Chinese Tech Companies Report Strong Q2 2024 Financial Results

ZEEKR Reports Second Quarter 2024 Unaudited Financial Results - ZEEKR Intelligent Tech (NYSE:ZK)

HANGZHOU, China, Aug. 21, 2024 /PRNewswire/ -- ZEEKR Intelligent Technology Holding Limited ("ZEEKR" or the "Company") ZK, a fast-growing intelligent battery electric vehicle ("BEV") technology company, today announced its unaudited financial results for the second quarter ended June 30, 2024. Operating Highlights for the Second Quarter of 2024 Total vehicle deliveries were 54,811 units for the second quarter of 2024, representing a 100% year-over-year increase. Deliveries 2024 Q2 2024 Q1 2023 Q4 2023 Q3 54,811 33,059 39,657 36,395 Deliveries 2023 Q2 2023 Q1 2022 Q4 2022 Q3 27,399 15,234 32,467 20,464 Financial Highlights for the Second Quarter of 2024 Vehicle sales were RMB13,438.2 million (US$1,849.2 million)[1] for the second quarter of 2024, representing an increase of 59.0% from the second quarter of 2023 and an increase of 64.4% from the first quarter of 2024.Vehicle margin[2] was 14.2% for the second quarter of 2024, compared with 13.6% for the second quarter of 2023 and 14.0% for the first quarter of 2024.Total revenues were RMB20,040.1 million (US$2,757.6 million) for the second quarter of 2024, representing an increase of 58.4% from the second quarter of 2023 and an increase of 36.0% from the first quarter of 2024.Gross profit was RMB3,449.8 million (US$474.7 million) for the second quarter of 2024, representing an increase of 122.5% from the second quarter of 2023 and an increase of 98.3% from the first quarter of 2024.Gross margin was 17.2% for the second quarter of 2024, compared with 12.3% for the second quarter of 2023 and 11.8% for the first quarter of 2024.Loss from operations was RMB1,721.0 million (US$236.8 million) for the second quarter of 2024, representing an increase of 25.5% from the second quarter of 2023 and a decrease of 17.5% from the first quarter of 2024. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP)[3] was RMB777.1 million (US$106.9 million) for the second quarter of 2024, representing a decrease of 41.7% from the second quarter of 2023 and a decrease of 62.7% from the first quarter of 2024.Net loss was RMB1,808.8 million (US$248.9 million) for the second quarter of 2024, representing an increase of 28.7% from the second quarter of 2023 and a decrease of 10.5% from the first quarter of 2024. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB864.9 million (US$119.0 million) for the second quarter of 2024, representing a decrease of 36.8% from the second quarter of 2023 and a decrease of 57.2% from the first quarter of 2024. [1] All conversions from Renminbi("RMB") to U.S. dollars ("US$") are made at an exchange rate of RMB7.2672 to US$1.00, set forth in the H.10 statistical release of the Federal Reserve Board on June 28, 2024. [2] Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of revenues derived from vehicle sales only. [3] The Company's non-GAAP financial measures exclude share-based compensation expenses. See "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement. Key Financial Results (in RMB millions, except for percentages) 2024 Q2 2024 Q1 2023 Q2 % Change i YoY QoQ Vehicle sales 13,438.2 8,174.1 8,450.2 59.0 % 64.4 % Vehicle margin 14.2 % 14.0 % 13.6 % 0.6pts 0.2pts Total revenues 20,040.1 14,736.8 12,649.7 58.4 % 36.0 % Gross profit 3,449.8 1,739.4 1,550.3 122.5 % 98.3 % Gross margin 17.2 % 11.8 % 12.3 % 4.9pts 5.4pts Loss from operations (1,721.0) (2,086.9) (1,371.0) 25.5 % (17.5) % Non-GAAP loss from operations (777.1) (2,084.2) (1,333.5) (41.7) % (62.7) % Net loss (1,808.8) (2,022.1) (1,405.2) 28.7 % (10.5) % Non-GAAP net loss (864.9) (2,019.4) (1,367.7) (36.8) % (57.2) % i Except for vehicle margin and gross margin, absolute changes instead of percentage changes are presented. Recent Developments Delivery Update In July 2024, the Company delivered 15,655 vehicles, representing an increase of 30% from July 2023. New Model Launches On August 13, 2024, ZEEKR launched its updated ZEEKR 001 and upscale sedan models, both featuring the latest proprietary ADAS and AI OS technologies. The updated upscale sedan model, now equipped with enhanced batteries, can charge from 10% to 80% in just 10 to 11 minutes using ZEEKR's ultra-charging piles. On July 19, 2024, ZEEKR officially introduced its luxury flagship MPV, the all-new ZEEKR 009, with deliveries starting on July 22, 2024. Boasting an 800V battery electric platform and a Qilin 5C battery, the all-new ZEEKR 009 accelerates from 0 to 100 km/h in 3.9 seconds. It delivers a CLTC range of 702km with its 108kWh battery and a maximum CLTC range of 900km with the optional 140kWh battery. In July, ZEEKR unveiled its mid-large SUV, the ZEEKR 7X, revealing further insights into its original "Hidden Energy" design. The ZEEKR 7X, with a wheelbase of 2,925mm, a length of 4,825mm, and a width of 1,930mm, exemplifies ZEEKR's commitment to product excellence. CEO and CFO Comments "In the second quarter of 2024, we substantially improved our financial and operational performance, despite facing numerous challenges and economic headwinds. We delivered 54,811 vehicles, marking remarkable 100% year-over-year growth and a 66% increase quarter-over-quarter," Mr. Andy An, ZEEKR's chief executive officer commented. "In addition to accelerating deliveries, we successfully launched several new models during the second quarter. The innovative technologies and distinctive design elements embedded in these vehicles have set new industry benchmarks and quickly garnered exceptional market responses. Furthermore, our accelerated global expansion and effective marketing efforts enabled us to extend our customer base across a broader spectrum, driving a surge in sales and enhancing our brand. As we progress through the second half of 2024, our core objectives remain unchanged to continuously invest in research and development, ensuring we stay at the forefront of technological innovation to drive our business forward and deliver long-term value for our shareholders." "We are pleased to report another strong quarter, with total revenues reaching RMB20 billion, representing a 58.4% year-over-year increase and 36.0% growth quarter-over-quarter. We made significant strides in optimizing costs while maintaining high-quality delivery standards, contributing to sustainable margin and profitability improvement," Mr. Jing Yuan, ZEEKR's chief financial officer added. "Moving forward, we remain dedicated to improving product quality, expanding our market share and propelling the sustainable growth of our business." Financial Results for the Second Quarter of 2024 Revenues Total revenues were RMB20,040.1 million (US$2,757.6 million) for the second quarter of 2024, representing an increase of 58.4% from RMB12,649.7 million for the second quarter of 2023 and an increase of 36.0% from RMB14,736.8 million for the first quarter of 2024. Revenues from vehicle sales were RMB13,438.2 million (US$1,849.2 million) for the second quarter of 2024, representing an increase of 59.0% from RMB8,450.2 million for the second quarter of 2023, and an increase of 64.4% from RMB8,174.1 million for the first quarter of 2024. The year-over-year increase was due to the increased sales volume of ZEEKR vehicles, partially offset by the lower average selling price due to the different product mix and pricing strategy changes between the two quarters. The quarter-over-quarter increase was mainly attributable to the increased sales volume of ZEEKR vehicles. Revenues from sales of batteries and other components were RMB5,299.2 million (US$729.2 million) for the second quarter of 2024, representing an increase of 36.1% from RMB3,894.3 million for the second quarter of 2023 and a decrease of 16.1% from RMB6,318.5 million for the first quarter of 2024. The year-over-year increase was mainly driven by higher sales volume of battery packs and electric drives, as well as the growth of battery components sales overseas. The quarter-over-quarter decrease was mainly attributable to the lower sales of battery modules in the domestic market compared with the prior period. Revenues from research and development service and other services were RMB1,302.6 million (US$179.2 million) for the second quarter of 2024, representing an increase of 326.8% from RMB305.2 million for the second quarter of 2023 and an increase of 433.6% from RMB244.1 million for the first quarter of 2024. The year-over-year and quarter-over-quarter increases were mainly due to the increased sales of research and development services to related parties. Cost of Revenues and Gross Margin Cost of revenues was RMB16,590.2 million (US$2,282.9 million) for the second quarter of 2024, representing an increase of 49.5% from RMB11,099.3 million for the second quarter of 2023 and an increase of 27.6% from RMB12,997.4 million for the first quarter of 2024. Gross profit was RMB3,449.8 million (US$474.7 million) for the second quarter of 2024, representing an increase of 122.5% from RMB1,550.3 million for the second quarter of 2023 and an increase of 98.3% from RMB1,739.4 million for the first quarter of 2024. Gross margin was 17.2% for the second quarter of 2024, compared with 12.3% for the second quarter of 2023 and 11.8% for the first quarter of 2024. The year-over-year increase and quarter-over-quarter increase were mainly attributable to the increased margins on batteries and other components. Vehicle margin was 14.2% for the second quarter of 2024, compared with 13.6% for the second quarter of 2023 and 14.0% for the first quarter of 2024. The year-over-year increase was primarily attributed to procurement savings as the cost of auto parts and materials decreased, partly offset by the lower average selling price of ZEEKR vehicles. The quarter-over-quarter increase was mainly due to the change in product mix. Vehicle margin remained generally stable in the second quarter of 2024. Operating Expenses Research and development expenses were RMB2,623.5 million (US$361.0 million) for the second quarter of 2024, representing an increase of 89.6% from RMB1,383.5 million for the second quarter of 2023 and an increase of 36.3% from RMB1,925.3 million for the first quarter of 2024. The year-over-year increase was mainly attributable to increased employee compensation due to an increased number of research and development staff and share-based compensation expenses recognized from the share-based awards granted to employees, including a one-off large amount recognized in the second quarter, conditional on the Company's initial public offering. The quarter-over-quarter increase was mainly attributable to increased employee compensation due to the aforementioned share-based compensation expenses. Selling, general and administrative expenses were RMB2,604.7 million (US$358.4 million) for the second quarter of 2024, representing an increase of 61.3% from RMB1,614.3 million for the second quarter of 2023 and an increase of 33.5% from RMB1,951.5 million for the first quarter of 2024. The year-over-year increase was mainly due to increased employee compensation due to share-based compensation expenses recognized from the share-based awards granted to employees, including a one-off large amount recognized in the second quarter, conditional on the Company's initial public offering, and increased expenses related to the expansion of offline channels in China and overseas. The quarter-over-quarter increase was mainly due to increased employee compensation due to the aforementioned share-based compensation expenses. Loss from Operations Loss from operations was RMB1,721.0 million (US$236.8 million) for the second quarter of 2024, representing an increase of 25.5% from RMB1,371.0 million for the second quarter of 2023 and a decrease of 17.5% from RMB2,086.9 million for the first quarter of 2024. Non-GAAP loss from operations, which excludes share-based compensation expenses from loss from operations, was RMB777.1 million (US$106.9 million) for the second quarter of 2024, representing a decrease of 41.7% from RMB1,333.5 million for the second quarter of 2023 and a decrease of 62.7% from RMB2,084.2 million for the first quarter of 2024. Net Loss and Net Loss Per Share Net loss was RMB1,808.8 million (US$248.9 million) for the second quarter of 2024, representing an increase of 28.7% from RMB1,405.2 million for the second quarter of 2023 and a decrease of 10.5% from RMB2,022.1 million for the first quarter of 2024. Non-GAAP net loss, which excludes share-based compensation expenses from net loss, was RMB864.9 million (US$119.0 million) for the second quarter of 2024, representing a decrease of 36.8% from RMB1,367.7 million for the second quarter of 2023 and a decrease of 57.2% from RMB2,019.4 million for the first quarter of 2024. Net loss attributable to ordinary shareholders of ZEEKR was RMB2,190.2 million (US$301.4 million) for the second quarter of 2024, representing an increase of 47.0% from RMB1,489.7 million for the second quarter of 2023 and an increase of 8.7% from RMB2,014.3 million for the first quarter of 2024. Non-GAAP net loss attributable to ordinary shareholders of ZEEKR, which excludes share-based compensation expenses from net loss attributable to ordinary shareholders, was RMB1,246.3 million (US$171.5 million) for the second quarter of 2024, representing a decrease of 14.2% from RMB1,452.2 million for the second quarter of 2023 and a decrease of 38.0% from RMB2,011.6 million for the first quarter of 2024. Basic and diluted net loss per share attributed to ordinary shareholders were RMB0.95 (US$0.13) each for the second quarter of 2024, compared with RMB0.74 each for the second quarter of 2023 and RMB1.01 each for the first quarter of 2024. Non-GAAP basic and diluted net loss per share attributed to ordinary shareholders were both RMB0.54 (US$0.07) each for the second quarter of 2024, compared with RMB0.73 each for the second quarter of 2023 and RMB1.01 each for the first quarter of 2024. Basic and diluted net loss per American Depositary Share ("ADS[4]") attributed to ordinary shareholders were RMB9.51 (US$1.31) each for the second quarter of 2024. Non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders were RMB5.41 (US$0.75) each for the second quarter of 2024. [4] Each ADS represents ten ordinary shares. Balance Sheets Cash and cash equivalents and restricted cash was RMB8,048.1 million (US$1,107.5 million) as of June 30, 2024. Conference Call The Company's management will host an earnings conference call on Wednesday, August 21, 2024, at 8:00 A.M. U.S. Eastern Time (8:00 P.M. Beijing/Hong Kong Time on the same day). All participants who wish to join the call are requested to complete the online registration using the link provided below. After registration, each participant will receive by email a set of dial-in numbers, a passcode and a unique access PIN to join the conference call. Participants may pre-register at any time, including up to and after the call start time. Participant Online Registration: https://dpregister.com/sreg/10191577/fd3dea2392 A live webcast of the conference call will be available on the Company's investor relations website at https://ir.zeekrlife.com/. About ZEEKR ZEEKR is a fast-growing intelligent BEV technology company. The Company aspires to lead the electrification, intelligentization, and innovation of the automobile industry through the development and sales of next-generation premium BEVs and technology-driven solutions. Incorporated in March 2021, ZEEKR has focused on innovative BEV architecture, hardware, software, and the application of new technologies. Our diverse product lineup spans a range of vehicle models, including shooting brakes, MPVs and upscale sedans, all meticulously designed to cater to the evolving needs of our customer needs. With a mission to create the ultimate mobility experience through technology and solutions, ZEEKR's efforts are backed by strong in-house R&D capabilities, a deep understanding of products, high operational flexibility, and a flat, efficient organizational structure. Together, these features enable fast product development, launch, and iteration, as well as the creation of a series of customer-oriented products and go-to-market strategies. For more information, please visit https://ir.zeekrlife.com/. Non-GAAP Financial Measures The Company uses non-GAAP financial measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic and diluted net loss per ordinary share attributed to ordinary shareholders, non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company's operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and non-GAAP Results" set forth in this announcement. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.2672 to US$1.00, the exchange rate on June 28, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "future," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law. For Investor Enquiries ZEEKR Investor Relations Email: ir@zeekrlife.com For Media Enquiries ZEEKR Media Relations Email: Globalcomms@zeekrlife.com ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) As of December 31 June 30 June 30 2023 2024 2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 3,260,670 5,495,539 756,211 Restricted cash 844,079 2,552,561 351,244 Notes receivable 487,851 1,502,984 206,817 Accounts receivable 1,104,450 1,206,222 165,982 Inventories 5,228,689 4,267,195 587,186 Amounts due from related parties 7,256,861 7,145,521 983,256 Prepayments and other current assets 2,294,508 3,062,405 421,401 Total current assets 20,477,108 25,232,427 3,472,097 Property, plant and equipment, net 2,914,274 3,320,738 456,949 Intangible assets, net 410,912 554,479 76,299 Land use rights, net 51,755 62,539 8,606 Operating lease right-of-use assets 2,443,545 2,319,631 319,192 Deferred tax assets 86,395 188,174 25,894 Long-term investments 459,794 638,097 87,805 Other non-current assets 273,717 362,830 49,927 Total non-current assets 6,640,392 7,446,488 1,024,672 TOTAL ASSETS 27,117,500 32,678,915 4,496,769 ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amounts in thousands) As of December 31 June 30 June 30 2023 2024 2024 RMB RMB US$ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term Borrowings - 30,000 4,128 Accounts payable 4,104,717 4,293,914 590,862 Notes payable 5,504,945 10,662,344 1,467,187 Amounts due to related parties 16,355,902 13,770,683 1,894,909 Income tax payable 108,083 239,300 32,929 Accruals and other current liabilities 6,243,956 8,697,194 1,196,775 Total current liabilities 32,317,603 37,693,435 5,186,790 Long-term borrowings - 414,680 57,062 Operating lease liabilities, non-current 1,807,159 1,662,850 228,816 Amounts due to related parties, non-current 1,100,000 450,000 61,922 Other non-current liabilities 563,001 505,010 69,492 Deferred tax liability 8,337 8,149 1,121 Total non-current liabilities 3,478,497 3,040,689 418,413 TOTAL LIABILITIES 35,796,100 40,734,124 5,605,203 SHAREHOLDERS' EQUITY Ordinary shares 2,584 3,361 462 Convertible preferred shares 362 - - Shares subscription receivable - (66) (9) Additional paid-in capital 11,213,798 15,635,867 2,151,567 Accumulated deficits (20,865,686) (25,070,195) (3,449,774) Accumulated other comprehensive income 17,555 49,456 6,806 Total ZEEKR shareholders' deficit (9,631,387) (9,381,577) (1,290,948) Non-controlling interest 952,787 1,326,368 182,514 TOTAL SHAREHOLDERS' DEFICIT (8,678,600) (8,055,209) (1,108,434) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 27,117,500 32,678,915 4,496,769 ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted) Three Months Ended June 30 March 31 June 30 June 30 2023 2024 2024 2024 RMB RMB RMB US$ Revenues: Vehicle sales 8,450,177 8,174,117 13,438,241 1,849,164 Sales of batteries and other components 3,894,307 6,318,535 5,299,171 729,190 Research and development service and other services 305,190 244,100 1,302,639 179,249 Total revenues 12,649,674 14,736,752 20,040,051 2,757,603 Cost of revenues: Vehicle sales (7,300,487) (7,026,741) (11,533,020) (1,586,996) Sales of batteries and other components (3,606,782) (5,883,360) (4,223,452) (581,166) Research and development service and other services (192,079) (87,301) (833,756) (114,729) Total cost of revenues (11,099,348) (12,997,402) (16,590,228) (2,282,891) Gross profit 1,550,326 1,739,350 3,449,823 474,712 Operating expenses: Research and development expenses (1,383,501) (1,925,278) (2,623,471) (361,002) Selling, general and administrative expenses (1,614,305) (1,951,530) (2,604,665) (358,414) Other operating income, net 76,488 50,525 57,287 7,883 Total operating expenses (2,921,318) (3,826,283) (5,170,849) (711,533) Loss from operations (1,370,992) (2,086,933) (1,721,026) (236,821) Interest expense (87,364) (10,700) (23,396) (3,219) Interest income 18,512 20,192 42,537 5,853 Other income/(expense), net 27,040 (29,658) (7,809) (1,075) Loss before income tax expense and share of losses in equity method investments (1,412,804) (2,107,099) (1,709,694) (235,262) Share of income/(loss) in equity method investments (11,090) 90,882 85,852 11,814 Income tax expense 18,678 (5,889) (184,980) (25,454) Net loss (1,405,216) (2,022,106) (1,808,822) (248,902) Less: income/(loss) attributable to non- controlling interest 84,481 (7,782) 381,363 52,477 Net loss attributable to shareholders of ZEEKR (1,489,697) (2,014,324) (2,190,185) (301,379) ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (CONTINUED) (Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted) Three Months Ended June 30 March 31 June 30 June 30 2023 2024 2024 2024 RMB RMB RMB US$ Net loss per share attributed to ordinary shareholders: Basic and diluted (0.74) (1.01) (0.95) (0.13) Weighted average shares used in calculating net loss per share: Basic and diluted 2,000,000,000 2,000,000,000 2,301,866,887 2,301,866,887 Net loss per ADS attributed to ordinary shareholders: Basic and diluted - - (9.51) (1.31) Weighted average ADS used in calculating net loss per ADS: Basic and diluted - - 230,186,689 230,186,689 Net loss (1,405,216) (2,022,106) (1,808,822) (248,902) Other comprehensive income/(loss), net of tax of nil: Foreign currency translation adjustments 48,240 (42,769) 74,670 10,275 Comprehensive loss (1,356,976) (2,064,875) (1,734,152) (238,627) Less: comprehensive income/(loss) attributable to non-controlling interest 84,481 (7,782) 381,363 52,477 Comprehensive loss attributable to shareholders of ZEEKR (1,441,457) (2,057,093) (2,115,515) (291,104) ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted) Six Months Ended June 30 June 30 June 30 2023 2024 2024 RMB RMB US$ Revenues: Vehicle sales 13,175,373 21,612,358 2,973,959 Sales of batteries and other components 7,365,776 11,617,706 1,598,650 Research and development service and other services 728,933 1,546,739 212,838 Total revenues 21,270,082 34,776,803 4,785,447 Cost of revenues: Vehicle sales (11,549,164) (18,559,761) (2,553,908) Sales of batteries and other components (7,010,648) (10,106,812) (1,390,744) Research and development service and other services (477,474) (921,057) (126,742) Total cost of revenues (19,037,286) (29,587,630) (4,071,394) Gross profit 2,232,796 5,189,173 714,053 Operating expenses: Research and development expenses (3,188,554) (4,548,749) (625,929) Selling, general and administrative expenses (2,898,733) (4,556,195) (626,953) Other operating income, net 134,296 107,812 14,835 Total operating expenses (5,952,991) (8,997,132) (1,238,047) Loss from operations (3,720,195) (3,807,959) (523,994) Interest expense (192,165) (34,096) (4,692) Interest income 41,243 62,729 8,632 Other income/(expense), net 38,147 (37,467) (5,155) Loss before income tax expense and share of losses in equity method investments (3,832,970) (3,816,793) (525,209) Share of income/(loss) in equity method investments (55,240) 176,734 24,319 Income tax expense 17,632 (190,869) (26,264) Net loss (3,870,578) (3,830,928) (527,154) Less: income attributable to non-controlling interest 13,452 373,581 51,406 Net loss attributable to shareholders of ZEEKR (3,884,030) (4,204,509) (578,560) ZEEKR INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (CONTINUED) (Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted) Six Months Ended June 30 June 30 June 30 2023 2024 2024 RMB RMB US$ Net loss per share attributed to ordinary shareholders: Basic and diluted (1.94) (1.95) (0.27) Weighted average shares used in calculating net loss per share: Basic and diluted 2,000,000,000 2,150,933,444 2,150,933,444 Net loss per ADS attributed to ordinary shareholders: Basic and diluted - (19.55) (2.69) Weighted average ADS used in calculating net loss per ADS: Basic and diluted - 215,093,344 215,093,344 Net loss (3,870,578) (3,830,928) (527,154) Other comprehensive income, net of tax of nil: Foreign currency translation adjustments 46,321 31,901 4,390 Comprehensive loss (3,824,257) (3,799,027) (522,764) Less: comprehensive income attributable to non-controlling interest 13,452 373,581 51,406 Comprehensive loss attributable to shareholders of ZEEKR (3,837,709) (4,172,608) (574,170) ZEEKR INC. UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted) Three Months Ended June 30 March 31 June 30 June 30 2023 2024 2024 2024 RMB RMB RMB US$ Loss from operations (1,370,992) (2,086,933) (1,721,026) (236,821) Share-based compensation expenses 37,471 2,734 943,921 129,888 Non-GAAP loss from operations (1,333,521) (2,084,199) (777,105) (106,933) Net loss (1,405,216) (2,022,106) (1,808,822) (248,902) Share-based compensation expenses 37,471 2,734 943,921 129,888 Non-GAAP net loss (1,367,745) (2,019,372) (864,901) (119,014) Net loss attributable to ordinary shareholders (1,489,697) (2,014,324) (2,190,185) (301,379) Share-based compensation expenses 37,471 2,734 943,921 129,888 Non-GAAP net loss attributable to ordinary shareholders of ZEEKR (1,452,226) (2,011,590) (1,246,264) (171,491) Weighted average number of ordinary shares used in calculating Non-GAAP net loss per share Basic and diluted 2,000,000,000 2,000,000,000 2,301,866,887 2,301,866,887 Non-GAAP net loss per ordinary share attributed to ordinary shareholders Basic and diluted (0.73) (1.01) (0.54) (0.07) Weighted average number of ADS used in calculating Non-GAAP net loss per ADS Basic and diluted - - 230,186,689 230,186,689 Non-GAAP net loss per ADS attributed to ordinary shareholders Basic and diluted - - (5.41) (0.75) ZEEKR INC. UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amounts in thousands, except share and per share data and otherwise noted) Six Months Ended June 30 June 30 June 30 2023 2024 2024 RMB RMB US$ Loss from operations (3,720,195) (3,807,959) (523,994) Share-based compensation expenses 70,199 946,655 130,264 Non-GAAP loss from operations (3,649,996) (2,861,304) (393,730) Net loss (3,870,578) (3,830,928) (527,154) Share-based compensation expenses 70,199 946,655 130,264 Non-GAAP net loss (3,800,379) (2,884,273) (396,890) Net loss attributable to ordinary shareholders (3,884,030) (4,204,509) (578,560) Share-based compensation expenses 70,199 946,655 130,264 Non-GAAP net loss attributable to ordinary shareholders of ZEEKR (3,813,831) (3,257,854) (448,296) Weighted average number of ordinary shares used in calculating Non-GAAP net loss per share Basic and diluted 2,000,000,000 2,150,933,444 2,150,933,444 Non-GAAP net loss per ordinary share attributed to ordinary shareholders Basic and diluted (1.91) (1.51) (0.21) Weighted average number of ADS used in calculating Non-GAAP net loss per ADS Basic and diluted - 215,093,344 215,093,344 Non-GAAP net loss per ADS attributed to ordinary shareholders Basic and diluted - (15.15) (2.08) View original content:https://www.prnewswire.com/news-releases/zeekr-reports-second-quarter-2024-unaudited-financial-results-302227070.html SOURCE ZEEKR Intelligent Technology Holding Limited Market News and Data brought to you by Benzinga APIs

XPENG Reports Second Quarter 2024 Unaudited Financial Results - XPeng (NYSE:XPEV)

Cash and cash equivalents, restricted cash, short-term investments and time deposits were RMB37.33 billion (US$5.14 billion) as of June 30, 2024 Quarterly total revenues were RMB8.11 billion, a 60.2% increase over the same period of 2023Quarterly gross margin was 14.0%, an increase of 17.9 percentage points over the same period of 2023 GUANGZHOU, China, Aug. 20, 2024 (GLOBE NEWSWIRE) -- XPeng Inc. (("XPENG" or the "Company, NYSE:XPEV), a leading Chinese smart electric vehicle ("Smart EV") company, today announced its unaudited financial results for the three months ended June 30, 2024. Operational and Financial Highlights for the Three Months Ended June 30, 2024 2024Q22024Q12023Q42023Q32023Q22023Q1Total deliveries30,20721,82160,15840,00823,20518,230 Total deliveries of vehicles were 30,207 for the second quarter of 2024, representing an increase of 30.2% from 23,205 in the corresponding period of 2023. XPENG's physical sales network had a total of 611 stores, covering 185 cities as of June 30, 2024. XPENG self-operated charging station network reached 1,298 stations, including 442 XPENG S4 ultra-fast charging stations as of June 30, 2024. Total revenues were RMB8.11 billion (US$1.12 billion) for the second quarter of 2024, representing an increase of 60.2% from the same period of 2023, and an increase of 23.9% from the first quarter of 2024. Revenues from vehicle sales were RMB6.82 billion (US$0.94 billion) for the second quarter of 2024, representing an increase of 54.1% from the same period of 2023, and an increase of 23.0% from the first quarter of 2024. Gross margin was 14.0% for the second quarter of 2024, compared with negative 3.9% for the same period of 2023 and 12.9% for the first quarter of 2024. Vehicle margin, which is gross profit or loss of vehicle sales as a percentage of vehicle sales revenue, was 6.4% for the second quarter of 2024, compared with negative 8.6% for the same period of 2023 and 5.5% for the first quarter of 2024. Net loss was RMB1.28 billion (US$0.18 billion) for the second quarter of 2024, compared with RMB2.80 billion for the same period of 2023 and RMB1.37 billion for the first quarter of 2024. Excluding share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, non-GAAP net loss was RMB1.22 billion (US$0.17 billion) for the second quarter of 2024, compared with RMB2.67 billion for the same period of 2023 and RMB1.41 billion for the first quarter of 2024. Net loss attributable to ordinary shareholders of XPENG was RMB1.28 billion (US$0.18 billion) for the second quarter of 2024, compared with RMB2.80 billion for the same period of 2023 and RMB1.37 billion for the first quarter of 2024. Excluding share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, non-GAAP net loss attributable to ordinary shareholders of XPENG was RMB1.22 billion (US$0.17 billion) for the second quarter of 2024, compared with RMB2.67 billion for the same period of 2023 and RMB1.41 billion for the first quarter of 2024. Basic and diluted net loss per American depositary share (ADS) were both RMB1.36 (US$0.19) and basic and diluted net loss per ordinary share were both RMB0.68 (US$0.09) for the second quarter of 2024. Each ADS represents two Class A ordinary shares. Non-GAAP basic and diluted net loss per ADS were both RMB1.29 (US$0.18) and non-GAAP basic and diluted net loss per ordinary share were both RMB0.65 (US$0.09) for the second quarter of 2024. Cash and cash equivalents, restricted cash, short-term investments and time deposits were RMB37.33 billion (US$5.14 billion) as of June 30, 2024, compared with RMB41.40 billion as of March 31, 2024. Time deposits include restricted short-term deposits, short-term deposits, restricted long-term deposits, current portion and non-current portion of long-term deposits. Key Financial Results (in RMB billions, except for percentage) For the Three Months Ended% Changei June 30,March 31,June 30, 202420242023YoYQoQ Vehicle sales6.825.544.4254.1%23.0%Vehicle margin6.4%5.5%-8.6%15.0 pts0.9 ptsTotal revenues8.116.555.0660.2%23.9%Gross profit (loss)1.140.84(0.20)675.4%34.6%Gross margin14.0%12.9%-3.9%17.9 pts1.1 ptsNet loss1.281.372.80-54.2%-6.1%Non-GAAP net loss1.221.412.67-54.3%-13.4%Net loss attributable to ordinary shareholders1.281.372.80-54.2%-6.1%Non-GAAP net loss attributable to ordinary shareholders1.221.412.67-54.3%-13.4%Comprehensive loss attributable to ordinary shareholders1.201.341.93-37.9%-10.7% i Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented Management Commentary "Starting from the launch of MONA M03 in August, we are about to enter into a strong product cycle. In the next 3 years, we will have a large number of new models and facelift versions in the pipeline for market launch," said Mr. Xiaopeng He, Chairman and CEO of XPENG. "I believe that through a powerful product cycle and more efficient marketing, the technological advantages we have accumulated through a long period of time and the breakthroughs we have achieved in AI will be transformed into sales growth in China and the international market. We are confident that we will return to the track of fast growth, and we resolve on winning the industry competition for smart technologies and global expansion." "With cost reduction through technical improvement and revenues from technical collaboration in our strategic partnership with Volkswagen, our gross profit margin in the second quarter of 2024 has further increased to 14.0%," said Dr. Hongdi Brian Gu, Honorary Vice Chairman and Co-President of XPENG. "I expect as the big product cycle drives our sales growth in the global market, our economy of scale, operating efficiency and cash flow will significantly improve." Recent Developments Deliveries in July 2024 Total deliveries were 11,145 vehicles in July 2024. As of July 31, 2024, year-to-date total deliveries were 63,173 vehicles. Entry into the Master Agreement on E/E Architecture Technical Collaboration with the Volkswagen Group On July 22, 2024, XPENG and the Volkswagen Group ("Volkswagen") announced the entry of a Master Agreement ("Master Agreement") on technical collaboration with respect to electrical/electronic architecture ("E/E Architecture"), which solidifies both parties' commitment to jointly develop industry-leading E/E Architecture for all locally produced vehicles based on Volkswagen's China Main Platform (CMP) and Modular Electric Drive Matrix (MEB) platform. For details, please refer to the announcement of the Company dated July 22, 2024. OTA update of XOS 5.2.0 On July 30, 2024, XPENG fully rolled out its XOS 5.2.0 to XPENG users via the Over-the-Air ("OTA") update. XNGP has been leveled up from "available nationwide" to "smooth experience anywhere", offering users nationwide access to the enhanced XNGP on all public roads with navigation maps, regardless of city, route, or road condition. Unaudited Financial Results for the Three Months Ended June 30, 2024 Total revenues were RMB8.11 billion (US$1.12 billion) for the second quarter of 2024, representing an increase of 60.2% from RMB5.06 billion for the same period of 2023 and an increase of 23.9% from RMB6.55 billion for the first quarter of 2024. Revenues from vehicle sales were RMB6.82 billion (US$0.94 billion) for the second quarter of 2024, representing an increase of 54.1% from RMB4.42 billion for the same period of 2023, and an increase of 23.0% from RMB5.54 billion for the first quarter of 2024. The year-over-year and quarter-over-quarter increases were mainly attributable to higher deliveries. Revenues from services and others were RMB1.29 billion (US$0.18 billion) for the second quarter of 2024, representing an increase of 102.5% from RMB0.64 billion for the same period of 2023 and an increase of 28.8% from RMB1.00 billion for the first quarter of 2024. The year-over-year and quarter-over-quarter increases were mainly attributable to higher sales from maintenance services, which was in line with higher accumulated vehicle sales, and the increased sales from technical research and development services related to the platform and software strategic technical collaboration with the Volkswagen Group. Cost of sales was RMB6.98 billion (US$0.96 billion) for the second quarter of 2024, representing an increase of 32.6% from RMB5.26 billion for the same period of 2023 and an increase of 22.3% from RMB5.70 billion for the first quarter of 2024. The year-over-year and quarter-over-quarter increases were mainly in line with vehicle deliveries as described above, respectively. Gross margin was 14.0% for the second quarter of 2024, compared with negative 3.9% for the same period of 2023 and 12.9% for the first quarter of 2024. Vehicle margin was 6.4% for the second quarter of 2024, compared with negative 8.6% for the same period of 2023 and 5.5% for the first quarter of 2024. The year-over-year increase was primarily attributable to the cost reduction and the improvement in product mix of models. The quarter-over-quarter increase was primarily attributable to the cost reduction. Services and others margin was 54.3% for the second quarter of 2024, compared with 28.6% for the same period of 2023 and 53.9% for the first quarter of 2024. The year-over-year and quarter-over-quarter increases were primarily attributable to the higher gross margin from the aforementioned revenue from technical research and development services. Research and development expenses were RMB1.47 billion (US$0.20 billion) for the second quarter of 2024, representing an increase of 7.3% from RMB1.37 billion for the same period of 2023 and an increase of 8.6% from RMB1.35 billion for the first quarter of 2024. The year-over-year and quarter-over-quarter increases were 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 RMB1.57 billion (US$0.22 billion) for the second quarter of 2024, representing an increase of 1.9% from RMB1.54 billion for the same period of 2023 and an increase of 13.3% from RMB1.39 billion for the first quarter of 2024. The year-over-year and quarter-over-quarter increases were mainly due to higher commission to the franchised stores and higher marketing, promotional and advertising expenses. Other income, net was RMB0.28 billion (US$0.04 billion) for the second quarter of 2024, representing an increase of 1,454.3% from RMB0.02 billion for the same period of 2023 and an increase of 276.6% from RMB0.07 billion for the first quarter of 2024. The year-over-year and quarter-over-quarter increases were primarily attributable to the increase of government subsidies. Fair value gain on derivative liability relating to the contingent consideration was RMB0.02 billion (US$0.002 billion) for the second quarter of 2024, compared with RMB0.18 billion for the first quarter of 2024. This non-cash gain resulted from the fair value change of the contingent consideration related to the acquisition of DiDi's smart auto business. Loss from operations was RMB1.61 billion (US$0.22 billion) for the second quarter of 2024, compared with RMB3.09 billion for the same period of 2023 and RMB1.65 billion for the first quarter of 2024. Non-GAAP loss from operations, which excludes share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, was RMB1.54 billion (US$0.21 billion) for the second quarter of 2024, compared with RMB2.96 billion for the same period of 2023 and RMB1.69 billion for the first quarter of 2024. Net loss was RMB1.28 billion (US$0.18 billion) for the second quarter of 2024, compared with RMB2.80 billion for the same period of 2023 and RMB1.37 billion for the first quarter of 2024. Non-GAAP net loss, which excludes share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, was RMB1.22 billion (US$0.17 billion) for the second quarter of 2024, compared with RMB2.67 billion for the same period of 2023 and RMB1.41 billion for the first quarter of 2024. Net loss attributable to ordinary shareholders of XPENG was RMB1.28 billion (US$0.18 billion) for the second quarter of 2024, compared with RMB2.80 billion for the same period of 2023 and RMB1.37 billion for the first quarter of 2024. Non-GAAP net loss attributable to ordinary shareholders of XPENG, which excludes share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, was RMB1.22 billion (US$0.17 billion) for the second quarter of 2024, compared with RMB2.67 billion for the same period of 2023 and RMB1.41 billion for the first quarter of 2024. Basic and diluted net loss per ADS were both RMB1.36 (US$0.19) for the second quarter of 2024, compared with RMB3.25 for the second quarter of 2023 and RMB1.45 for the first quarter of 2024. Non-GAAP basic and diluted net loss per ADS were both RMB1.29 (US$0.18) for the second quarter of 2024, compared with RMB3.10 for the second quarter of 2023 and RMB1.49 for the first quarter of 2024. Balance Sheets As of June 30, 2024, the Company had cash and cash equivalents, restricted cash, short-term investments and time deposits of RMB37.33 billion (US$5.14 billion), compared with RMB33.74 billion as of June 30, 2023 and RMB41.40 billion as of March 31, 2024. Business Outlook For the third quarter of 2024, the Company expects: Deliveries of vehicles to be between 41,000 and 45,000, representing a year-over-year increase of approximately 2.5% to 12.5%. Total revenues to be between RMB9.1 billion and RMB9.8 billion, representing a year-over-year increase of approximately 6.7% to 14.9%. The above outlook is based on the current market conditions and reflects the Company's preliminary estimates of market and operating conditions, and customer demand, which are all subject to change. Conference Call The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on August 20, 2024 (8:00 PM Beijing/Hong Kong Time on August 20, 2024). For participants who wish to join the call by phone, please access the link provided below to complete the pre-registration process and dial in 5 minutes prior to the scheduled call start time. Upon registration, each participant will receive dial-in details to join the conference call. Event Title: XPENG Second Quarter 2024 Earnings Conference Call Pre-registration link: https://s1.c-conf.com/diamondpass/10040571-yt6du.html Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.xiaopeng.com. A replay of the conference call will be accessible approximately an hour after the conclusion of the call until August 27, 2024, by dialing the following telephone numbers: United States:+1-855-883-1031International:+61-7-3107-6325Hong Kong, China:800-930-639Mainland China:400-120-9216Replay Access Code:10040571 About XPENG XPENG is a leading Chinese Smart EV company that designs, develops, manufactures, and markets Smart EVs that appeal to the large and growing base of technology-savvy middle-class consumers. Its mission is to drive Smart EV transformation with technology, shaping the mobility experience of the future. In order to optimize its customers' mobility experience, XPENG develops in-house its full-stack advanced driver-assistance system technology and in-car intelligent operating system, as well as core vehicle systems including powertrain and the electrical/electronic architecture. XPENG is headquartered in Guangzhou, China, with main offices in Beijing, Shanghai, Silicon Valley, San Diego and Amsterdam. The Company's Smart EVs are mainly manufactured at its plants in Zhaoqing and Guangzhou, Guangdong province. For more information, please visit https://www.xpeng.com/. Use of Non-GAAP Financial Measures The Company uses non-GAAP measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic loss per weighted average number of ordinary shares and non-GAAP basic loss per ADS, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, fair value gain (loss) on derivative liability and fair value gain on derivative liability relating to the contingent consideration, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company's operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and non-GAAP Results" set forth in this announcement. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.27 to US$1.00, the exchange rate on June 28, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about XPENG's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: XPENG's goal and strategies; XPENG's expansion plans; XPENG's future business development, financial condition and results of operations; the trends in, and size of, China's EV market; XPENG's expectations regarding demand for, and market acceptance of, its products and services; XPENG's expectations regarding its relationships with customers, suppliers, third-party service providers, strategic partners and other stakeholders; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in XPENG's filings with the United States Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and XPENG does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For Investor Enquiries IR Department XPeng Inc. E-mail: ir@xiaopeng.com Jenny Cai Piacente Financial Communications Tel: +1-212-481-2050 or +86-10-6508-0677 E-mail: xpeng@tpg-ir.com For Media Enquiries PR Department XPeng Inc. E-mail: pr@xiaopeng.com Source: XPeng Inc. XPENG INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) December 31, 2023 June 30, 2024 June 30, 2024 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 21,127,163 14,253,645 1,961,367Restricted cash 3,174,886 3,451,099 474,887Short-term deposits 9,756,979 10,868,694 1,495,582Restricted short-term deposits - 533,377 73,395Short-term investments 781,216 250,967 34,534Long-term deposits, current portion 7,054,915 2,765,569 380,555Accounts and notes receivable, net 2,716,216 2,135,141 293,805Installment payment receivables, net, current portion 1,881,755 1,972,380 271,409Inventory 5,526,212 5,565,776 765,876Amounts due from related parties 12,948 33,533 4,614Prepayments and other current assets 2,489,339 2,902,937 399,456 Total current assets 54,521,629 44,733,118 6,155,480 Non-current assets Long-term deposits 3,035,426 3,915,641 538,810Restricted long-term deposits 767,899 1,287,281 177,136Property, plant and equipment, net 10,954,485 10,467,934 1,440,436Right-of-use assets, net 1,455,865 1,270,676 174,851Intangible assets, net 4,948,992 4,705,139 647,449Land use rights, net 2,789,367 2,764,487 380,406Installment payment receivables, net 3,027,795 3,187,137 438,565Long-term investments 2,084,933 2,061,775 283,710Other non-current assets 576,150 605,601 83,333 Total non-current assets 29,640,912 30,265,671 4,164,696 Total assets 84,162,541 74,998,789 10,320,176 XPENG INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) December 31, 2023 June 30, 2024 June 30, 2024 RMB RMB US$ LIABILITIES Current liabilities Short-term borrowings 3,889,100 4,157,200 572,050Accounts and notes payable 22,210,431 16,389,995 2,255,338Amounts due to related parties 30,880 175 24Operating lease liabilities, current portion 365,999 323,210 44,475Finance lease liabilities, current portion 34,382 34,878 4,799Deferred revenue, current portion 630,997 889,625 122,416Long-term borrowings, current portion 1,363,835 1,977,994 272,181Accruals and other liabilities 7,580,195 6,015,270 827,729Income taxes payable 5,743 7,852 1,080 Total current liabilities 36,111,562 29,796,199 4,100,092 Non-current liabilities Long-term borrowings 5,650,782 5,358,915 737,411Operating lease liabilities 1,490,882 1,367,459 188,169Finance lease liabilities 777,697 796,947 109,664Deferred revenue 668,946 667,165 91,805Derivative liability 393,473 208,974 28,756Deferred tax liabilities 404,018 364,272 50,125Other non-current liabilities 2,336,654 2,433,492 334,860 Total non-current liabilities 11,722,452 11,197,224 1,540,790 Total liabilities 47,834,014 40,993,423 5,640,882 SHAREHOLDERS' EQUITY Class A Ordinary shares 103 103 14Class B Ordinary shares 21 21 3Additional paid-in capital 70,198,031 70,414,048 9,689,295Statutory and other reserves 60,035 79,337 10,917Accumulated deficit (35,760,301) (38,432,174) (5,288,443)Accumulated other comprehensive income 1,830,638 1,944,031 267,508 Total shareholders' equity 36,328,527 34,005,366 4,679,294 Total liabilities and shareholders' equity 84,162,541 74,998,789 10,320,176 XPENG INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) Three Months Ended June 30, March 31, June 30, June 30, 2023 2024 2024 2024 RMB RMB RMB US$ Revenues Vehicle sales4,424,537 5,544,396 6,818,867 938,307Services and others638,159 1,003,700 1,292,540 177,859Total revenues5,062,696 6,548,096 8,111,407 1,116,166Cost of sales Vehicle sales(4,804,535) (5,242,040) (6,384,289) (878,507)Services and others(455,552) (462,303) (591,328) (81,369) Total cost of sales(5,260,087) (5,704,343) (6,975,617) (959,876) Gross (loss) profit(197,391) 843,753 1,135,790 156,290 Operating expenses Research and development expenses(1,367,107) (1,350,448) (1,466,752) (201,832)Selling, general and administrative expenses(1,543,625) (1,388,447) (1,573,601) (216,535)Total operating expenses(2,910,732) (2,738,895) (3,040,353) (418,367) Other income, net17,940 74,040 278,843 38,370Fair value gain on derivative liability relating to the contingent consideration- 175,131 16,662 2,293 Loss from operations(3,090,183) (1,645,971) (1,609,058) (221,414)Interest income303,637 398,645 356,682 49,081Interest expense(67,007) (85,121) (81,399) (11,201)Investment loss on long-term investments(38,704) (19,456) (35,836) (4,931)Exchange gain (loss) from foreign currency transactions42,663 (12,915) 20,801 2,862Other non-operating income, net4,286 4,092 3,525 485Loss before income tax (expenses) benefit and share of results of equity method investees(2,845,308) (1,360,726) (1,345,285) (185,118)Income tax (expenses) benefit(8,217) (1,060) 33,773 4,647Share of results of equity method investees48,873 (6,104) 26,831 3,692Net loss(2,804,652) (1,367,890) (1,284,681) (176,779)Net loss attributable to ordinary shareholders of XPeng Inc.(2,804,652) (1,367,890) (1,284,681) (176,779) XPENG INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED)(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) Three Months Ended June 30, March 31, June 30, June 30, 2023 2024 2024 2024 RMB RMB RMB US$ Net loss(2,804,652) (1,367,890) (1,284,681) (176,779)Other comprehensive loss Foreign currency translation adjustment, net of tax876,266 26,684 86,709 11,932 Total comprehensive loss attributable to XPeng Inc.(1,928,386) (1,341,206) (1,197,972) (164,847) Comprehensive loss attributable to ordinary shareholders of XPeng Inc.(1,928,386) (1,341,206) (1,197,972) (164,847) Weighted average number of ordinary shares used in computing net loss per ordinary share Basic and diluted1,723,369,664 1,885,395,377 1,888,024,660 1,888,024,660 Net loss per ordinary share attributable to ordinary shareholders Basic and diluted(1.63) (0.73) (0.68) (0.09) Weighted average number of ADS used in computing net loss per share Basic and diluted861,684,832 942,697,689 944,012,330 944,012,330 Net loss per ADS attributable to ordinary shareholders Basic and diluted(3.25) (1.45) (1.36) (0.19) XPENG INC.UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) Three Months Ended June 30, March 31, June 30, June 30, 2023 2024 2024 2024 RMB RMB RMB US$ Loss from operations(3,090,183) (1,645,971) (1,609,058) (221,414)Fair value gain on derivative liability relating to the contingent consideration- (175,131) (16,662) (2,293)Share-based compensation expenses134,570 134,711 81,306 11,188 Non-GAAP loss from operations(2,955,613) (1,686,391) (1,544,414) (212,519)Net loss(2,804,652) (1,367,890) (1,284,681) (176,779)Fair value gain on derivative liability relating to the contingent consideration- (175,131) (16,662) (2,293)Share-based compensation expenses134,570 134,711 81,306 11,188 Non-GAAP net loss(2,670,082) (1,408,310) (1,220,037) (167,884)Net loss attributable to ordinary shareholders(2,804,652) (1,367,890) (1,284,681) (176,779)Fair value gain on derivative liability relating to the contingent consideration- (175,131) (16,662) (2,293)Share-based compensation expenses134,570 134,711 81,306 11,188 Non-GAAP net loss attributable to ordinary shareholders of XPeng Inc.(2,670,082) (1,408,310) (1,220,037) (167,884) Weighted average number of ordinary shares used in calculating Non-GAAP net loss per share Basic and diluted1,723,369,664 1,885,395,377 1,888,024,660 1,888,024,660 Non-GAAP net loss per ordinary share Basic and diluted(1.55) (0.75) (0.65) (0.09) Weighted average number of ADS used in calculating Non-GAAP net loss per share Basic and diluted861,684,832 942,697,689 944,012,330 944,012,330 Non-GAAP net loss per ADS Basic and diluted(3.10) (1.49) (1.29) (0.18) Market News and Data brought to you by Benzinga 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Yiren Digital Reports Second Quarter 2024 Financial Results - Yiren Digital (NYSE:YRD)

BEIJING, Aug. 20, 2024 /PRNewswire/ -- Yiren Digital Ltd. YRD ("Yiren Digital" or the "Company"), an AI-powered platform providing a comprehensive suite of financial and lifestyle services in China, today announced its unaudited financial results for the quarter ended June 30, 2024. Second Quarter 2024 Operational Highlights Financial Services Business Total loans facilitated in the second quarter of 2024 reached RMB12.9 billion (US$1.8 billion), representing an increase of 8.6% from RMB11.9 billion in the first quarter of 2024 and compared to RMB8.2 billion in the same period of 2023.Cumulative number of borrowers served reached 10,807,497 as of June 30, 2024, representing an increase of 8.3% from 9,978,280 as of March 31, 2024, and compared to 8,002,372 as of June 30, 2023.Number of borrowers served in the second quarter of 2024 was 1,491,756, representing an increase of 10.3% from 1,352,200 in the first quarter of 2024 and compared to 1,013,972 in the same period of 2023. The increase was due to our ongoing effort in customer acquisition and user experience enhancement.Outstanding balance of performing loans facilitated reached RMB21.8 billion (US$3.0 billion) as of June 30, 2024, representing an increase of 8.3% from RMB20.2 billion as of March 31, 2024 and compared to RMB12.8 billion as of June 30, 2023. Insurance Brokerage Business Cumulative number of insurance clients served reached 1,410,158 as of June 30, 2024, representing an increase of 4.9% from 1,343,660 as of March 31, 2024, and compared to 1,133,069 as of June 30, 2023.Number of insurance clients served in the second quarter of 2024 was 88,766, representing an increase of 20.5% from 73,687 in the first quarter of 2024 and compared to 135,449 in the same period of 2023. The increase was primarily due to the continued growth of our property insurance business.Gross written premiums in the second quarter of 2024 were RMB1,060.9 million (US$146.0 million), representing an increase of 16.3% from RMB912.4 million in the first quarter of 2024 and compared to RMB1,332.5 million in the same period of 2023. The increase was mainly attributed to the continued expansion of our property insurance business. Consumption and Lifestyle Business Total gross merchandise volume generated through our e-commerce platform and "Yiren Select" channel reached RMB554.6 million (US$76.3 million) in the second quarter of 2024, representing a decrease of 11.3% from RMB625.1 million in the first quarter of 2024 and compared to RMB395.8 million in the same period of 2023. The decrease was mainly due to the already high penetration of our products and services within the existing customer pool, along with our strategic scale-back in product offerings as we shift our focus to upgrading customer segmentation. "Despite the evolving market environment, we are pleased to report another solid quarter with strong unit economics, reflecting the resilience of our business structure and operational strategies, as well as our commitment to quality growth over mere expansion." said Mr. Ning Tang, Chairman and Chief Executive Officer. "Our continued investments in AI and the seamless integration of technological innovations into our operations have fostered dual growth in both technological advancements and operational efficiency. Our strategic direction positions us well to evolve into a leading AI-driven platform, paving the way for groundbreaking solutions and setting new industry standards." "In the second quarter of 2024, our total revenue reached RMB 1.5 billion, representing 13% increase year-over-year. We generate approximately RMB 369 million net cash from operation in this quarter, remaining healthy and strong." Ms. Na Mei, Chief Financial Officer commented. "On the balance sheet side, our balance sheet remained strong with RMB 5.5 billion in cash and cash equivalents as of the end of this quarter and we are exploring diversified ways to enhance our shareholder returns. Through both our cash dividend policy and share buybacks, we aim to reward our shareholders for their long-term trust and support, while also boosting market confidence." Second Quarter 2024 Financial Results Total net revenue in the second quarter of 2024 was RMB1,496.5 million (US$205.9 million), representing an increase of 13.0% from RMB1,324.2 million in the second quarter of 2023. Particularly, in the second quarter of 2024, revenue from financial services business was RMB851.0 million (US$117.1 million), representing an increase of 46.2% from RMB582.0 million in the same period of 2023. The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB91.5 million (US$12.6 million), representing a decrease of 77.4% from RMB404.7 million in the second quarter of 2023. The decrease was primarily driven by a decline in life insurance sales, resulting from product modifications mandated by new regulations, along with an industry-wide reduction in commission fee rates due to the implementation of more stringent regulatory standards on rates and terms. Revenue from consumption and lifestyle business and others was RMB554.0 million (US$76.2 million), representing an increase of 64.1% from RMB337.5 million in the second quarter of 2023. The annual increase was primarily attributed to the continuous growth of the service and product penetration in the expanding base of paying customers. As the penetration rate reached a substantial level in the second quarter of 2024, the growth rate is expected to moderate. Sales and marketing expenses in the second quarter of 2024 were RMB285.1 million (US$39.2 million), compared to RMB148.9 million in the same period of 2023. The increase was primarily driven by the swift growth of our financial services segment and enhanced marketing endeavors aimed at attracting new, high-caliber customers while optimizing our customer composition. Origination, servicing and other operating costs in the second quarter of 2024 were RMB246.5million (US$33.9 million), compared to RMB346.4 million in the same period of 2023. The decrease was mainly due to the decline in insurance brokerage services. Research and development expenses[1] in the second quarter of 2024 were RMB55.8 million (US$7.7 million), compared to RMB33.0 million in the same period of 2023. The increase was mainly attributed to our ongoing investment in AI upgrades and technological innovations. General and administrative expenses in the second quarter of 2024 were RMB68.7 million (US$9.4 million), compared to RMB63.7 million in the same period of 2023. The increase was primarily due to personnel adjustments. Allowance for contract assets, receivables and others in the second quarter of 2024 was RMB123.3 million (US$17.0 million), compared to RMB48.9 million in the same period of 2023. The increase reflects the growing volume of loans facilitated on our platform and the more stringent risk estimates in response to the evolving external credit environment. Provision for contingent liabilities in the second quarter of 2024 was RMB278.9 million (US$38.4 million), compared to RMB12.0 million in the same period of 2023. The increase was mainly attributed to a higher volume of loans facilitated under our risk-taking model[2]. Income tax expense in the second quarter of 2024 was RMB92.0 million (US$12.7 million). Net income in the second quarter of 2024 was RMB409.5 million (US$56.4 million), as compared to RMB527.3 million in the same period in 2023. The decrease was primarily due to the growing loan volume facilitated under our risk-taking model, resulting in substantial upfront provisions required by the current accounting principles. Adjusted EBITDA[3] (non-GAAP) in the second quarter of 2024 was RMB481.1 million (US$66.2 million), compared to RMB661.7 million in the same period of 2023. Basic and diluted income per ADS in the second quarter of 2024 were RMB4.7 (US$0.7) and RMB4.7 (US$0.6) respectively, compared to a basic income per ADS of RMB6.0 and a diluted income per ADS of RMB5.9 in the same period of 2023. Net cash generated from operating activities in the second quarter of 2024 was RMB368.9 million (US$50.8 million), compared to RMB718.1 million in the same period of 2023. Net cash used in investing activities in the second quarter of 2024 was RMB536.9 million (US$73.9 million), compared to RMB20.0 million provided by investing activities in the same period of 2023. Net cash used in financing activities in the second quarter of 2024 was RMB125.9 million (US$17.3 million), compared to RMB6.1 million in the same period of 2023. As of June 30, 2024, cash and cash equivalents were RMB5,496.9 million (US$756.4 million), compared to RMB5,904.0 million as of March 31, 2024. As of June 30, 2024, the balance of held-to-maturity investments was RMB5.1 million (US$0.7 million), decreased 51.2% from March 31, 2024. As of June 30, 2024, the balance of available-for-sale investments was RMB329.8 million (US$45.4 million), compared to RMB379.5 million as of March 31, 2024. As of June 30, 2024, the balance of trading securities was RMB83.9 million (US$11.5 million), compared to RMB78.0 million as of March 31, 2024. Delinquency rates. As of June 30, 2024, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.8%, 1.4% and 1.6%, respectively, compared to 0.9%, 1.6% and 1.4%, respectively, as of March 31, 2024. Cumulative M3+ net charge-off rates. As of June 30, 2024, the cumulative M3+ net charge-off rates for loans originated in 2021, 2022 and 2023 were 6.1%, 4.6% and 5.9%, respectively, as compared to 6.3%, 4.7% and 3.9%, respectively, as of March 31, 2024. Management Change The Company announces that Ms. Na Mei will resign from her position as Chief Financial Officer due to personal reasons effective as of the close of business on August 20, 2024 New York time. Ms. Mei will continue to serve CreditEase, Yiren Digital's parent company, and assist in ensuring a smooth transition to the new CFO. The board of directors of the Company (the "Board") extends its gratitude to Ms. Mei for her dedicated service and significant contributions during her tenure. Following this development, the Board has appointed Mr. Yuning Feng as the new Chief Financial Officer to succeed Ms. Mei. Mr. Feng brings extensive experience and expertise in investment banking and financial control to the role, and the Board is confident in his ability to lead the Company's financial operations with distinction. Mr. Feng possesses over a decade of experience in venture capital investment, investment banking and financial control. Before joining Yiren Digital, he was a partner at CE Innovation Capital, from 2015 to 2018 and from 2021 to 2024. In this role, he led investments in fintech, enterprise solutions, and AI sectors, managed investment portfolios, and contributed to fundraising and fund management. From 2018 to 2021, Mr. Feng served as an investment banker at China Renaissance, specializing in corporate finance for fintech and enterprise solutions companies, where he established strong connections with a variety of companies and investors. Earlier in his career, Mr. Feng was a financial controller at Goldman Sachs and UBS from 2008 to 2012. He received a bachelor's degree from Beijing Foreign Studies University in 2008 and an MBA from the University of Warwick in 2014. Dividend Policy The Company is pleased to announce that the Board has approved a semi-annual dividend policy, reflecting our commitment to delivering value to our shareholders. Pursuant to the policy, the Board plans to declare semi-annual dividends at an amount equivalent to no less than 10% of the Company's anticipated net income after tax in each half year commencing from the first half of 2024. The determination to declare and pay such semi-annual dividends and the amount of dividends in any particular half year will be made at the discretion of the Board and will be based upon the Company's operations, earnings, cash flow, financial condition and other relevant factors that the Board may deem appropriate. The cash dividend for the first half of 2024, a payment of US$0.2 per American depositary share (the "ADS"), each representing two ordinary shares of the Company, par value US$0.0001 per share, is expected to be paid on or about October 15, 2024, to holders of the Company's ordinary shares and ADSs of record as of the close of business on September 30, 2024, Hong Kong time and New York time, respectively. Update on Share Repurchase In September 2022, the Board authorized a share repurchase program under which the Company may repurchase up to US$20 million worth of its ADSs. The share repurchases may be made in accordance with applicable laws and regulations through open market transactions, privately negotiated transactions or other legally permissible means as determined by the management. In the second quarter of 2024, the Company allocated US$4.0 million to repurchase shares in the public market. As of June 30, 2024, the Company had in aggregate purchased approximately 4.3 million ADSs in the open market for a total amount of approximately US$13.5 million (exclusive of commissions) under the 2022 share repurchase program. Business Outlook Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the third quarter of 2024 to be between RMB1.4 billion to RMB1.5 billion, with a healthy net profit margin. This is the Company's current and preliminary view, which is subject to changes and uncertainties. Non-GAAP Financial Measures In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release. Currency Conversion This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.2672 to US$1.00, the effective noon buying rate on June 28, 2024, as set forth in the H.10 statistical release of the Federal Reserve Board. Conference Call Yiren Digital's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on August 20, 2024 (or 8:00 p.m. Beijing/Hong Kong Time on August 20, 2024). Participants who wish to join the call should register online in advance of the conference at: https://dpregister.com/sreg/10191859/fd4b40278f Once registration is completed, participants will receive the dial-in details for the conference call. Additionally, a live and archived webcast of the conference call will be available at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=T01PiHJw Safe Harbor Statement This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital's control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren Digital's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yiren Digital's ability to meet the standards necessary to maintain the listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. About Yiren Digital Yiren Digital Ltd. is an advanced, AI-powered platform providing a comprehensive suite of financial and lifestyle services in China. Our mission is to elevate customers' financial well-being and enhance their quality of life by delivering digital financial services, tailor-made insurance solutions, and premium lifestyle services. We support clients at various growth stages, addressing financing needs arising from consumption and production activities, while aiming to augment the overall well-being and security of individuals, families, and businesses. [1] Research and development expenses have been segregated from general and administrative expenses and restated for historical periods to better reflect the Company's cost and expense structure. [2] The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform. [3] "Adjusted EBITDA" is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release. Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended For the Six Months Ended June 30, 2023 March 31, 2024 June 30, 2024 June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2024 RMB RMB RMB USD RMB RMB USD Net revenue: Loan facilitation services 514,353 676,295 695,532 95,708 931,518 1,371,827 188,770 Post-origination services 5,273 1,772 1,290 178 11,589 3,062 421 Insurance brokerage services 404,695 124,926 91,526 12,594 601,053 216,452 29,785 Financing services 14,896 10,666 19,574 2,693 37,473 30,240 4,161 Electronic commerce services 287,725 502,936 523,641 72,055 530,583 1,026,577 141,262 Guarantee services 6,343 16,853 68,934 9,486 12,102 85,787 11,805 Others 90,921 44,636 96,039 13,216 186,231 140,675 19,357 Total net revenue 1,324,206 1,378,084 1,496,536 205,930 2,310,549 2,874,620 395,561 Operating costs and expenses: Sales and marketing 148,947 277,223 285,101 39,231 255,159 562,324 77,378 Origination,servicing and other operating costs 346,367 233,270 246,542 33,925 546,112 479,812 66,024 Research and development 33,018 40,521 55,812 7,680 62,187 96,333 13,256 General and administrative 63,723 83,674 68,670 9,449 127,104 152,344 20,963 Allowance for contract assets, receivables and others 48,865 102,334 123,285 16,965 88,271 225,619 31,047 Provision for contingent liabilities 11,975 67,258 278,925 38,382 17,474 346,183 47,636 Total operating costs and expenses 652,895 804,280 1,058,335 145,632 1,096,307 1,862,615 256,304 Other (expenses)/income: Interest income, net 10,535 27,713 24,668 3,394 25,054 52,381 7,208 Fair value adjustments related to Consolidated ABFE (17,470) 15,468 38,706 5,326 (28,673) 54,174 7,455 Others, net 2,730 677 (11) (1) 6,319 666 91 Total other (expenses)/income (4,205) 43,858 63,363 8,719 2,700 107,221 14,754 Income before provision for income taxes 667,106 617,662 501,564 69,017 1,216,942 1,119,226 154,011 Income tax expense 139,758 131,779 92,036 12,664 262,428 223,815 30,798 Net income 527,348 485,883 409,528 56,353 954,514 895,411 123,213 Weighted average number of ordinary shares outstanding, basic 176,929,176 174,282,443 172,831,722 172,831,722 177,353,262 173,557,082 173,557,082 Basic income per share 2.9806 2.7879 2.3695 0.3261 5.3820 5.1592 0.7099 Basic income per ADS 5.9612 5.5758 4.7390 0.6522 10.7640 10.3184 1.4198 Weighted average number of ordinary shares outstanding, diluted 179,124,032 176,202,571 174,711,554 174,711,554 179,650,148 175,457,062 175,457,062 Diluted income per share 2.9440 2.7575 2.3440 0.3225 5.3132 5.1033 0.7022 Diluted income per ADS 5.8880 5.5150 4.6880 0.6450 10.6264 10.2066 1.4044 Unaudited Condensed Consolidated Cash Flow Data Net cash generated from operating activities 718,058 631,743 368,908 50,763 1,108,365 1,000,651 137,693 Net cash (used in)/provided by investing activities (19,988) (683,697) (536,883) (73,878) 754,295 (1,220,580) (167,957) Net cash used in financing activities (6,120) (14,774) (125,884) (17,322) (398,951) (140,658) (19,355) Effect of foreign exchange rate changes 329 1,340 (896) (123) 148 444 61 Net increase/(decrease) in cash, cash equivalents and restricted cash 692,279 (65,388) (294,755) (40,560) 1,463,857 (360,143) (49,558) Cash, cash equivalents and restricted cash, beginning of period 5,132,273 6,058,604 5,993,216 824,694 4,360,695 6,058,604 833,692 Cash, cash equivalents and restricted cash, end of period 5,824,552 5,993,216 5,698,461 784,134 5,824,552 5,698,461 784,134 Unaudited Condensed Consolidated Balance Sheets (in thousands) As of December 31, 2023 March 31, 2024 June 30, 2024 June 30, 2024 RMB RMB RMB USD Cash and cash equivalents 5,791,333 5,903,995 5,496,932 756,403 Restricted cash 267,271 89,221 201,529 27,731 Trading securities 76,053 77,967 83,889 11,544 Accounts receivable 499,027 610,745 654,698 90,089 Guarantee receivable 2,890 36,787 260,759 35,882 Contract assets, net 978,051 994,116 962,482 132,442 Contract cost 32 18 206 28 Prepaid expenses and other assets 423,621 1,273,040 1,662,654 228,789 Loans at fair value 677,835 655,058 473,311 65,130 Financing receivables 116,164 73,383 30,501 4,197 Amounts due from related parties 820,181 726,991 1,509,651 207,735 Held-to-maturity investments 10,420 10,420 5,087 700 Available-for-sale investments 438,084 379,489 329,829 45,386 Equity investments - - 2,500 344 Property, equipment and software, net 79,158 77,777 77,970 10,729 Deferred tax assets 73,414 59,260 44,309 6,097 Right-of-use assets 23,382 18,758 19,462 2,678 Total assets 10,276,916 10,987,025 11,815,769 1,625,904 Accounts payable 30,902 41,484 43,710 6,015 Amounts due to related parties 14,414 1,122 2,485 342 Guarantee liabilities-stand ready 8,802 40,583 278,656 38,344 Guarantee liabilities-contingent 28,351 81,921 336,190 46,261 Deferred revenue 54,044 46,807 38,843 5,345 Payable to investors at fair value 445,762 445,762 350,000 48,162 Accrued expenses and other liabilities 1,463,369 1,595,052 1,727,182 237,668 Deferred tax liabilities 122,075 114,222 55,520 7,640 Lease liabilities 23,648 19,025 19,280 2,653 Total liabilities 2,191,367 2,385,978 2,851,866 392,430 Ordinary shares 130 130 130 18 Additional paid-in capital 5,171,232 5,172,942 5,175,653 712,194 Treasury stock (94,851) (109,444) (139,380) (19,179) Accumulated other comprehensive income 23,669 66,671 47,798 6,576 Retained earnings 2,985,369 3,470,748 3,879,702 533,865 Total equity 8,085,549 8,601,047 8,963,903 1,233,474 Total liabilities and equity 10,276,916 10,987,025 11,815,769 1,625,904 Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures (in thousands, except for number of borrowers, number of insurance clients, cumulative number of insurance clients and percentages) For the Three Months Ended For the Six Months Ended June 30, 2023 March 31, 2024 June 30, 2024 June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2024 RMB RMB RMB USD RMB RMB USD Operating Highlights Amount of loans facilitated 8,156,201 11,910,367 12,936,017 1,780,055 14,576,413 24,846,384 3,418,976 Number of borrowers 1,013,972 1,352,200 1,491,756 1,491,756 1,457,736 2,439,778 2,439,778 Remaining principal of performing loans 12,768,448 20,156,161 21,827,634 3,003,582 12,768,448 21,827,634 3,003,582 Cumulative number of insurance clients 1,133,069 1,343,660 1,410,158 1,410,158 1,133,069 1,410,158 1,410,158 Number of insurance clients 135,449 73,687 88,766 88,766 212,414 153,807 153,807 Gross written premiums 1,332,458 912,431 1,060,885 145,983 2,255,841 1,973,316 271,537 First year premium 1,101,928 514,141 577,387 79,451 1,729,243 1,091,528 150,199 Renewal premium 230,530 398,290 483,498 66,532 526,598 881,788 121,338 Gross merchandise volume 395,820 625,120 554,574 76,312 704,387 1,179,695 162,331 Segment Information Financial services business: Revenue 581,974 738,117 851,031 117,106 1,065,847 1,589,148 218,674 Sales and marketing expenses 103,164 251,922 253,103 34,828 165,382 505,025 69,494 Origination, servicing and other operating costs 38,961 85,787 113,234 15,582 86,570 199,021 27,386 Allowance for contract assets, receivables and others 45,754 101,127 124,765 17,168 85,976 225,892 31,084 Provision for contingent liabilities 11,975 67,258 278,925 38,382 17,474 346,183 47,636 Insurance brokerage business: Revenue 404,695 124,926 91,526 12,594 601,053 216,452 29,785 Sales and marketing expenses 3,845 3,565 4,263 587 6,134 7,828 1,077 Origination, servicing and other operating costs 289,851 136,883 122,358 16,837 423,468 259,241 35,673 Allowance for contract assets, receivables and others 3,614 1,012 (1,502) (207) 3,626 (490) (67) Consumption & lifestyle business and others: Revenue 337,537 515,041 553,979 76,230 643,649 1,069,020 147,102 Sales and marketing expenses 41,938 21,736 27,735 3,816 83,643 49,471 6,807 Origination, servicing and other operating costs 17,555 10,600 10,950 1,506 36,074 21,550 2,965 Allowance for contract assets, receivables and others (753) 9 (11) (2) (1,232) (2) - Reconciliation of Adjusted EBITDA Net income 527,348 485,883 409,528 56,353 954,514 895,411 123,213 Interest income, net (10,535) (27,713) (24,668) (3,394) (25,054) (52,381) (7,208) Income tax expense 139,758 131,779 92,036 12,664 262,428 223,815 30,798 Depreciation and amortization 1,778 1,892 2,026 279 3,646 3,918 539 Share-based compensation 3,321 1,207 2,136 294 5,410 3,343 460 Adjusted EBITDA 661,670 593,048 481,058 66,196 1,200,944 1,074,106 147,802 Adjusted EBITDA margin 50.0 % 43.0 % 32.1 % 32.1 % 52.0 % 37.4 % 37.4 % Delinquency Rates 15-29 days 30-59 days 60-89 days December 31, 2019 0.8 % 1.3 % 1.0 % December 31, 2020 0.5 % 0.7 % 0.6 % December 31, 2021 0.9 % 1.5 % 1.2 % December 31, 2022 0.7 % 1.3 % 1.1 % December 31, 2023 0.9 % 1.4 % 1.2 % March 31, 2024 0.9 % 1.6 % 1.4 % June 30, 2024 0.8 % 1.4 % 1.6 % Net Charge-Off Rate Loan Issued Period Amount of Loans Facilitated During the Period Accumulated M3+ Net Charge-Off as of June 30, 2024 Total Net Charge- Off Rate as of June 30, 2024 (in RMB thousands) (in RMB thousands) 2019 3,431,443 381,533 11.1 % 2020 9,614,819 723,686 7.5 % 2021 23,195,224 1,418,075 6.1 % 2022 22,623,101 1,033,743 4.6 % 2023 36,036,301 2,126,589 5.9 % 2024Q1 11,910,367 105,205 0.9 % M3+ Net Charge-Off Rate Loan Issued Period Month on Book 4 7 10 13 16 19 22 25 28 31 34 2019Q1 0.0 % 0.8 % 2.0 % 3.4 % 5.3 % 5.9 % 6.3 % 6.3 % 6.3 % 6.3 % 6.3 % 2019Q2 0.1 % 1.5 % 4.5 % 7.5 % 8.8 % 9.2 % 9.9 % 10.3 % 10.6 % 10.6 % 10.6 % 2019Q3 0.2 % 2.9 % 6.8 % 9.0 % 10.4 % 12.0 % 13.2 % 13.8 % 14.4 % 14.6 % 14.6 % 2019Q4 0.4 % 3.1 % 4.9 % 6.3 % 7.2 % 7.9 % 8.4 % 8.9 % 9.5 % 9.8 % 9.8 % 2020Q1 0.6 % 2.3 % 4.1 % 5.2 % 6.0 % 6.2 % 6.6 % 7.3 % 7.8 % 7.9 % 7.9 % 2020Q2 0.5 % 2.5 % 4.2 % 5.3 % 6.1 % 6.7 % 7.6 % 8.1 % 8.2 % 8.3 % 8.2 % 2020Q3 1.1 % 3.3 % 5.1 % 6.3 % 7.1 % 8.1 % 8.7 % 8.9 % 8.9 % 8.8 % 8.7 % 2020Q4 0.3 % 1.8 % 3.2 % 4.6 % 6.0 % 7.1 % 7.4 % 7.6 % 7.6 % 7.5 % 7.5 % 2021Q1 0.4 % 2.3 % 3.9 % 5.5 % 6.7 % 7.0 % 7.2 % 7.3 % 7.2 % 7.1 % 7.0 % 2021Q2 0.4 % 2.4 % 4.5 % 5.9 % 6.4 % 6.7 % 6.8 % 6.7 % 6.6 % 6.5 % 6.4 % 2021Q3 0.5 % 3.1 % 5.0 % 5.9 % 6.3 % 6.4 % 6.4 % 6.3 % 6.2 % 6.1 % 2021Q4 0.6 % 3.2 % 4.6 % 5.3 % 5.4 % 5.4 % 5.3 % 5.2 % 5.1 % 2022Q1 0.6 % 2.5 % 3.8 % 4.5 % 4.5 % 4.4 % 4.3 % 4.2 % 2022Q2 0.4 % 2.2 % 3.6 % 4.1 % 4.2 % 4.1 % 4.0 % 2022Q3 0.5 % 2.7 % 4.1 % 4.7 % 4.8 % 4.6 % 2022Q4 0.6 % 3.0 % 4.6 % 5.4 % 5.4 % 2023Q1 0.5 % 3.1 % 4.9 % 5.8 % 2023Q2 0.5 % 3.3 % 5.2 % 2023Q3 0.7 % 4.0 % 2023Q4 0.6 % View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-second-quarter-2024-financial-results-302226268.html SOURCE Yiren Digital Market News and Data brought to you by Benzinga APIs