The net loss in the first quarter is 360 million yuan, and the sales volume in September will exceed 10,000. What is the ideal car?

  

The net loss in the first quarter is 360 million yuan, and the sales volume in September will exceed 10,000. What is the ideal car?

The ideal is very rich, but the reality may not be satisfactory.

Before the market on May 26, Li Auto released its financial report for the first quarter of 2021. According to the financial report, as of March 31, Li Auto’s total revenue in the first quarter of 2021 was 3.58 billion yuan, an increase of 319.8% from 851.7 million yuan in the first quarter of 2020, but compared with 4.15 billion yuan in the fourth quarter of 2020. It fell 13.8%.

Losses widened in the first quarter, with a net loss of 360 million yuan

After a brief profit in the fourth quarter of 2020, Li Auto returned to the norm of losses in the latest quarter.

In the fourth quarter of 2020, Li Auto’s net profit was 107.5 million yuan, the first quarterly profit to turn positive. However, according to the financial report, Li Auto had a net loss of 360 million yuan in the first quarter of 2021, compared with a net loss of 77.1 million yuan in the first quarter of 2020, and its loss expanded.

In the first quarter of 2021, Li Auto’s car sales revenue was 3.46 billion yuan, an increase of 311.8% from 841.1 million yuan in the first quarter of 2020, but a 14.6% decrease from 4.06 billion yuan in the fourth quarter of 2020.

Compared with the first quarter of 2020, the main reason for the increase in car sales revenue, Li Auto blamed the increase in deliveries due to the continuous expansion of the sales network.

Compared with the fourth quarter of 2020, the main reason for the decline in car sales revenue, which Li Auto blamed on the decline in car deliveries, was mainly due to seasonal factors related to the Lunar New Year holiday and localized COVID-19 in the northern region in February 2021 impact of the outbreak.

Li Auto’s gross profit margin of auto sales in the first quarter of 2021 was 16.9%, which was also lower than that in the fourth quarter of 2020.

The first and fourth quarters of 2020 were 8.4% and 17.1%, respectively.

Regarding the main reason for the decline in the gross profit margin of car sales compared with the fourth quarter of 2020, Li Auto blamed the promotion on the first quarter of 2021, which resulted in a decrease in average revenue per vehicle.

Gross profit for the first quarter of 2021 was RMB 616.7 million (US$ 94.1 million), an increase of 802.9% from RMB 68.3 million in the first quarter of 2020 and a decrease of 14.9% from RMB 724.6 million in the fourth quarter of 2020.

Gross margin was 17.3% in the first quarter of 2021, 8.0% in the first and fourth quarters of 2020, and 17.5% in the fourth quarter. The change was mainly attributable to the change in gross profit margin of automobile sales.

About 15,000 vehicles were delivered in the second quarter, and the sales in September will exceed 10,000

The old ideal ONE only began to be officially delivered in December 2019, so the official year-on-year data reference is of little significance. For a new car-making force, the most important thing is to look at the month-on-month data. From the month-on-month data, we can see whether the development trend of a start-up car company is improving.

Regardless of revenue, profit, or sales volume, Li Auto’s sales in the first quarter of 2021 were not as good as the previous quarter, which is also the direct cause of the quarter-on-quarter decline in revenue.

According to the data, in the first quarter of 2021, the delivery volume of Lili ONE was 12,579; 14,464 vehicles.

For this year’s sales forecast, Li Auto expects vehicle deliveries to be between 14,500 and 15,500 in the second quarter of this year; total revenue will be between 3.99 billion and 4.27 billion yuan.

After the release of the 2021 Ideal ONE, Shen Yanan, co-founder and president of Ideal Auto, said in a group interview with Titanium Media and other media, “I hope to achieve sales of over 10,000 in September this year.”

There are many popular items on the market that have achieved sales of more than 10,000 units, but Li Auto is a new force in car manufacturing. It has only one model, and the total sales so far have exceeded 55,000 units. How can the 2021 Li Li ONE be able to sell in September this year? Monthly sales exceeded 10,000?

Shen Yanan explained that there are two aspects to support the breakthrough in September sales. On the one hand, the product strength of the 2021 Ideal ONE has been further improved; on the other hand, as of now, Li Auto has 75 retail stores in 54 cities. Accelerate the coverage of retail channels, and it is expected that the number of retail stores will reach 200 by the end of the year.

The starting price of the 2021 Ideal ONE is 338,000 yuan, which is only 10,000 yuan higher than the old model. Delivery will start on June 1. Li Auto said that with the production and sales of the 2021 Li Li ONE, the production of the 2020 model will be discontinued.

Old users are leeks?

Compared with the 2020 Ideal ONE, the 2021 Ideal ONE has achieved many upgrades in hardware. The extended-range electric system, ideal AD advanced assisted driving, intelligent cockpit, and ride comfort have all been upgraded.

It is worth noting that, in terms of three-electricity, a three-in-one electric drive is used, and the NEDC battery life is 1080km, of which the pure electric battery life is increased to 188km; in terms of intelligent and auxiliary operating systems, it is equipped with an 8-megapixel visual recognition camera, Two Horizon’s latest “Journey 3” dedicated chips for autonomous driving, and five Bosch fifth-generation millimeter-wave radars.

Among them, the 2021 Ideal ONE will be equipped with the full-stack self-developed Ideal AD advanced assisted driving system as standard, and the NOA navigation assisted driving function will be standard.

Regarding NOA for old car owners, Li Xiang, the founder, chairman and CEO of Ideal Motors, said frankly in a group interview with Titanium Media and other media, “NOA has no way to upgrade old car owners, this wiring harness is different, a little problem will cause Big safety issues, and basically no possibility of changing the wiring harness, and there is no way to provide an upgrade for the old car owner.”

The net loss in the first quarter is 360 million yuan, and the sales volume in September will exceed 10,000. What is the ideal car?

However, Li Xiang promised that the L2 ADAS of the previous 2020 Ideal ONE will continue to be upgraded, such as visual parking.

Regarding how to balance the feelings of new and old users, Shen Yanan said, “The industry itself is developing rapidly, and we cannot stop the evolution of products. For users, we still focus more on after-sales service to increase everyone’s satisfaction. Through continuous improvement of service, we will make everyone satisfied.”

However, before the release of the 2021 Ideal ONE on May 25, Li Xiang posted an article “About the Upgrade Mode of Hardware Product Managers” on his Weibo. Under the Weibo, a message that was liked and pinned to the top was: “What about the old customers? I won’t talk about the hardware upgrade. Now the software upgrade is not the same as the new car. You are killing yourself.”

The owner of the old YouIdeal ONE said that when he went to the store to book a car in mid-April, he repeatedly checked with the sales to see if there would be a change, and the sales answered unequivocally that there would be no change. Have. Then in April, the Shanghai Auto Show did not show the facelifted car, and the facelift was released directly in May.

Even the old Lili ONE owner who just picked up the car was cut off, helping Lili to clear the stock car.

The reason why old users have grievances and dissatisfaction is mainly that during May Day this year, in order to digest inventory, Li Auto launched a car purchase to enjoy 8,000 yuan of preferential activities, and the loan part of 150,000 yuan of interest-free discounts. The new car is only 10,000 more, and it has been upgraded a lot in all aspects of configuration.

For new brands, when products are updated, they should pay special attention to the feelings of old users, and balance the feelings of new and old users, which is a benign way of brand development.

Perhaps, the sales of the ideal car will be good in the future, but the current dissatisfaction of some old users should also cause their reflection and attention.

summary

Regarding Baidu, Xiaomi, etc. entering the market to build cars, Li Xiang believes, “In the end, we still need to see if we can come up with real products. Is it true that All in is making products, or we should talk about products and market sales.”

Li Xiang is still a little conceited with confidence. He is very confident and full of expectations for the new ideal ONE.

Whether the 2021 Ideal ONE can enter the monthly sales club of 10,000 units, the answer will be available soon, after all, there are still more than three months before September.

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