AutoBeta(AutoBeta.net)05/22 Report--

On May 20, ideal Motor announced its first-quarter results in 2024. The financial report shows that during the reporting period, the total revenue of ideal cars was 25.63 billion yuan, an increase of 36.4 percent over the same period last year and a drop of 38.6 percent from the previous month. Ideal Motors said the month-on-month decline in revenue was mainly affected by seasonal factors related to the Spring Festival holiday and lower vehicle deliveries as a result of weaker-than-expected sales orders in March. In addition, the net profit of the ideal car in the first quarter was 590 million yuan, down 36.7% from the same period last year and 89.7% from the previous quarter. At the same time, the gross profit margin of ideal cars in the first quarter was 19.3%, and the gross profit margin was 20.6%, which decreased compared with the same period last month.

Affected by the results, the share price of ideal Automobile plummeted. Overnight, US stocks fell 12.78% to close at US $21.71, while Hong Kong stocks fell 19.27% to HK $80.65 per share.

It is understood that since the fourth quarter of 2022, ideal Automobile has made profits for six consecutive quarters, becoming the only new power car company in China to achieve continuous profits. However, although it also made a profit in the first quarter of 2024, it fell by 36.7% from the same period last year and 89.7% from the previous month, due to the greatest pressure since its inception in terms of positioning, price and appearance of the first all-electric model, the ideal MEGA. Due to the lower-than-expected sales orders, the ideal car cut its first-quarter delivery to 76000-78000, and finally delivered 80400. There are not many bright spots in this delivery than in the past.

After entering 2024, ideal car has been surpassed by AITO many times, and the sales pressure is unprecedented, especially after the release and listing of MEGA, the stock price of ideal car has fallen sharply, and the sales forecast has been cut. It is understood that the ideal car will adjust the previous delivery target of 800000 vehicles to 56-640000 vehicles, but it will deliver a total of 106200 vehicles from January to April, with only 18.96% completed in terms of 560000 vehicles. Next, the monthly delivery of ideal cars needs to be more than 56000, which is under great pressure.

Even so, ideal Motor Chairman Li Xiang said on the earnings call, "We will be very optimistic about the next monthly sales performance." after the adjustment of the price strategy, the orders of L7, L8 and L9 continue to grow, and the company has no plans to reduce prices in the future. " It is understood that the ideal car's performance guidance for the second quarter is to deliver 105000 to 110000 vehicles, while the ideal car will deliver 25800 vehicles in April, even if calculated according to the lowest line of the delivery guidelines, the delivery volume of the ideal car will reach an average of 39600 in the next two months, which is a lot of pressure. "considering the severe challenges we experienced in March, I think the second quarter will be the most difficult quarter for the company this year," said Li tie, CFO of ideal car.

At present, ideal Motors has launched a total of five products, including L6, L7, L8, L9 and MEGA. According to the plan, the ideal will launch three pure electric SUV in the second half of this year. However, Li Xiangze said on the earnings call that ideal cars will not release pure electric SUV products this year, which will be postponed to the first half of next year.

In other words, in the following second and third and fourth quarters, the source of the growth in ideal car sales will probably only rely on the ideal L6, which is the first model under 300000 yuan under the ideal car, which will be released on April 18. The price starts at 249800 yuan. Backed by the ideal L6, the weekly sales of the ideal car will basically be maintained at about 8000, but if you want to achieve the annual target of 56-640000. It is obviously not possible to rely solely on the ideal L6.

As a matter of fact, the current situation of ideal car is not bad. Its cash reserve is nearly 100 billion yuan at the end of the first quarter, and it is still one of the automobile enterprises with the most abundant cash reserves in China, but the competition in the new energy vehicle industry is becoming more and more fierce. it's just that the challenge facing the ideal car is just beginning.

On April 3, ideal Automobile issued an internal announcement, announcing the upgrade of the current matrix organization, involving the organizational structure adjustment of many departments. This organizational change is mainly concentrated in the ideal Automotive CEO office, from the original department covering brand, product, commercial, strategic and supply departments to the "product and strategic group". In addition, the ideal car also reported a large number of layoffs, its overall optimization ratio of more than 18%, is expected to involve more than 5600 employees, but the ideal official did not respond to the personnel adjustment.

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