The following is the 4q20 financial report teleconference record hopes to achieve the goal of delivering 10000 vehicles per month as soon as possible From ideal recommended by recordtrend.com. And this article belongs to the classification: New energy vehicle industry, Smart car, Automobile industry.
On February 25, 2021, ideal automobile (NASDAQ: Li, hereinafter referred to as “ideal automobile” or “company”) released its unaudited financial reports for the fourth quarter of 2020 and 2020 as of December 31, 2020. In the fourth quarter of 2020, the company delivered 14464 ideal one vehicles, with a month on month growth of 67.0%, setting a new record for quarterly delivery. In 2020, the annual delivery volume will be 32624 vehicles. As of December 31, 2020, the company has 52 retail centers in 41 cities, 114 after-sales maintenance centers and authorized B & P centers, covering 83 cities. In the fourth quarter of 2020, automobile sales revenue was RMB 4.06 billion (US $629.9 million), an increase of 64.6% compared with RMB 2.46 billion in the previous quarter
After the release of the financial report, Li Xiang, founder and CEO of ideal automobile, Shen Yanan, co-founder and President, Wang Kai, chief technology officer and Li Tie, chief financial officer and other senior executives attended the analysts’ conference call to interpret the key points of the financial report and answer questions from analysts.
First line ideal’s revenue in the fourth quarter of last year was 4.15 billion yuan, up 65.2% on a month on month basis
The following is the record of the financial report conference call:
Goldman Sachs analyst: the first question is about the guidelines for the first quarter. The delivery volume in the first quarter decreased month on month, and the sales volume in the past January also decreased. What is the reason? Shanghai will no longer issue plug-in hybrid vehicle license plates from 2023. What is the impact on the company’s business?
Shen Yanan: first of all, I don’t think that the slight decline in quarter on quarter sales means that our business has encountered a bottleneck. The sales volume of our single car in the first quarter has exceeded 5000 vehicles, which shows that the ideal one is a very competitive model. In January 2021, our delivery volume is 5379 vehicles, and that in December is 6126 vehicles, which is the average of two months The delivery volume is 5753 vehicles, which is basically consistent with our previous expectations. Due to the impact of this year’s Spring Festival and the upcoming Lantern Festival, our sales volume will fluctuate seasonally, as well as the impact of the epidemic in northern China, we still hold a relatively conservative forecast for the sales volume in the first quarter. But we are very confident that with the expansion of our offline retail stores and the further control of the epidemic situation, our sales are still good as a whole
In fact, the introduction of this policy in Shanghai is within our expectation, even later than we expected. We think that the details of this policy and its specific implementation will change in the next two years, and we will continue to pay attention to it. Since the implementation of this policy will cause more people to choose to buy EV, PHEV and Erev models before 2023, we may see an increase in sales in 2022.
Although Shanghai has implemented this policy, the overall delivery volume of Shanghai in 2020 accounts for a very small proportion, so the scope of influence of this policy is relatively small. At present, cities without license restrictions in China will reach 55% of the cumulative delivery volume by 2022. We will also continue to strengthen the research and development of BEV (pure electric) platform and Bev models, which will be launched in 2023 It’s online in 2010.
Morgan Stanley analyst: what are the growth guidelines for the ideal offline store in 2021? Can the sales volume of a single store maintain operating efficiency? The second question is that Baidu, apple, Xiaomi and other technology giants are entering the market of electric vehicles. Will this have a structural subversive impact on the field of electric vehicles and driverless vehicles?
Shen Yanan: I think we have entered the second important strategic cycle, that is, we will launch more models of cars in the future. Therefore, we will not take the sales efficiency of 100 cars in a single store as the only goal. We will maintain the sales efficiency at a relatively healthy level. This year, we will put more energy on expanding retail stores to provide more cars after 2022 Prepare for the launch of the new model.
Li Xiang: I think any new technology enterprise wants to enter the field of smart cars, from team building, market research, project approval, experiment, factory manufacturing, and delivery to the market. In a more rational sense, it really takes three years to produce a good product. We can see that the new forces of car making, those enterprises that are quick to launch cars, have died in the end. This is because the models they are quick to launch are generally not competitive. They are very patient in making cars and launching good products. In addition to the R & D time and at least one year’s market validation, basically four years have passed. You can imagine what the ideal car will look like in four years. First, in terms of sales volume and user scale, by the end of 2024, we expect to have hundreds of thousands of vehicles delivered a year, which may lead to a very large accumulation of user scale and brand.
Second, in terms of infrastructure, by 2024, we will have thousands of service outlets to provide services for customers. We will also have our own factories and supply chain to build a better foundation for breaking through one million vehicles. 2024 is our second important strategic cycle. We will have a lot of products, complete a complete coverage from 150000 to 500000, and provide users with a comprehensive service. Our products and technologies will be very mature. We very much welcome these technology enterprises to enter the industry, but time is actually more favorable for us. When the new technology enterprises complete the stage from 0 to 1, our ideal automobile has entered the stage of rapid growth from 1 to 10. This is our basic point of view.
UBS analyst: my first question is about the technical route of pure electric. Li Xiang has accelerated the research and development of pure electric since it came into the market, and then focused on high voltage and fast charging. Now there are two brands, whale and shark. Can we share more technical details and timetable? The second question is about the goal of gross profit margin and operating profit margin in 2021. At present, we feel that the profit margin is very high. Will we strategically choose a lower profit margin and a higher market share in 2021, and how to think about the goal of profit margin in the balance of price and volume?
Li Xiang: the reason why we use the high-voltage platform is to improve the whole charging efficiency, charging speed and charging experience. We have been studying fast charging since the beginning of its establishment. Whether it is the release of national regulations or technology, it has reached a relatively mature stage, so we also speed up the research and development of pure electric.
In the whole high-voltage pure electricity platform, the core technology is in four aspects. The first is the battery charging rate, which should reach 4C or above to maintain the battery life and stability, and the safety should be very good. So in this aspect, although we will use the supplier’s products, we will also invest a lot of energy in research and development, because this is different from the past The demand and safety requirements of the battery are different.
The second is the entire electric drive system, the entire motor equipment and motor efficiency will become different. The third is the thermal management system, which can keep the whole charging speed at a high level as far as possible, and it has become the biggest challenge for a battery to dissipate heat. Or in the ultra-low temperature environment of minus 20 ℃ to minus 25 ℃, the CO2 heat pump air conditioning system is the foundation of our technology research and development. Finally, it is very important to have a high-power charging network. To achieve 500 a, 400 kW charging network, including charging equipment, we have to carry out our own research and development. Users can achieve 80% experience in 10-15 minutes, and the business efficiency is very high. In addition to the public charging facilities in the country, we will also invest in building a large number of charging facilities, which is part of the technology.
In terms of release time, from 2020, ideal car will release at least two new products every year, and will deliver charging series products to users in 2023, which is a clear time point. At the same time, the coverage of the ideal price will be very wide. Next, we will cover the price from 150000 to 500000. At the same time, facing the future, our core power and task is to effectively replace fuel vehicles. Our high-voltage charging technology and products of both platforms will be enriched to attract more users to convert fuel vehicles into electric vehicles. This is our general plan.
Li Tie: in 2020, the annual gross profit rate will be about 16%. In 2021, the gross profit rate is expected to be between 19% and 20%. The main reason is the growth of delivery volume. We will not give any guidance to the profit margin, because we will invest more in R & D and the expansion of offline sales network, so we will not give any guidance in this respect.
Credit Suisse analyst: my first question is about smart cars. What kind of plans or milestones does the management have this year? How to prove that an ideal car can surpass a company like Tesla or Wellcome? Second, the guideline for offline stores was 120. Has it changed? Compared with last year, it has doubled. Does that mean that this year’s sales will also double?
Wang Kai: in 2021, we will invest a lot of money. In R & D, we will develop our own new infrastructure, including automatic driving, computing and operation system. The product will be available in 2022. Our industry peers will provide consumers with some similar or different new features, which is certain. From an engineering point of view, we will expand our R & D team again, which is also the reason for our establishment of Shanghai R & D center. Therefore, in terms of competition, we are very confident that we can win in efficiency. So with the continuous strengthening of our research and development, new technologies such as automatic driving will soon be available.
Shen Yanan: our expansion plan has entered the second stage. Now the ideal car has been more and more well known by users, so we have changed our brand plan accordingly. This year, our goal is to open 200 ideal offline sales stores in 100 cities across the country. This is a very ambitious plan. Of course, our expanding sales network will lead the delivery Volume growth, but also strengthen our brand image, the goal of all this is to prepare for the launch of new models in 2022.
CICC analyst: my first question is about the overseas strategy, and my second question is about the battery route. We can see that some of our competitors have begun to deliver cars in Norway or enter the European market. The management has mentioned that the overseas market is not the focus of the current strategy, so has the management’s attitude changed at present? Have you ever considered using lithium iron instead of ternary batteries? Annual sales guidance?
Shen Yanan: our Erev platform does not plan to use lithium iron batteries. This is because of two reasons. First, the current market iron lithium batteries can not meet the performance requirements of Erev models. This is because the performance requirements of Erev are different from other models. Second, the price performance ratio of iron lithium batteries for Erev is not very high. However, if it is Bev models, both batteries are planned to be used.
Li Tie: I think it’s too early to give a guideline for the whole year. We hope to reach the target of delivering 10000 to 12000 vehicles per month as soon as possible.
Analyst: my first question is about the 2000 employees of Shanghai R & D center. What is the schedule? What is the proportion of their distribution in different directions? The second problem is R & D expenses, which were increasing quarter by quarter last year. But because of the faster growth in delivery, we see the R & D cost diluted in the quarter. How to look at the scale of R & D expenditure and the data of R & D rate in the next two to five years?
Wang Kai: the main goal of the R & D center in Shanghai is to develop more models and carry out some more advanced R & D activities. Now there are 300 engineers in total. By the end of this year, we plan to expand this team to 600.
Li Tie: this year’s R & D expenditure will probably reach 3 billion yuan. We will increase investment in autonomous driving and new models. In three years’ time, the R & D expenditure will increase to 1 billion US dollars, more than half of which will be used for research on autonomous driving technology.
Ideal car prospectus: revenue of 852 million yuan in the first quarter ideal car: 4646 vehicles delivered in November 2020, another record of monthly delivery ideal car: 4q20 revenue of 4.15 billion yuan, up 65.2% month on month ideal car: 3q20 total revenue of 2.511 billion yuan, up 28.9% year on year Weilai may be listed in China Weilai: the sales volume will reach a new high in June 2020, 2q20 will deliver more than 10000 units Weilai: 1q20’s total revenue will reach 1.372 billion, 3838 new vehicles will be delivered Weilai: 2q20’s call minutes predict that Q3 will deliver 11000 units, battery rental mode will reduce the threshold Weilai: the number of vehicles delivered in August 2020 will reach 3965 units, double the same period last year, gaoweilai: the delivery volume will exceed 7000 units in December 2020 Weilai: 3q19 financial report teleconference record Li Bin said he was not worried about the competition of Tesla Model 3 domestic version China Auto Association: Tesla’s localization has a great impact on Chinese brand cars
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