AutoBeta(AutoBeta.net)03/22 Report--

Revenue from zero-running cars in 2022 was 12.385 billion yuan, an increase of 295.4 percent year-on-year compared with 2021, according to results released by Zero cars on the Hong Kong Stock Exchange on March 21. Zero running said: the increase in revenue is due to an increase in sales of electric vehicles and components, as well as an increase in the average selling price of the company's product portfolio as the product structure changes. In terms of delivery volume: the total delivery of zero-running cars in 2022 was 111168, an increase of 154.1% compared with the total delivery of 43748 in 2021. The net loss reached 5.109 billion yuan, an increase of 79.52% over the same period last year, and the net loss in 2021 was 2.846 billion yuan.

Although the total delivery of zero-running cars has increased, its net loss is also expanding. If it is calculated according to the total delivery volume of 111200 zero-running cars in 2022, it is not difficult to calculate a loss of 45900 yuan per car sold. In terms of gross profit margin, according to the financial report, the gross profit margin of zero-running cars in 2022 is-15.4%. So far, the zero gross profit margin is still negative. From 2019 to 2021, the zero running gross profit margin was-95.73%,-50.63% and-44.3%, respectively.

In this regard, Zero said: if the dealer rebate is not taken into account, Zero's gross profit margin in the second half of last year has become positive. As for when the gross profit margin will become a full member, Zero cars said that it will achieve a full profit in 2023, but as the overall automobile market is in drastic changes, the specific time point for the gross profit to become a full member cannot be determined at present. For this year's sales forecast, zero-running cars have set a target of 200000 vehicles, nearly double the annual sales target for 2022. The financial report shows that by the end of 2022, the working capital of zero-running cars was 9.782 billion yuan, an increase of 40.3 percent over the same period last year. Zero run said that the main direction of capital outflow this year will be the procurement of R & D equipment and the continued construction of factories.

It is worth noting that, or affected by the big price reduction of Tesla at the beginning of the year, the sales of zero-running cars fell sharply in January and February. Its January delivery volume was 1139 new cars, down 85.92 per cent from a year earlier and 86.59 per cent from a month earlier. Zero running car said that due to the impact of the epidemic infection and the advance of the Spring Festival of the year of the Rabbit, the sales rhythm of dealers in January was disturbed, and the popularity and transaction performance were relatively weaker than the normal seasonal level, leading to short-term fluctuations, which will gradually return to the normal pace.

In order to boost sales, Zero cars carried out internal organizational restructuring in early January and introduced a time-limited subsidy policy for its C01 model. However, the effect is not obvious, and its February sales are still not as expected, delivering only 3198 vehicles in February, down 6.9% from a year earlier. To this end, in early March, Zero launched a number of models, including Zero C11 extended range version, 2023 C11 Pure Electric, 2023 C01, and the new Zero running T03. Among them, zero run C11 extended range version launched a total of 3 models, the price range of 14.98-185800 yuan; pure electric version of zero run C11, a total of 4 models, price range of 15.58-219800 yuan; 2023 zero run C01 launched 5 models, the price is 14.98-228800 yuan; the new zero run T03 launched four models, the price range is 5.99-89900 yuan.

Of course, with the launch of a number of new cars, the zero-running product matrix is also further expanding, but whether it can reverse the sales of zero-running cars remains to be seen. However, for the newly launched models, Zero management revealed that orders for the new models are in good condition after the launch, and sales revenue in the second quarter is expected to increase by 50% compared with the same period last year. As for the profitability of the add-on model, Zero Auto management said that the new model released on March 1 "has a positive gross margin." From a series of measures to adjust the internal organizational structure, reduce prices and launch a number of new products, it is not difficult to see that it hopes to change the sales structure through the launch and price reduction of new products, and slowly get rid of the image of low-end cars in the market.

It is understood that the main source of sales of zero-running cars is its low-end model zero-running T03. Statistics show that in 2022, the total sales of zero-running cars was 111200. Of these, T03 sold 61900 vehicles, accounting for 55 per cent of total sales in 2022. February sales were 1324, accounting for 41 per cent of its total February sales. Zhu Jiangming, chairman of Zero Motor, said that in the more than 20 days since the launch of the new car on March 1, orders for C11 add-on models and C01 models have exceeded those of the low-cost model T03. C-series products have accounted for more than 80%.

As we all know, at present, most of the new energy car companies belong to the situation of "the more they sell, the more they lose", which has something to do with the scale of sales. In other words, only by constantly expanding sales can we have enough revenue to hedge operating costs. Mid-and high-end models as the main source of profits of car companies, for zero-running cars at this stage, if the newly launched mid-and high-end products can be recognized in this market segment, it will quickly improve its overall profit level. Although zero-running cars have been laid out in mid-and high-end models and sales have improved, low-end models still account for half of its sales. Perhaps for zero-running cars, how to accelerate the sales transformation of mid-and high-end models is the top priority.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat