On August 28th, Ideal Auto released its financial report, achieving a revenue of 31.7 billion yuan in the second quarter, a year-on-year increase of 10.6% and a month on month increase of 23.6%, setting a new historical high for the same period. After adjustment, the net profit was 1.5 billion yuan, achieving profitability for seven consecutive quarters, and the gross profit margin remained at a healthy level of 19.5%.
The delivery volume of Ideal Automobile in the second quarter reached 108600 units, and the market share of new energy vehicles with a value of over 200000 yuan in China increased from 13.6% in the first quarter to 14.4% in the second quarter, ranking first among Chinese brands.
Ideal Automobile CEO Li Xiang announced at the performance meeting that he will release a pure electric SUV in the first half of 2025, striving to enter the first tier of pure electric high-end products within two years.
Increase R&D investment
Entering the top tier of intelligent driving
We have entered the first tier of the intelligent driving industry. Hongmeng Zhixing is our strongest competitor in the market, "Li Xiang said frankly.
While the delivery volume continues to rise, Ideal Automobile is also stepping up its layout of autonomous driving and building a technological moat. In the second quarter of this year, Ideal Auto's research and development expenses reached 3 billion yuan, with 10% of its revenue invested in the development of core technologies such as intelligent driving, intelligent space, intelligent electric, and vehicle safety, an increase of 24.8% year-on-year.
According to previous financial reports, Ideal Auto has invested 3 billion yuan in research and development for three consecutive quarters.
Ideal Automotive Financial Report
In July of this year, Ideal Auto released a new autonomous driving technology architecture based on end-to-end models and VLM visual language models. On July 15th, it also pushed image free NOA (autonomous assisted navigation driving) to Ideal Auto's AD Max users, which can be used on navigable urban roads nationwide.
In the advancement of intelligent driving technology, the ideal car has gone from relying on high-precision maps, to lightweight maps, and then to the technology route of no maps and end-to-end large models, from being a follower to being on par with leading enterprises in intelligent driving.
As of July 31st, there are only three NOA car companies nationwide that can drive without images. Compared to the push time, Ideal Car ranks second. The ideal car no image NOA technology route is BEV visual model fusion navigation matching algorithm, fully integrating lane structure and navigation features to provide panoramic view for vehicles.
The end to end model of an ideal car is a one model structure. The sensor input and the driving track output are all realized by one model, and have strong logical thinking ability. progressiveness is better than the segmented end to end model route. The end-to-end+VLM solution for Ideal Automotive is the industry's first solution to deploy dual systems on the vehicle side, and also the first team to successfully deploy VLM visual language models on the vehicle side chip.
Li Xiang said at the performance meeting, "Since the launch of NOA without images, the user intelligent driving penetration rate of Ideal Automobile has also significantly increased. As of now, the user intelligent driving penetration rate has exceeded 99%, and the daily activity of urban NOA users has significantly increased. AD Max orders are also continuously increasing
According to a research report by Guosen Securities, the current level of automotive intelligence has achieved technological breakthroughs, including the emergence of large-scale models and popular products. The space for intelligent driving is huge, and technological iteration and product penetration are expected to accelerate.
Profit for 7 consecutive quarters
Specify the release time of pure electric SUV
According to the financial report, Ideal Auto achieved a revenue of 57.3 billion yuan in the first half of this year, a year-on-year increase of 20.8%. Among them, vehicle sales revenue increased by 17.9% year-on-year to 54.6 billion yuan, significantly leading overall revenue over several new energy vehicle companies during the same period.
In terms of net profit, Ideal Automobile's adjusted net profit for the second quarter was 1.5 billion yuan, achieving seven consecutive quarters of profitability.
Although the Ideal L6, which was launched in April this year, expanded the price range of Ideal Automobile models to below 300000 yuan for the first time, the gross profit still maintained steady growth in the first half of the year, reaching 11.46 billion yuan, a year-on-year increase of 13.9%.
In terms of gross profit margin, Ideal Auto was on par with BYD in the first half of the year, at 20% and 20.01% respectively, leading several car companies. Especially in the second quarter, Ideal Auto's gross profit margin remained at a healthy level of 19.5%.
It is worth mentioning that during the performance meeting on the evening of August 28th, Ideal Auto also clarified the specific launch time for its previously postponed pure electric products. Ma Donghui, President and Chief Engineer of Ideal Automobile, stated that multiple 800V high-voltage pure electric products will be launched next year. At present, pure electric products have completed small-scale prototype testing and will be equipped with self-developed core components. We are confident that they will be delivered as planned.
Li Xiang aims to enter the first tier of high-end pure electric products within two years. For pure electric products, Li Xiang stated that he wants to solve two problems: first, the problem of product design, and second, at the same time as delivering pure electric products, he can provide users with over 2000 super pure power stations, and expressed confidence in the competitiveness of pure electric SUVs.
As of August 25, 2024, there are 730 Ideal Supercharging stations in operation nationwide.
Ideal, which started with extended range, currently holds the top spot in new energy vehicle sales and covers a market of 200000 to 600000 yuan, with a market share of over 200000 yuan, ranking first among Chinese brands in the new energy vehicle market. Pure electric products are believed to be another growth pole for it.
Expected delivery of over 145000 vehicles in the third quarter
In the first quarter of this year, Ideal Auto's sales were lower than those of Wanjie, but they experienced a reversal in the second quarter. Since April, Ideal Auto's monthly sales have been leading Wanjie, winning the new force delivery championship and surpassing 50000 units in July, setting a new high.
In the second quarter of this year, Ideal Auto delivered 108600 vehicles, a year-on-year increase of 25.5% and a month on month increase of 35%, maintaining a steady upward trend.
Ideal Automotive Financial Report
The key to the leading delivery volume of Ideal Automobile in the second quarter lies in the explosive launch of Ideal L6. On April 18th, the first model of Ideal Automobile priced under 300000 yuan was launched, with a starting price of 249800 yuan.
Data shows that since May, the Ideal L6 has been the best-selling mid to large SUV for three consecutive months. Since June, the delivery volume of Ideal L6 has continuously exceeded 20000 units. In June and July, in the passenger car market with a price of over 200000 yuan, the Ideal L6's sales were second only to Tesla Model Y, becoming another hot selling model in the car market.
The 2024 Ideal L7, Ideal L8, and Ideal L9 also fully released sales momentum in the second quarter. The Ideal L7 and Ideal L8 dominated the sales of mid to large new energy SUVs with a sales volume of over 300000 yuan, and the Ideal L9 remains one of the top choices for users in the large SUV market. Entering the third quarter, a total of 51000 new cars were delivered in July, setting a historical high for the brand's monthly delivery volume.
On August 21st, the cumulative delivery volume of Ideal Automobile exceeded 900000 units, becoming the first Chinese new force brand to achieve this milestone.
Li Xiang stated at the performance meeting that in the market of over 300000 yuan, the market position of Ideal Automobile as the preferred luxury brand for families is still stable.
Looking ahead to the third quarter, the expected quarterly delivery volume of Ideal Automobile is 145000 to 155000 vehicles, a year-on-year increase of 38.0% to 47.5%; The total revenue is expected to reach 39.4 billion yuan to 42.2 billion yuan, a year-on-year increase of 13.7% to 21.6%.
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