[Today's focus]

Ideal Automobile-W (02015.HK) turned a loss into profit for the first time in 2023 and achieved a healthy profit. Cash reserves have increased to 103.67 billion yuan

Ideal Automobile-W (02015.HK) announced unaudited financial results for the quarter and full year ended December 31, 2023.

In the fourth quarter of 2023, vehicle sales revenue was RMB 40.38 billion, up 133.8% year on year and 20.1% month on month; total revenue was RMB 41.73 billion, up 136.4% year on year and 20.3% month on month; gross profit was RMB 9.79 billion, up 174.4% year on year and 28.0% month on month. Net profit was RMB5.75 billion, up 20068.2% year on year, up 104.5% month on month; non-US GAAP net profit was RMB4.59 billion, up 374.2% year on year, up 32.3% month on month.

For the full year of 2023, vehicle sales revenue in 2023 was RMB 122.09 billion, up 172.7% year on year; total revenue was RMB 123.85 billion, up 173.5% year on year; gross profit was RMB 27.50 billion, up 212.8% year on year. Gross margin was 22.2% in 2023, compared to 19.4% in 2022. Net profit was RMB11.81 billion, while net loss for 2022 was RMB2.03 billion. The net diluted earnings per American Depositary Share attributable to common shareholders was RMB 11.10. Net cash from operating activities in 2023 was RMB 50.69 billion, an increase of 586.9% over RMB 7.38 billion in 2022. Free cash flow in 2023 was RMB 44.19 billion, up 1,861.8% from RMB 2.25 billion in 2022.

Mr. Li Xiang, Chairman and CEO of Ideal Auto, commented: “In 2023, when competition is fierce in the NEV market, Ideal Auto achieved excellent results with the three models in the Ideal L series. The annual delivery volume increased by 182.2% year-on-year to 376,030 units, making it the sales leader for NEVs over 300,000 yuan in the Chinese market. In December, we launched OTA5.0 vehicle software to Ideal L series users. Through intelligent driving and comprehensive improvements in intelligent space functions, we brought a better car experience to home users. Significant growth in scale, continuous deepening of R&D, and continuous improvement in operating efficiency drove us to achieve the best financial performance in history in 2023, and also laid a solid foundation for the ideal car to enter 2024, when the product matrix is richer and market demand is more diverse.”

Mr. Li Tie, Chief Financial Officer of Ideal Auto, added, “Ideal Auto once again achieved strong results in the fourth quarter, and many financial indicators hit record highs. Record vehicle deliveries drove fourth-quarter revenue up 136.4% yoy to RMB41.73 billion, and full-year revenue up 173.5% yoy to RMB123.85 billion. With the growth of business scale and optimization of production, supply and marketing collaboration, gross margin reached 23.5% in the fourth quarter and 22.2% for the whole year. Furthermore, 2023 was also the first year the company turned a loss into profit and achieved a healthy profit, with a net profit of RMB 11.81 billion for the whole year. By the end of 2023, our cash reserves had increased to RMB 103.67 billion. In 2024, healthy profitability and financial strength will support Ideal Auto to deepen R&D, expand its business scale, and continue to lead the rapid transformation of China's NEV market.”

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[Financial results]

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[Operational data]

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[Issuance of additional shares]

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