On August 21st, Jike Motors released its unaudited quarterly financial results for the first half of 2024, marking its first semi annual report since going public on the New York Stock Exchange in May of this year.
Overall, with the year-on-year increase in sales and the manifestation of economies of scale, Jike's revenue in the first half of the year was 34.78 billion yuan, a year-on-year increase of 63.5%.
From the second quarter perspective, under non US Generally Accepted Accounting Principles, Jike suffered a net loss of 865 million yuan per quarter. However, Jike stated that under Hong Kong accounting standards, after excluding the impact of share based payments, Jike's net loss narrowed significantly to 70 million yuan in the first half of the year, and it achieved a turnaround from loss to profit in the second quarter.
Looking ahead to the second half of the year, Jike reiterated that it will maintain its annual sales target of 230000 vehicles and aim to turn losses into profits for the whole year under Hong Kong financial reporting standards.
Despite facing pressure, we remain confident in our sales target of 230000 vehicles for the full year of 2024, "said An Conghui, President of Geely Holding Group and CEO of Jike Intelligent Technology, during Jike's Q2 earnings conference call on the evening of August 21st.
In addition, An Conghui also revealed for the first time the relevant information of Jike's flagship SUV. "It is expected that the Jike large flagship SUV model released in the fourth quarter of 2025 will be equipped with two power forms, one is pure electric and the other is super hybrid." This means that Jike will no longer adhere to pure electric.
The gross profit margin of the entire vehicle in the second quarter was 14.2%
According to financial report data, in the second quarter of this year, Jike achieved a revenue of 20.04 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 total vehicle sales revenue reached 13.438 billion yuan, a year-on-year increase of 59% compared to the same period last year's 8.45 billion yuan; The sales revenue of batteries and other components was approximately 5.3 billion yuan, a year-on-year increase of 36.1%; The revenue from research and development services and other services was 1.3 billion yuan, a year-on-year increase of 326.8%.
The increase in sales in the second quarter drove the revenue growth of Jike in the current quarter. From April to June this year, the cumulative delivery volume of Extreme Krypton doubled year-on-year to 54800 vehicles.
However, in order to sell more new cars, Jike's sales and management expenses also increased significantly in the second quarter, rising 61.3% year-on-year to 2.605 billion yuan. In addition to the impact of equity incentive expenses from the May listing, the expansion of offline channels both domestically and overseas has also increased expenses.
An Conghui revealed that as of the end of July, Jike has 438 global stores and is expected to expand to over 520 by the end of the year, further penetrating third - and fourth tier cities in China.
In terms of research and development, the R&D expenditure of Jike reached 2.624 billion yuan in the second quarter of this year, an increase of nearly 90% year-on-year and a month on month growth of 36%; Jike stated in its performance report that the growth was mainly due to salary distribution.
Affected by the growth of sales expenses and research and development expenses, the gross profit margin of Jike's second quarter automobile only increased by 0.6 percentage points year-on-year to 14.2%, which is basically the same as the first quarter.
After the release of the second quarter performance report, Jike reiterated that its annual sales target of 230000 vehicles remains unchanged.
According to the delivery volume data released by Jike, after delivering over 20000 vehicles in a single month for the first time in June, its delivery volume in July dropped to about 16000 vehicles; In the first seven months of this year, Jike Motors delivered a total of 103500 vehicles, a year-on-year increase of 89%, and achieved 45% of its 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 a challenge for Jike Motors.
The flagship SUV model will be equipped with both pure electric and super hybrid power forms, and will be released next year
In order to achieve sales targets, Jike Motors is expected to launch two new models, Jike 7X and Jike MIX, in the second half of this year.
An Conghui revealed that the Jike 7X will make its global debut at the Chengdu Auto Show at the end of August and is expected to be released at the end of September. Jike MIX will be officially launched and released in the fourth quarter. Both models will be equipped with Jike's self-developed Haohan Intelligent Driving 2.0.
Looking ahead to next year, Jike will launch a flagship SUV in the fourth quarter. This new car, Jike, will abandon the pure electric route and offer two power modes: pure electric and super electric hybrid. An Conghui did not disclose more details about the new power form during the financial report conference, only stating that the Extreme Krypton Super Electric Hybrid System will be released in the future. It is a new power form that combines the advantages of pure electric and plug-in hybrid extended range technology, ensuring that it can balance high-speed energy consumption and driving range in all pure electric driving experiences.
Regarding how to distinguish the market positioning of Jike and Lynk&Co, An Conghui stated that there is no conflict between the Jike and Lynk&Co brands. Our company has an internal brand management committee to strictly manage each brand under our umbrella, ensuring that there is no overlap between products. Secondly, from the perspective of brand positioning, Jike is positioned as a high-end luxury brand, while Lynk&Co is positioned as a mid to high end brand, so both have their own characteristics at the brand level. The Extreme Krypton large SUV is a product developed based on the vast architecture, which features high flatness and universality, helping to maximize cost-effectiveness.
In addition to its large flagship SUV, Jike also has a brand new hunting car based on the 007 architecture, which will be launched and released next year.
Response to Model Change Controversy: The all-new Jike 009 and three other models do not have a model year iteration plan for the next year
On the same day that Jike disclosed its first half performance, Geely Automobile also released its semi annual report. At the mid-term performance conference of Geely Automobile, An Conghui publicly responded for the first time to the controversy caused by the updates and replacements of the Jike 001 and 007 models.
"I think you will ask this question today," he said frankly. "Before the release, there was really a lack of communication with users in advance, which caused some complaints and roast from users."
An Conghui stated that there are no annual iteration plans for the all-new Jike 009, as well as the 2025 Jike 001 and Jike 007, within the next year from the date of product release; But the normal OTA software upgrade or optional configuration changes of the vehicle will still be maintained.
In addition, regarding the Mobileye intelligent driving system used by Jike in the early stage, An Conghui stated that "we will continue to develop and iterate" and will retain products of the Mobileye intelligent driving system in China.
The controversy surrounding this car model upgrade originated a week ago when on August 13th, Jike released the 2025 Jike 001 and 2025 Jike 007 models, with additional features and price reductions of 259000 yuan and 209900 yuan respectively, sparking controversy.
Since 2023, the Jike 001 has undergone three facelifts and the replacement cycle has been continuously compressed. The 2025 new car has been updated in less than half a year. Among them, the controversy lies in the fact that the old model cannot be upgraded to the vast intelligent driving 2.0 using the Mobileye intelligent driving solution.
Jike will focus on software iteration to provide users with a better intelligent experience, and the intelligent driving function of Mobileye's solution will continue to be developed and iterated An Conghui explained that the original intention of rapid iteration of Jike products is to enable users to quickly use the latest technology and have a better product experience. How to solve the relationship between product iteration and old users in the future is a difficult and correct thing