Shanghai, August 28th (Xinhua) -- The founders of two new energy car manufacturing companies announced an increase in their holdings of company stocks. On the morning of the 26th, Xiaopeng Motors announced on the Hong Kong Stock Exchange that its controlling shareholder He Xiaopeng purchased 1 million H-shares at an average price of HKD 27.13 and 1.42 million American Depositary Shares (ADS) at an average price of USD 7.02 per share from August 21, 2024 to August 23, 2024. On the evening of the same day, Zero Run Automobile announced that its founder, chairman and CEO Zhu Jiangming, and concerted action person Fu Liquan plan to increase their holdings of the company's H shares within the next six months, with an increase amount not exceeding RMB 300 million.
Analysts believe that the stock prices of both car companies are currently at a low point. According to their recently disclosed first half performance, although they did not achieve profitability, they both have noteworthy points and show an upward trend.
The board of directors of Xiaopeng stated that He Xiaopeng's increase in holdings demonstrates his firm confidence in the company's future development, and he plans to further increase his holdings.
Zero Run stated that the increase in holdings demonstrates the founder's confidence and commitment to the long-term development of Zero Run. In November last year, Zero Run announced that Zhu Jiangming, his spouse Liu Yunzhen, and concerted action persons would not transfer or reduce their holdings of company shares in any way for the next 10 years.
Strong product cycle approaching, sales steadily increasing
The development paths of the two new force enterprises have been different in the past. Xiaopeng is stronger than Zhijia and leads the end-to-end "getting on the car", but its sales have never made a big breakthrough; Zero Run is positioned as the "Uniqlo of the automotive industry", and although the topic is not high, its sales are steadily increasing, becoming a "dark horse" among new forces. The current commonality between the two companies is that they are about to enter a period of rapid growth and product harvest.
——Xiaopeng enters a strong product cycle
During the recent Q2 earnings conference call, He Xiaopeng stated that the total delivery volume for the third quarter is expected to be between 41000 and 45000 vehicles, with a month on month increase of 35.7% -49%; The total revenue ranged from 9.1 billion yuan to 9.8 billion yuan, with a month on month increase of 12.2% -20.8%.
On the evening of August 27th, on the occasion of its 10th anniversary, Xiaopeng's new model MONA M03 was launched, with a price range of 119800 to 155800 yuan for the three models. In less than an hour of the press conference, the MONA M03 is expected to exceed 10000 vehicles.
Xiaopeng Motors may usher in a product growth cycle due to the release of MONA. He Xiaopeng said, "Starting from the launch of MONA M03 in August, we have entered a strong product cycle and a period of rapid development. From now until the end of 2026, there will be multiple competitive new products and models launched intensively. The planning for AI technology and category innovation, as well as the achievements of technology cost reduction, will be reflected in these products, and through a stronger marketing system, they will be sold in the Chinese and global markets, bringing sustainable growth in sales
With the global market sales growth driven by product cycles, Xiaopeng Motors' economies of scale, operational efficiency, and cash flow will improve accordingly, "said Gu Hongdi, Vice Chairman and President of Xiaopeng Motors. In the sales guidance for the third quarter, it is expected that the monthly delivery volume may reach 20000 vehicles, the highest level in history.
Multiple institutional analysts believe that the product strength and cost-effectiveness of MONA M03 are highly competitive, and it is expected to lead Xiaopeng into the second growth curve. He Xiaopeng's increase in holdings indicates his confidence in the performance of the new model.
——Zero Run sales steadily increase
According to the financial report of Zero Run, the operating revenue in the first half of the year was 8.85 billion yuan, a year-on-year increase of 52.2%, ranking among the top new forces in terms of growth rate. In the first half of the year, a total of 86696 vehicles were delivered, a year-on-year increase of 94.8%. After the release of the 2024 new model, the delivery volume has been climbing month by month. In June, it exceeded 20000 vehicles for the first time, and in July, it delivered 22093 vehicles, second only to Ideal and Wanjie, entering the first camp of new forces, and is expected to continue to achieve significant growth in the third quarter.
Thanks to the scale effect brought by the increase in sales and continuous cost management, the zero run gross profit margin in the first half of the year was 1.1%, a significant increase year-on-year, and the gross profit margin improved to 2.8% in the second quarter. During the performance exchange conference call, Zhu Jiangming stated that it is expected that the company's gross profit margin will continue to increase in the second half of the year. The zero run gross profit margin in July this year has reached over 5%, showing a trend towards optimism. The overall gross profit margin for this year is expected to reach a level of over 5%.
Regarding sales volume, Zhu Jiangming stated that he aims to achieve a sales target of 250000 vehicles this year and has a long-term goal of entering the top eight in new energy sales for automotive companies.
The overseas market has entered the stage of "increasing volume", and the future is promising
Both Xiaopeng and Leapmotor have established deep strategic partnerships with large European car companies, such as equity, technology research and development, and sales. Xiaopeng Motors and Volkswagen Group signed four consecutive cooperation agreements within one year, covering platform and software strategic technology, electronic and electrical architecture, etc; The cooperation between Zero Run and Stellantis Group directly targets overseas markets, providing "electric vehicle products that are highly competitive in price and feature advanced technology".
Xiaopeng's overseas business is also constantly growing, and the long-term layout of international car models and overseas markets is entering a period of rapid development, becoming an important driving force for sales and profit growth. In the second quarter of this year, Xiaopeng Motors ranked first in the export sales of mid to high end models of pure electric brands in China (sales priced at over 30000 US dollars), and the contribution of overseas sales exceeded 10% for the first time.
Analysts have pointed out that the increasingly close cooperation between Xiaopeng and Volkswagen has also increased the possibility of its exports. Volkswagen's mature and stable sales channels and supply chain system in the European market may help Xiaopeng expand its European market faster and explore its future development direction.
Xiaopeng has not only achieved success in multiple European markets, but also accelerated its layout in Southeast Asia. After its listing in Thailand, Xiaopeng will launch Xiaopeng G6 in Malaysia and gradually enter markets such as Singapore and Australia. The rapid entry into overseas markets is expected to contribute considerable profits in the future, "said a research report by Shenwan Hongyuan.
The light asset overseas model of Zero Run has always been highly anticipated. In May of this year, Zero Run International, led by Stellantis Group, was officially established, providing ample room for imagination in overseas markets. Zero Run revealed that nearly 2000 C10 and T03 vehicles have been shipped to Europe in July, both of which have obtained EU WVTA certification. Starting from September, they will be officially launched in nine European markets and expand to over 200 sales outlets by the end of the year. In the fourth quarter, we will expand into Asia Pacific, Middle East, Africa, and South America.
Zhu Jiangming said that Zero Run will export 6000 to 7000 vehicles this year and achieve the sales target of "tens of thousands of vehicles" next year. It will decide whether to start localized production in Europe based on European tariff policies and changes in sales volume.
Zero Run Automobile will accelerate its overseas business expansion, leveraging Stellantis' leading position in the European market and entering the European market with a light asset business model. With Stellantis' advantage in the European market, Zero Run is expected to become one of the first Chinese car manufacturers to achieve rapid breakthroughs in the European market, and its overseas market sales are expected to exceed market expectations in the next two years, "said a research report by Guotai Junan.