AutoBeta(AutoBeta.net)05/20 Report--

On May 20, ideal Motor announced its results for the first quarter of 2024. According to the financial report, the revenue of ideal car in the first quarter was 25.6 billion yuan, an increase of 36.4% over the same period last year, and the market estimate was 25.58 billion yuan; the adjusted net profit in the first quarter was 1.3 billion yuan (excluding equity incentive fees), down 9.7% from the same period last year; gross profit margin remained at 20.6%, compared with 20.4% in the same period last year, mainly due to the decline in vehicle gross profit margin.

In terms of R & D expenses, the R & D cost of ideal car in the first quarter was 3 billion yuan, an increase of 64.6% over the same period last year; sales, general and management expenses were 3 billion yuan, an increase of 81.0% over the same period last year. The increase in costs is due to an increase in employee compensation as a result of an increase in the number of employees, an increase in the cost of supporting the expansion of the product portfolio and technology, and an increase in rental and other expenses as a result of the expansion of the service network.

In terms of new car delivery, the ideal car delivery volume in the first quarter was 80400, an increase of 52.9% over the same period last year. According to the previous announcement, ideal car delivery is expected to be 100000 to 103000 units in the first quarter, and the expected delivery volume was lowered to 76000 to 78000 vehicles due to lower-than-expected sales orders. In response, Mr. Li tie, Chief Financial Officer of ideal Automobile, said that although delivery volume fluctuated month-on-month in the first quarter, he was confident of delivery growth in the next few quarters and maintained investment in R & D and sales network.

By the end of the first quarter of 2024, the ideal automobile cash reserve was 98.9 billion yuan; the cash flow was negative, and the free cash flow was negative 5.06 billion yuan in the first quarter, compared with 6.7 billion yuan in the same period last year and 14.6 billion yuan in the fourth quarter of 2023.

At present, the product matrix of ideal car has reached five models, including ideal L9, ideal L8, ideal L7, ideal MEGA and ideal L6, among which ideal MEGA and ideal L6 are new cars on the market this year. What needs to be faced squarely is that although the ideal car has bid farewell to the era of relying on the ideal ONE, its life is not easy, especially since 2024, it is facing more challenges. At present, ideal car is still facing a lot of operating pressure, according to media reports, ideal car in the "May Day" holiday after the launch of a new round of staff optimization plan, the total optimization ratio is expected to exceed 18%.

On March 1 this year, ideal MEGA went on the market with a price of 559800 yuan. As the first pure electric car and the first MPV model of ideal car, the car is very important to the development of ideal car this year, so it is highly expected. In Li Xiang's view, MEGA has the characteristics of popular style, is confident to become the first sales of all passenger cars above 500000, and has set a radical sales target for the car. However, the car failed to achieve the desired effect after it was launched. Retail data show that ideal MEGA sales in March and April were 3229 and 1145, respectively.

According to the plan, at the beginning of the year, ideal Automobile Chairman Li Xiang set an annual sales target of 800000 vehicles this year, challenging the sales of Mercedes-Benz, BMW and Audi in China, and achieving the first sales of luxury brands in the Chinese market. But after the defeat of the ideal MEGA, the highly advanced ideal car let go of the "fast forward button". According to a circulating investor note, ideal has adjusted its annual sales target of 800000 vehicles to 560000 to 640000, while the ideal MEGA sales guidance has been lowered from 8000 to 2000 per month.

After entering the second quarter, the ideal car also started a new innovation. On April 3, ideal Automobile issued an all-staff announcement, announcing the upgrade of the matrix organization, involving the organizational structure adjustment of several departments, hoping to solve the sales crisis. On April 18, the ideal L6 launched the Pro version and the Max version, the price is 249800 yuan and 279800 yuan respectively, the car positioning five-seat medium-sized SUV, focusing on the 25-300000 yuan household market, becoming the first ideal car model less than 300000 yuan, shouldering the important task of increasing the ideal car market in 2024 On April 22nd, ideal Auto Guan Xuan cut prices for all its L7, L8, L9 and MEGA models, including a price reduction of 1.8-20000 yuan for the L-series and 30000 yuan for MEGA, as well as cash rewards for owners of 2024 L7, L8, L9 and MEGA models. And behind a series of measures is the ideal car hope to hit the sales target.

For the short-term second quarter, ideal Motors said it expected delivery of 105000 to 110000 vehicles in the second quarter, below the market estimate of 130692 vehicles, and expected revenue of 29.9 billion yuan to 31.4 billion yuan in the second quarter, below the market estimate of 38.63 billion yuan.

Or affected by the financial results, the ideal auto US stock dived before the market, down nearly 5%.

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