Recently, a reporter from China Business Daily learned that Ideal Automobile has released its performance report for the third quarter of 2023. Data shows that the total revenue of Ideal Automobile in the third quarter was 34.68 billion yuan, an increase of 271.2% year-on-year. Among them, the sales revenue of vehicles was 33.62 billion yuan, an increase of 271.6% year-on-year. In terms of profits, Ideal Automobile achieved a net profit of 2.81 billion yuan in the third quarter, compared to a net loss of 1.65 billion yuan in the same period last year.
The sales chart released by Ideal Motors for the 46th week of 2023 (November 6-12) shows that Ideal Motors sold 10000 units per week. As of November 12, Ideal Motors had sold 15400 units this month. Regarding this, Ideal CEO Li Xiang posted on social media that: continue to maintain the limit of production=delivery volume. This week, the sales of Ideal L7/L8/L9 cars have been infinitely close to Mercedes Benz and Audi, and the weekly revenue has surpassed Audi.
According to a research report released by Southwest Securities, it is expected that the operating revenue of Ideal Automobile from 2023 to 2025 will be 121.51 billion yuan, 222.1 billion yuan, and 325.78 billion yuan. The operating revenue will continue to grow in the next three years. Southwest Securities also believes that Ideal Automobile will continue to benefit from the booming development of the new energy vehicle market. The company's L-series models are popular among users, and the launch of new models is imminent. It is expected that the order volume will continue to grow rapidly.
Four consecutive quarters of profitability
Some analysts believe that Ideal Automobile is likely to achieve overall profitability this year, becoming the first new power automobile company in China to achieve an annual breakeven point.
It is understood that since achieving its first profit in the fourth quarter of last year, this is the fourth consecutive quarter in which Ideal Automobile has achieved profitability. Among all new car manufacturers, Ideal Automobile is the first to achieve quarterly profits. As of now, Ideal Automobile is still the only new car manufacturing enterprise that has achieved profitability.
The data shows that the gross profit margin of Ideal Automobile reached 22% in the third quarter, and the gross profit margin of Automobile was 21.1%. As of the end of the third quarter, Ideal Automobile had a free cash flow of 13.22 billion yuan and a cash reserve of 88.52 billion yuan, an increase of 14.7 billion yuan compared to the end of the second quarter.
The ideal car can achieve good gross profit margin indicators without its strategy of reducing costs and increasing efficiency. Ideal Automobile President Ma Donghui stated that in the short term, business cost reduction will be the main focus, while in the medium to long term, project platformization, including procurement volume and cost accounting, will be used to bring procurement prices back to a reasonable level. At the same time, we will also search for opportunities to reduce costs and increase efficiency from end to end and throughout the entire chain, including product research and development, technological innovation, etc.
Entering the Pure Electric Vehicle Market
In fact, the growth of ideal car sales has driven the growth of performance. In the third quarter of 2023, the delivery volume of ideal cars reached 105108 units, a year-on-year increase of 296.3%. As of October 31 of this year, Ideal Automobile has delivered a total of 284647 vehicles throughout the year, showing a positive growth trend in sales for 10 consecutive months. Among them, the delivery volume in October exceeded the 40000 vehicle mark for the first time, and it is also the first car company among the new forces in China to achieve this goal.
It is understood that the Ideal L-series SUV series, which is the ideal extended range electric platform for cars, has been widely welcomed in the market. Among them, the Ideal L9 has won the championship in sales of large SUVs, while the Ideal L7 and Ideal L8 have respectively ranked first and second in sales of medium to large SUVs. As of the end of the third quarter of 2023, the cumulative user delivery volume of Ideal Automobile has exceeded 500000 units.
Based on the good performance in the third quarter, Ideal Automobile is expected to deliver 125000 to 128000 vehicles in the fourth quarter, a year-on-year increase of 169.9% to 176.3%, and a total revenue of 38.46 billion to 39.38 billion yuan, a year-on-year increase of 117.9% to 123.1%.
During the third quarter performance conference call, Li Xiang stated that Ideal Cars will further replace traditional fuel vehicles on a large scale in 2024. In terms of production, in October this year, the Ideal Automobile Changzhou manufacturing base completed capacity upgrades, preparing for further production ramps in the fourth quarter; In terms of supply chain management, it is ideal to optimize management strategies, upgrade management processes, strengthen efficient collaboration with suppliers, and continuously break the bottleneck of component supply.
At the same time, Ideal Automobile has also made a layout in the pure electric market. Li Xiang stated: The first 5C pure electric super flagship model, the Ideal MEGA, will be officially released in December this year and will be delivered in February next year. We believe that the ideal MEGA, equipped with an 800V high-voltage platform and achieving 5C charging rate, will open a new chapter for ideal cars in the pure electric market, and together with extended range technology, promote the process of large-scale replacement of traditional fuel vehicles. At the same time, in conjunction with the promotion of pure electric strategy, we are accelerating the construction of a super charging network to use Provide users with a more convenient and reliable energy replenishment experience