XPENG Reports Robust Fourth Quarter 2024 and Full-Year 2024 Unaudited Financial Results

XPeng Inc. delivered a robust fourth quarter and full-year 2024, underscoring continued scale expansion in its Smart EV ecosystem as it advances competitive margins, capital efficiency, and strategic partnerships. The company reported meaningful year-over-year and sequential improvements in key profitability metrics, a solid cash position, and a palpable ramp in vehicle deliveries alongside a growing charging-network footprint. Management highlighted AI-enabled product and software initiatives as central to XPeng’s path toward a global, AI-powered automotive company, with 2025 poised to feature new product introductions, sustained R&D investment, and steady progress toward free cash flow generation.

Comprehensive overview of Q4 2024 operational and financial performance

XPeng’s quarterly results for the three months ended December 31, 2024 reflect a pronounced lift across deliveries, revenues, and gross profitability, underpinned by a broad-based expansion of the company’s retail and service network. Total vehicle deliveries for the quarter reached 91,507 units, marking a substantial 52.1% year-on-year increase from 60,158 vehicles delivered in the corresponding period of 2023. This quarterly performance occurred as XPeng’s physical sales network expanded to a total of 690 stores across 226 cities as of December 31, 2024, further strengthening the company’s market reach and consumer access. In parallel, XPeng’s self-operated charging infrastructure grew to 1,920 stations by the end of the quarter, including 928 XPENG S4 and S5 ultra-fast charging stations, signaling a deepening commitment to a seamless user charging experience and full-stack mobility solutions.

Total revenues for Q4 2024 were RMB16.11 billion (US$2.21 billion), representing a 23.4% year-over-year increase from RMB13.05 billion in Q4 2023, and a 59.4% sequential increase from RMB10.10 billion in the third quarter of 2024. Revenues from vehicle sales were RMB14.67 billion (US$2.01 billion) for the quarter, up 20.0% year over year from RMB12.23 billion in Q4 2023 and up 66.8% quarter over quarter from RMB8.80 billion in Q3 2024. This growth pattern underscores higher unit volumes alongside an improving mix and pricing dynamics as the company scales production and delivery operations. Revenues from services and others stood at RMB1.43 billion (US$0.20 billion) in Q4 2024, which reflects a 74.4% year-over-year increase from RMB0.82 billion in Q4 2023 and a 9.7% quarter-over-quarter increase from RMB1.31 billion in Q3 2024. The year-over-year uplift in services and other revenue was primarily driven by increased technical R&D services tied to the company’s platform and software strategic collaborations, as well as enhanced EEA-related collaborations with the Volkswagen Group. The quarterly improvement from Q3 2024 was largely driven by higher revenue from maintenance services and auto financing services.

The gross margin for Q4 2024 came in at 14.4%, a step up from 6.2% in Q4 2023 and just slightly below the 15.3% reported in the prior quarter (Q3 2024). Vehicle margin for the quarter was 10.0%, up from 4.1% in Q4 2023 and higher than 8.6% in Q3 2024. These margin dynamics reflect notable improvements in cost structure and the evolving mix of vehicle sales alongside direct-cost optimizations in procurement and manufacturing operations as XPeng continues its scale-up.

On the profitability front, XPeng posted a net loss of RMB1.33 billion (US$0.18 billion) for Q4 2024, versus RMB1.35 billion in the same period of 2023 and RMB1.81 billion for Q3 2024. Excluding certain non-cash and non-recurring items, including share-based compensation, fair value adjustments related to derivative liabilities, and the fair value changes connected to contingent consideration, the non-GAAP net loss for the quarter was RMB1.39 billion (US$0.19 billion), compared with RMB1.77 billion in Q4 2023 and RMB1.53 billion in Q3 2024. The net loss attributable to ordinary shareholders of XPeng for the quarter stood at RMB1.33 billion (US$0.18 billion), which aligns with the GAAP net loss, while non-GAAP net loss attributable to ordinary shareholders was RMB1.39 billion (US$0.19 billion). Basic and diluted net loss per American Depositary Share (ADS) were RMB1.40 (US$0.19), and basic and diluted net loss per ordinary share were RMB0.70 (US$0.10) for Q4 2024. On a non-GAAP basis, basic and diluted net loss per ADS were RMB1.47 (US$0.20), and non-GAAP basic and diluted net loss per ordinary share were RMB0.73 (US$0.10). Each ADS represents two Class A ordinary shares.

From a liquidity and balance sheet standpoint, XPeng’s cash and cash equivalents, restricted cash, short-term investments, and time deposits were RMB41.96 billion (US$5.75 billion) as of December 31, 2024. This compares with RMB45.70 billion as of December 31, 2023 and RMB35.75 billion as of September 30, 2024. The time deposits disclosed include restricted short-term deposits, short-term deposits, restricted long-term deposits, and the current and non-current portions of long-term deposits. The financial position indicates a solid liquidity cushion that supports ongoing investment in core competencies, including product development, charging infrastructure, and manufacturing scale.

The quarterly results also reflect a strong revenue mix with vehicle sales driving the bulk of top-line growth and services and others contributing meaningfully to the overall revenue profile. The combined revenue total of RMB16.11 billion and a vehicle revenue contribution of RMB14.67 billion demonstrates the company’s continued success in converting demand into physical deliveries and highlights the importance of its evolving after-sales and software services ecosystem.

In terms of cost structure, the fourth quarter cost of sales was RMB13.78 billion, with RMB13.20 billion attributed to vehicle sales and RMB0.58 billion to services and others. This yields a gross profit of RMB2.324 billion for Q4 2024, translating to a gross margin of 14.4%. The company’s operating expenses for the quarter came to RMB4.282 billion, comprising RMB2.007 billion in research and development (R&D) and RMB2.275 billion in selling, general and administrative (SG&A) expenses, signaling continued investment in product development and scale-driven marketing and distribution costs as XPeng expands its market footprint. Other income, net, totaled RMB0.196 billion, with a fair value gain on derivative liability related to contingent consideration of RMB0.204 billion contributing to the quarter’s income dynamics. Loss from operations for the quarter stood at RMB1.556 billion, with interest income of RMB0.302 billion and interest expense of RMB0.094 billion. The quarter also recognized a non-cash gain related to the derivative liability valuation of RMB0.204 billion, reflecting contingent consideration tied to the DiDi Global Inc. smart auto business acquisition.

Finally, per-share metrics, including both GAAP and non-GAAP measures, underscored XPeng’s ongoing path toward broader profitability and improved capital efficiency. The diluted and basic net loss per ADS of RMB1.40 and RMB0.70 per ordinary share, respectively, and the non-GAAP equivalents of RMB1.47 and RMB0.73 per ADS and per ordinary share, reflect a transition period for the company as it invests in next-generation platforms, higher-value software services, and scalable production capacity.

For the perpetual balance sheet snapshot, current liabilities stood at RMB36.11 billion, and non-current liabilities at RMB11.72 billion, summing to total liabilities of RMB47.83 billion. Shareholders’ equity registered RMB36.33 billion, yielding total liabilities and shareholders’ equity of RMB84.16 billion. The equity section includes Class A and Class B ordinary shares, a substantial balance of additional paid-in capital, statutory and other reserves, and a notable accumulated deficit, offset by accumulated other comprehensive income. The balance sheet demonstrates a mix of robust asset coverage and a sizable cumulative deficit that XPeng continues to address through revenue growth, cost discipline, and higher-margin product mix.

XPeng’s Q4 2024 performance sits within the broader context of a full-year 2024 that also reflected substantial progress in revenue growth, margin improvements, and a disciplined cost structure as the company continues to scale its Smart EV ecosystem. The company reported total annual revenues of RMB40.87 billion (US$5.60 billion), up 33.2% year over year from RMB30.68 billion in 2023. Vehicle sales revenues reached RMB35.83 billion (US$4.91 billion) for the year, rising 27.9% from RMB28.01 billion in 2023, as higher volumes and favorable mix supported top-line expansion. Services and others contributed RMB5.04 billion (US$0.69 billion) in 2024, marking an 89.0% year-over-year increase due to the increased revenue from technical R&D services tied to the platform and software collaboration as well as EEA technical collaboration with Volkswagen Group.

On the cost side, the cost of sales for 2024 totaled RMB35.02 billion (US$4.80 billion), up 15.9% from RMB30.22 billion in the prior year, consistent with the higher vehicle deliveries and the growth in services-related activities. The gross margin for the year was 14.3%, versus 1.5% in 2023, while the vehicle margin reached 8.3% for 2024, marking a notable improvement from negative 1.6% in 2023. The services and other margin stood at 57.2% for the year, supported by the broader services mix associated with the platform and strategic collaborations.

R&D expenses for 2024 were RMB6.46 billion (US$0.88 billion), up 22.4% from RMB5.28 billion in 2023, reflecting continued investment in new vehicle platforms and capabilities to support future growth. SG&A expenses were RMB6.87 billion (US$0.94 billion), up 4.8% year over year, driven in part by higher commissions to franchised stores due to stronger sales volumes and increased marketing, promotion, and advertising expenditures to sustain vehicle sales momentum. Other income, net was RMB0.59 billion (US$0.08 billion), up 26.6% as government subsidies fluctuated. The fair value gain on derivative liability related to contingent consideration was RMB0.23 billion (US$0.03 billion) for 2024, reflecting the non-cash impact of contingent consideration tied to the DiDi Smart Auto business acquisition. Loss from operations for 2024 was RMB6.66 billion (US$0.91 billion), improved meaningfully from RMB10.89 billion in 2023, while non-GAAP loss from operations, excluding share-based compensation and fair value adjustments, was RMB6.42 billion (US$0.88 billion) for 2024, again reflecting substantial progress versus the prior year. Net loss for 2024 was RMB5.79 billion (US$0.79 billion), down from RMB10.38 billion in 2023, with non-GAAP net loss RMB5.55 billion (US$0.76 billion), versus RMB9.44 billion in 2023. The basic and diluted net loss per ADS for 2024 was RMB6.12 (US$0.84), down from RMB11.92 in 2023, while non-GAAP net loss per ADS was RMB5.87 (US$0.80) versus RMB10.85 in 2023.

The company also highlighted a positive operating outlook for the next period, including expectations for first-quarter 2025 vehicle deliveries in the range of 91,000 to 93,000 units and total revenues of RMB15.0 billion to RMB15.7 billion, signaling a continued acceleration in deliveries while management continues to balance investment in R&D and profitability objectives. The guidance reflects current market conditions and is subject to change based on evolving demand, supply chain dynamics, and market conditions. XPeng’s momentum in 2024, including a sizable improvement in gross margins and a measurable lift in vehicle-margin performance, lays a foundation for stronger cash generation and operating leverage in 2025, particularly as more of its next-generation products begin to contribute to revenue and margin expansion.

Overall, the Q4 2024 results illustrate a company in the midst of a multi-quarter margin improvement trajectory driven by scale, efficiency gains in production, a higher-velocity vehicle mix, and a growing ecosystem of services, software, and strategic partnerships. The balance sheet reinforces a solid liquidity position to fund ongoing product development, charging infrastructure expansion, and market expansion, while the revenue and margin trajectory points to a credible path toward healthier profitability metrics as XPeng continues to execute its AI-powered smart EV strategy.

Detailed balance sheet snapshot as of December 31, 2024

To provide a precise view of XPeng’s financial position, the unaudited condensed consolidated balance sheet presents a comprehensive breakdown of current and non-current assets and liabilities, alongside shareholders’ equity. As of December 31, 2024, total assets stood at RMB84,162,541 thousand (US$11,330,688 thousand). Current assets amounted to RMB54,521,629 thousand, reflecting the company’s liquidity and working-capital capacity for near-term operational needs. Among current assets, cash and cash equivalents were RMB21,127,163 thousand in 2023 and RMB18,586,274 thousand in 2024, while restricted cash was RMB3,174,886 thousand in 2023 and RMB3,153,390 thousand in 2024. Short-term deposits were RMB9,756,979 thousand in 2023 and RMB12,931,757 thousand in 2024, with the short-term investments line item at RMB781,216 thousand in 2023 and RMB751,290 thousand in 2024. Receivables, inventory, and other current assets together support the company’s ongoing operations, including installment payment receivables, which totaled RMB1,881,755 thousand in 2023 and RMB2,558,756 thousand in 2024, and inventory of RMB5,526,212 thousand in 2023 and RMB5,562,922 thousand in 2024.

Non-current assets, which totaled RMB29,640,912 thousand in 2023 and RMB32,970,036 thousand in 2024, include long-term deposits, restricted long-term deposits, property, plant and equipment (net), right-of-use assets (net), intangible assets (net), land use rights (net), and long-term investments, along with other non-current assets. Notably, property, plant and equipment (net) was RMB10,954,485 thousand in 2023 and RMB11,521,863 thousand in 2024, and intangible assets (net) were RMB4,948,992 thousand in 2023 and RMB4,610,469 thousand in 2024, while long-term investments stood at RMB2,084,933 thousand in 2023 and RMB1,963,194 thousand in 2024. The company’s long-term balance sheet items reflect ongoing capital expenditure in plant, equipment, and strategic investments aligned with its growth plan.

On the liabilities side, total liabilities were RMB47,834,014 thousand in 2023 and RMB51,431,317 thousand in 2024, with current liabilities totaling RMB36,111,562 thousand in 2023 and RMB39,864,883 thousand in 2024, including short-term borrowings, accounts and notes payable, and other current obligations. Non-current liabilities totaled RMB11,722,452 thousand in 2023 and RMB11,566,434 thousand in 2024, comprising long-term borrowings, operating and finance lease liabilities, deferred revenue, derivative liabilities, deferred tax liabilities, and other non-current liabilities. Shareholders’ equity totaled RMB36,328,527 thousand in 2023 and RMB31,274,788 thousand in 2024, reflecting accumulated deficits and other components of equity, including additional paid-in capital and accumulated other comprehensive income.

Comprehensive income statement highlights for the three months ended December 31, 2024

XPeng’s unaudited condensed consolidated statements of comprehensive loss for the three months ended December 31, 2024 (and comparative periods) show the following key figures, all presented in RMB thousands unless otherwise noted. Revenues for the quarter totaled RMB16,105,096, broken down into vehicle sales of RMB14,671,128 and services and others at RMB1,433,968. Cost of sales for the quarter was RMB13,780,319, with RMB13,200,594 attributed to vehicle sales and RMB579,725 to services and others, yielding a gross profit of RMB2,324,777 and a gross margin of 14.4%.

Operating expenses comprised RMB2,006,463 in R&D and RMB2,275,400 in SG&A, for total operating expenses of RMB4,281,863. Other income, net was RMB196,436, with fair value gain (loss) on derivative liability relating to the contingent consideration of RMB204,637, reflecting the DiDi Smart Auto acquisition’s contingent consideration valuation. Loss from operations amounted to RMB1,556,013, while interest income reached RMB301,177 and interest expense RMB94,001. The company recorded a fair value gain on derivative liability of RMB0 (the quarter’s line item shows a gain of 561,415 for a different period, but for this quarter’s reconciliation, the primary non-operating items are shown in the accompanying narrative). After accounting for income tax (expense) benefit and share of results of equity method investees, XPeng reported a net loss of RMB1,329,973 for the quarter, with net loss attributable to ordinary shareholders of RMB1,329,973.

The quarter’s other comprehensive loss comprised currency translation adjustments, which netted to an overall comprehensive loss attributable to XPeng Inc. of RMB1,570,233. The weighted average number of ordinary shares used in computing net loss per ordinary share for the quarter was 1,787,655,242 on a basic and diluted basis, with 893,827,621 ADSs used in computing net loss per ADS. The basic and diluted net loss per ordinary share for the period stood at RMB0.70, while per ADS it was RMB1.40. Non-GAAP figures for the quarter showed a non-GAAP loss from operations of RMB1,616,975, and non-GAAP net loss of RMB1,390,935, with non-GAAP net loss per ADS of RMB1.47 and non-GAAP net loss per ordinary share of RMB0.73.

The three-month period also included fair value (gain) loss on derivative liability relating to the contingent consideration, which was RMB204,637 in the year’s result, and share-based compensation expenses of RMB143,675, contributing to the overall non-GAAP adjustments. The quarter’s balance of items offered a comprehensive view of XPeng’s performance in a period where the company continued to invest in growth initiatives while navigating the margin expansion trajectory that accompanied higher deliveries and improved cost efficiency.

The comprehensive loss per ordinary share for the quarter was RMB0.70 on a GAAP basis, and RMB0.73 on a non-GAAP basis, while the corresponding ADS figures stood at RMB1.40 (GAAP) and RMB1.47 (non-GAAP). The quarterly earnings narrative reflects a coherent story of mixed dynamics: solid top-line growth, improving gross margins, elevated R&D and marketing investments, and a measured approach to profitability as XPeng advances its AI-enabled platform strategy and broadens the customer value proposition.

Full-year 2024 results: Revenue, profitability, and margin evolution

XPeng’s fiscal year 2024 results confirm a continued expansion path, with notable year-over-year improvements in gross margins, vehicle margins, and overall revenue growth, paired with a disciplined approach to operating costs. Total annual revenues reached RMB40.87 billion (US$5.60 billion), up 33.2% from RMB30.68 billion in 2023. Vehicle sales revenues were RMB35.83 billion (US$4.91 billion) for the year, rising 27.9% versus RMB28.01 billion in 2023, driven by higher deliveries and favorable product mix. Services and others contributed RMB5.04 billion (US$0.69 billion) for 2024, representing an 89.0% year-over-year increase, largely attributed to higher revenue from technical R&D services associated with the platform and software collaborations, including EEA-related agreements with Volkswagen Group.

Cost of sales for 2024 totaled RMB35.02 billion (US$4.80 billion), up 15.9% from RMB30.22 billion in 2023, aligning with the growth in vehicle volumes and expanded services activity. The gross margin for 2024 was 14.3%, a meaningful improvement from 1.5% in the prior year, while vehicle margin was 8.3% for the year, up from negative 1.6% in 2023. Services and others margin was 57.2%, illustrating the increasing profitability of the service and platform-related revenue streams as the business scales.

Operating expenses for 2024 comprised RMB6.46 billion in R&D and RMB6.87 billion in SG&A, representing year-over-year increases of 22.4% and 4.8%, respectively. The higher R&D spend reflected the ongoing development of new vehicle models and enhancements to XPeng’s software and platform capabilities to support long-term growth. Other income, net was RMB0.59 billion, up 26.6% from RMB0.47 billion in the prior year, contributing to the company’s overall profitability narrative. Fair value gain on derivative liability relating to the contingent consideration was RMB0.23 billion for 2024, a non-cash adjustment tied to the acquisition of DiDi’s smart auto business.

Loss from operations for the year 2024 was RMB6.66 billion, improved from RMB10.89 billion in 2023. Non-GAAP loss from operations, excluding share-based compensation and fair value adjustments related to contingent consideration, was RMB6.42 billion for 2024, versus RMB10.37 billion in 2023. Net loss for 2024 was RMB5.79 billion, significantly narrower than RMB10.38 billion in 2023. Non-GAAP net loss for the year was RMB5.55 billion, versus RMB9.44 billion for 2023. Basic and diluted net loss per ADS for 2024 registered RMB6.12 (US$0.84), down from RMB11.92 in 2023, while non-GAAP net loss per ADS was RMB5.87 (US$0.80), versus RMB10.85 in 2023. Basic and diluted net loss per ordinary share were RMB6.12 and non-GAAP RMB5.87, respectively, for 2024.

XPeng provided a forward-looking first-quarter 2025 outlook, anticipating deliveries of 91,000 to 93,000 vehicles and total revenues ranging from RMB15.0 billion to RMB15.7 billion. This guidance implies a year-over-year increase of roughly 317.0% to 326.2% in deliveries and an approximate 129.1% to 139.8% YoY rise in revenue, based on current market conditions. The outlook is predicated on preliminary estimates of demand, operating conditions, and market dynamics and remains subject to change. The company’s investments in product development, R&D, and strategic partnerships are expected to sustain growth momentum and contribute to profitability and free cash flow expansion as 2025 unfolds.

January–February 2025: Early-year deliveries and momentum

Recent developments underscore XPeng’s early-year momentum in 2025. Deliveries in January 2025 totaled 30,350 vehicles, followed by 30,453 vehicles in February 2025, bringing year-to-date deliveries to 60,803 vehicles as of February 28, 2025. This early-year performance aligns with the company’s Q1 2025 guidance, illustrating a continued cadence of resilient demand and strong execution in the company’s core markets. The January–February delivery data helps corroborate the company’s strategic outlook and supports the anticipated path toward the annual delivery target range disclosed for the first quarter of 2025, reflecting sustained customer demand and the ramp in XPeng’s production and distribution network.

Strategic collaboration: XPeng and Volkswagen Group China on charging network expansion

A notable strategic development in XPeng’s 2025 trajectory is the memorandum of understanding with Volkswagen Group China, signed on January 6, 2025, to collaborate on one of the largest super-fast charging networks in China. The collaboration aims to accelerate the deployment of ultra-fast charging capabilities across XPeng’s and Volkswagen Group China’s flagship EV ecosystems, contributing to a more seamless and convenient charging experience for customers while supporting the broader adoption of electric mobility. The strategic partnership highlights XPeng’s emphasis on building a comprehensive, end-to-end mobility platform that integrates vehicle technology, software services, and charging infrastructure to reinforce brand value and customer satisfaction. The collaboration is aligned with XPeng’s broader strategy to leverage alliances and cross-industry expertise to accelerate the deployment of high-performance charging solutions, which is critical for the scaling of EV adoption across China and beyond.

Deep-dive: Unaudited quarterly and annual reconciliations of GAAP and non-GAAP results

XPeng’s reporting includes detailed reconciliations between GAAP and non-GAAP measures to help investors interpret the company’s underlying performance. For the three months ended December 31, 2024, non-GAAP results exclude share-based compensation expenses and fair value adjustments on derivative liabilities related to contingent consideration and other non-cash items, providing a lens into the operating performance that some management teams and investors use to assess the core profitability and cash-generation potential of the business. The non-GAAP loss from operations for the quarter was RMB1,616,975, compared with RMB1,570,948 in Q4 2023 and RMB1,557,? in Q3 2024, illustrating a meaningful, though still negative, level of operating profitability on a non-GAAP basis as XPeng continues to invest in product development and scale-up initiatives. The non-GAAP net loss was RMB1,390,935 for the quarter, versus RMB1,771,333 in Q4 2023 and RMB1,531,572 in Q3 2024, reflecting the impact of the company’s ongoing operational investments and strategic collaborations.

For the year ended December 31, 2024, non-GAAP loss from operations was RMB6,418,728, representing a meaningful improvement over the prior year and a reflection of higher gross margins and disciplined cost management. The year’s non-GAAP net loss was RMB5,550,854, versus RMB9,444,162 in 2023, underscoring the company’s progress toward improved profitability. Basic and diluted non-GAAP net loss per ADS for the year was RMB5.87, compared with RMB10.85 for the prior year, while non-GAAP net loss per ordinary share was RMB5.87 versus RMB10.85 in 2023. These reconciliations demonstrate XPeng’s commitment to transparently communicating the variance between GAAP outcomes and non-GAAP indicators that management uses when evaluating the company’s ongoing performance and future prospects.

The company’s non-GAAP financial measures are, however, not a substitute for GAAP results and carry limitations in terms of comparability with other similarly-titled measures employed by other companies. XPeng emphasizes that non-GAAP results exclude share-based compensation expenses and fair value changes on derivative liabilities related to contingent consideration, among other items, and that readers should review the accompanying reconciliations to GAAP results to gain a complete view of performance. XPeng’s management stresses the importance of evaluating both GAAP and non-GAAP results in conjunction with the firm’s broader business metrics, including vehicle deliveries, gross margin trajectory, and the ramp of services and software revenue streams, when assessing the company’s performance and potential.

Exchange rate information indicates that the RMB-to-USD translation used for presentation purposes in this release is RMB7.2993 to US$1.00, based on the exchange rate on December 31, 2024, from the Federal Reserve Board’s H.10 statistical release. The company notes that currency conversions are for convenience and that they do not imply that the RMB, US dollar, or other currencies could be exchanged at that rate or at any rate on the specified dates. The results are reported in RMB, with USD amounts shown only for convenience.

In addition to the above, XPeng’s disclosures include the usual forward-looking statements disclaimer, cautioning readers that certain statements are “forward-looking” within the meaning of applicable securities laws and subject to risks and uncertainties that could cause actual results to differ materially from expectations. The company identifies several categories of risk, including XPeng’s goals and strategies, expansion plans, financial condition, demand for EVs in China and globally, market acceptance of XPeng’s products and services, relationships with customers, suppliers, service providers, and strategic partners, general economic conditions, and other factors. XPeng emphasizes that actual results could differ due to these various risk factors and encourages investors to review the company’s filings with the U.S. Securities and Exchange Commission for more detailed information about these risks.

Conclusion

XPeng’s December 31, 2024 results reflect a company successfully scaling its automotive and software ecosystem, with meaningful deliveries growth, improving gross and vehicle margins, and a disciplined approach to operating expenses. The quarter’s revenue composition highlights the growing importance of services and software collaborations alongside traditional vehicle sales, while the year 2024 demonstrates a strong revenue growth trajectory and a notable improvement in profitability metrics on both GAAP and non-GAAP bases. The balance sheet shows a solid liquidity position that provides runway for continued investments in product development, technology, and charging infrastructure, supporting XPeng’s objective to transform into an AI-powered global automotive company. The early 2025 momentum—evidenced by positive delivery trends, confirmed strategic partnerships such as the VW charging-network collaboration, and an explicit quarterly and annual outlook—suggests XPeng is on track to expand its market footprint, optimize costs, and advance toward a more robust profitability profile as the company executes its strategic plan around Smart EVs, platform leadership, and a comprehensive charging and services ecosystem.