In the second quarter of 2020, Weilai achieved a revenue of 3.718.9 billion yuan, an increase of 146.5% year-on-year (compared with the same period of the previous year), and an increase of 171.1% month on month (compared with the same period of last year), exceeding the upper limit of revenue of 3534.2 million yuan previously predicted by the company; the net loss continued to narrow to 1.177 billion yuan, a decrease of 64.2% year-on-year and a decrease of 30.4% month on month; the gross profit margin turned positive for the first time to 8.4%, which was negative 33.4% in the same period last year, and negative in the last quarter As of June 30, 2020, Weilai had cash and cash equivalents, with restricted cash and short-term investment of RMB 11.2 billion.
among them, the automobile sales volume of Weilai in the second quarter was RMB 3.486.1 billion, with a year-on-year increase of 146.5% and a month on month growth of 177.6%. The gross profit margin of auto sales was 9.7%, negative 24.1% in the second quarter of 2019 and negative 7.4% in the previous quarter.
Weilai automobile said that the year-on-year and month on month growth of automobile gross profit margin was mainly due to the decrease of purchasing cost of some materials in the second quarter of 2020 and the reduction of unit manufacturing cost caused by the increase of production. In addition, compared with the second quarter of 2019, the growth of gross profit margin of automobiles in the second quarter of 2020 is also attributed to the one-time impact related to the recall of active batteries of the company in the second quarter of 2019.
according to the financial report data, as of July 31, 2020, the cumulative delivery volume of Weilai es8 and ES6 reached 49615, of which 17702 vehicles were delivered in 2020. Among them, 10331 vehicles were delivered in the second quarter, which exceeded the upper limit of the first quarter forecast by 10000 vehicles; in July, the delivery volume of es8 and ES6 was 3533, with a year-on-year increase of 322.1%. Wei said that the novel coronavirus pneumonia epidemic increased the delivery volume, and the delivery volume increased.
Li Bin, founder, chairman and CEO of Weilai, said in the financial report: “our quarterly delivery volume in the second quarter of 2020 has reached a record 10331 vehicles. As this momentum continues, we expect to deliver 11000 to 11500 vehicles in the third quarter. The current capacity constraints will be lifted in the near future, and we believe that our production capacity can meet our demand acceleration model. ”
Weilai forecasts that the car delivery volume in the third quarter will be between 11000 and 11500, with a year-on-year increase of 129.2% to 139.6% and a month on month increase of about 6.5% to 11.3%. The total revenue will be between RMB 4.047.5 billion (about US $572.9 million) and RMB 42123 million (about US $596.2 million), with a year-on-year increase of about 120.4% to 129.3% and a month on month increase of about 8.8% to 13.3%.
in the conference call after the release of the financial report, Li Bin said that Weilai would continue to increase its gross profit margin and was very confident that the gross profit rate and comprehensive gross profit rate of the whole vehicle in the second half of this year will both exceed 10%.
in addition, Li Bin said that the company is also speeding up the development of new products, and disclosed that the next product is a car, and will increase research and development investment in automatic driving technology.
in terms of production capacity, Li Bin said that Hefei factory reached the full supply chain capacity of 4500-5000 units per shift in a single month at the end of August and the beginning of September. “The purpose of increasing production capacity is to cope with strong demand. The collection cycle of es8 is relatively long, and many orders have been squeezed. It takes time for ec6 to produce. Q4 delivery pressure is high, we will be ready for the full supply chain capacity at the end of August and the beginning of September. ”
in terms of separation of vehicle and electricity business, Li Bin disclosed that significant progress has been made in the innovative business model of battery as a service. “We have completed all the work of product announcement and certification required for the separate sale of complete vehicle and battery, and the first baas model vehicle has also completed the process verification of insurance, loan and license plate. This is a major breakthrough in technology and business model innovation of Weilai. At present, we are still in the final preparatory work of officially providing baas mode service, and will officially release the implementation plan in the third quarter. ”
Li Bin said that after the relevant laws and regulations on battery as a service were formally passed, users can really buy cars and rent batteries, which means that Weilai can give users lower down payment and monthly supply, which is conducive to promoting sales.
Li Bin also said that the preparation of the battery assets company was expected to be completed in August. Weilai would not be a major shareholder and the company would not affect its balance sheet. The company will hold battery assets, which is groundbreaking in the industry and may be helpful to Weilai’s gross profit. Li Huaibin said that there is still much room to increase the production capacity of 8880000 cars in Jianghuai under the condition that there is still too much space to invest in the current 8880000 car factory. Therefore, Weilai is not in urgent need of building the second factory immediately. The planning work of the second factory is already in progress according to the product development progress, which does not necessarily have to be built by Weilai. At present, Weilai is preparing more production capacity for the products to be mass produced in 2022.
in terms of sales of new energy vehicles, Li Bin said that according to the current point price of new energy vehicles, the sales of new energy vehicles are expected to earn 120 million yuan this year. The new energy vehicle points plan will be sold in the third and fourth quarters, and this part of revenue will be reflected in the improvement of comprehensive gross profit. “At present, China’s point trading has practical significance, and the government also hopes to promote the new energy industry through this trading mechanism. If the point price continues to rise, it will contribute to our comprehensive gross profit. ”
affected by the financial report, Weilai rose by more than 10% before the market. At the beginning of the U.S. stock market, Weilai’s share price was still rising. As of the time of publication, Weilai’s share price was up 8.52% to US $15.42/share.