Cost of sales was RMB9.23 billion in the six months ended June 30, 2023, representing a decrease
of 29.9% from RMB13.17 billion in the six months ended June 30, 2022. The year-over-year decrease was mainly in line with vehicle deliveries as described above, offset by the inventory write-downs and losses on inventory purchase commitments
amounting to RMB0.20 billion related to the model G3i as management lowered its forecasted sales due to stronger-than-expected market demands for newly launched vehicle models.
Gross margin was negative 1.4% in the six months ended June 30, 2023, compared with 11.6% in the six months ended June 30, 2022.
Vehicle margin was negative 5.9% in the six months ended June 30, 2023, compared with 9.7% in the six months ended June 30, 2022. The
year-over-year decrease was explained by (i) the inventory write-downs and losses on inventory purchase commitments related to the G3i, with a negative impact of 2.5 percentage points on vehicle margin in the six months ended June 30,
2023, and (ii) increased sales promotions, and the expiry of new energy vehicle subsidies mentioned above.
Research and development expenses
were RMB2.66 billion in the six months ended June 30, 2023, representing an increase of 7.1% from RMB2.49 billion in the six months ended June 30, 2022. The year-over-year increase was mainly due to higher expenses related to the
development of new vehicle models as the Company expanded its product portfolio to support future growth.
Selling, general and administrative expenses
were RMB2.93 billion in the six months ended June 30, 2023, representing a decrease of 11.4% from RMB3.31 billion in the six months ended June 30, 2022. The year-over-year decrease was primarily attributable to the reduction in
commission paid to the franchised stores and lower marketing and advertising expenses.
Loss from operations was RMB5.68 billion in the six months
ended June 30, 2023, compared with RMB4.01 billion in the six months ended June 30, 2022.
Non-GAAP loss from operations, which excludes
share-based compensation expenses, was RMB5.42 billion in the six months ended June 30, 2023, compared with RMB3.60 billion in the six months ended June 30, 2022.
Net loss was RMB5.14 billion in the six months ended June 30, 2023, compared with RMB4.40 billion in the six months ended June 30, 2022.
Non-GAAP net loss, which excludes share-based compensation expenses, was RMB4.88 billion in the six months ended June 30, 2023, compared with
RMB3.99 billion in the six months ended June 30, 2022.
Net loss attributable to ordinary shareholders of XPENG was RMB5.14 billion in the six
months ended June 30, 2023, compared with RMB4.40 billion in the six months ended June 30, 2022.
Non-GAAP net loss attributable to ordinary
shareholders of XPENG, which excludes share- based compensation expenses, was RMB4.88 billion in the six months ended June 30, 2023, compared with RMB3.99 billion in the six months ended June 30, 2022.
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