors announced its unaudited quarterly financial performance for the first half of 2024, marking its first semi annual report since entering the capital market in May of this year.
Overall, with the year-on-year increase in sales in the first half of the year, the operating income of Jike Motors has also shown a significant upward trend. In addition, thanks to the economies of scale, the company's profitability has also improved. However, due to continuous R&D investment, Jike Motors is still in a net loss state.
According to the financial report, in the first half of this year, Jike Automobile's operating revenue was nearly 35 billion yuan, a year-on-year increase of over 60%; The comprehensive gross profit margin was 14.9%, a year-on-year increase of 4.4 percentage points; The net loss was 3.83 billion yuan, a year-on-year decrease of 40 million yuan. Among them, in the second quarter of this year, Jike Automobile achieved a revenue of over 20 billion yuan, a year-on-year increase of 58% and a month on month increase of 36%, setting a new historical high for a single quarter; The comprehensive gross profit margin reached 17.2%, with a vehicle gross profit margin of 14.2%, an increase of 0.6 percentage points year-on-year and 0.2 percentage points month on month; The net loss for a single quarter was approximately 1.8 billion yuan.
The net loss of Jike Motors is due to its continuous growth in research and development investment. In the second quarter of this year, Jike Motors' research and development investment reached 2.62 billion yuan, an increase of nearly 90% year-on-year and 36% month on month; In the first half of this year, Jike Automobile's cumulative R&D investment was 4.55 billion yuan, a year-on-year increase of 42.6%.
Under non US Generally Accepted Accounting Principles, Jike Motors' net loss in the second quarter of this year decreased by 36.8% year-on-year and 57.2% month on month to 865 million yuan. Jike Motors stated that under Hong Kong accounting standards, after excluding the impact of share based payments, Jike's net loss in the first half of the year significantly narrowed to 70 million yuan, and it achieved a turnaround from loss to profit in the second quarter.
As of 4:10 pm Eastern Time on August 20th, the after hours stock price of Jike Motors rose 1.71% to $15.48.
Both Geely Holding Group, the major shareholder of Jike Motors, and Jike Motors itself have stated in multiple public occasions that Jike Motors has two major goals for this year. One is to achieve annual sales of 230000 vehicles, and the other is to turn losses into profits under Hong Kong financial reporting standards.
In a media interview after the launch of the all-new Jike 009 in July this year, An Conghui, President of Geely Holding Group and CEO of Jike Intelligent Technology, stated that among all Jike products, Jike 009 has a relatively good gross profit margin and reiterated that Jike strives to achieve breakeven this year.
In the first seven months of this year, the cumulative sales volume of Jike Automobile was 103500 units, a year-on-year increase of 89%, achieving 45% of the annual sales target. This means that in order to achieve this year's sales target, Jike Motors must achieve an average monthly sales volume of over 25000 vehicles in the next five months, which still poses certain challenges for Jike Motors.
In order to achieve sales targets, Jike Motors is expected to launch two new models in the second half of this year. Among them, Jike MIX has been unveiled at the Beijing Auto Show and is jokingly referred to as the "baby bus" in the industry; In addition, the first family SUV car of Jike Motors, Jike 7X, has recently been listed in the catalog of the Ministry of Industry and Information Technology, and is expected to benchmark against Tesla Model Y.