Xpeng Banks CNY 500 Million from Guangdong Govt-Backed Fund

Automotive Author: 叶柳 Editor: 张宇喆 Mar 15, 2021 02:01 PM (GMT+8)

"As a local company in Guandong province, Xpeng has been upholding the innovative spirit of Guangdong enterprises and is committed to exploring the future of the industry," according to Co-founder He Xiaopeng.

Xiaopeng automobile

As per the agreement, Yuecai will invest the capital into Guangzhou Chengxingzhidong Automotive Technology Co., Ltd., a subsidiary of Xpeng Inc., through the Guangdong Industrial Development Fund, to help the EV manufacturer further expand the business.

It is worth mentioning that this is the second round of strategic financing raised by the firm since going public on the US stock market back in August 2020. Prior to this, Xpeng nabbed CNY 4 billion in strategic financing from Guangzhou Kaide Investment Holding Co., Ltd., a wholly-owned enterprise of Guangzhou Development Zone Management Committee.

The Guangzhou-headquartered EV startup announced last week its cumulative deliveries had exceeded 50,000 units.

Last year, Xpeng saw its annual deliveries surge 112.5%, to 27,041 units, according to the company's latest financial results. Notably, the deliveries for the fourth quarter of 2020 soared 302.9% year-on-year to 12,964 units, the highest quarterly number the company ever achieved.

The company has two wholly-owned intelligent manufacturing bases in Guangdong province, one in full operation in Zhaoqing, and the other under construction in Guangzhou.  

The EV-maker released its unaudited 4Q2020 and fiscal year 2020 financial report last week. It saw positive gross profits, with an increase of 151.8% year-on-year in revenues for 2020.

The gross profit margin was 4.6%, compared with -24.0% for the previous fiscal year. Also notable is that it turned positive for a whole year (FY2020) for the first time. Net losses reached CNY 2.73 billion, which was 26% narrower than the CNY 3.69 billion the year before.