Ideal Q3 conference call: Current production capacity meets sales targets for the next two years, and plans to release the official version of AD Max 3.0 by the end of the year.
Li Xiang said that the supply bottleneck issues encountered before have been successfully resolved. Currently, the NIO Changzhou manufacturing base has completed capacity upgrades, preparing for further production ramp-up in the fourth quarter.
On November 9th, before the US stock market opened, Ideal Car released its third-quarter earnings report for the period ending September 30, 2023.
According to the financial report data, Ideal Car's revenue in the third quarter was 34.68 billion yuan, surpassing market expectations of 33.641 billion yuan, with a year-on-year growth of 271.2% and a month-on-month growth of 21%. Net profit was 2.813 billion yuan, turning losses into gains compared to market expectations of 2.375 billion yuan, with a month-on-month growth of 21.8%.
Looking ahead to the fourth quarter, Ideal Car expects its delivery volume to be between 125,000 and 128,000 vehicles, with a year-on-year growth of 169.9% to 176.3%; total revenue is expected to be between 38.46 billion yuan and 39.38 billion yuan, with a year-on-year growth of 117.9% to 123.1%.
After the release of the financial report, Ideal Car's stock price rose nearly 7% before the market opened, but then fell back slightly, currently up about 2.7%.
After the financial report, Ideal Car's Chairman and CEO Li Xiang and others attended a conference call to interpret the financial report and answer analysts' questions.
Current production capacity can meet sales targets for the next two years
Li Xiang stated that the supply bottleneck issues that Ideal Car encountered in the past have been successfully resolved, and Ideal has formulated long-term strategies to ensure both the whole vehicle license and the procurement of components for new models next year.
Currently, Ideal has two production bases in Beijing and Changzhou, with three production lines in the Changzhou base producing L6, L7, L8, and L9. Ideal's production capacity can meet sales targets for the next two years.
Future core battle goal: Leading in intelligent driving
At the financial report meeting, Ideal's Chief Engineer Ma Donghui stated that leading in intelligent driving will be Ideal's core battle goal in the future.
In terms of investment, Ideal currently has about 900 personnel in intelligent driving, and the plan is to have over 2,000 personnel in intelligent driving by next year and over 2,500 personnel by 2025. In the future, Ideal will also increase research and development investment in vehicles, computing power, and personnel.
"We have sufficient cash reserves and cash flow to support the funding needed for intelligent driving."
The financial report shows that as of September 30th, Ideal Car's free cash flow reached 13.22 billion yuan, and its cash reserves reached 88.52 billion yuan, reaching a new quarterly high.
Plan to release AD Max 3.0 official version by the end of the year
Regarding intelligent driving, Li Xiang stated that the development of urban NOA on Ideal AD Max is progressing smoothly. Ideal plans to release the official version of AD Max 3.0 software to users by the end of the year, providing full-scene NOA capabilities. In addition, Li Xiang expressed confidence that in the first half of next year, Ideal will become one of the first-tier players in the smart driving industry, after being validated by the market.
The delivery volume in the fourth quarter is expected to reach 125,000 to 128,000 units. Li Xiang mentioned that in October, Ideal's manufacturing base in Changzhou completed capacity upgrades, preparing for further production ramp-up in the fourth quarter.
In terms of supply chain management, Ideal has optimized its management strategies, upgraded its management processes, strengthened efficient collaboration with suppliers, and continuously overcome the bottleneck of component supply. It is expected that Ideal's total delivery volume in the fourth quarter will reach 125,000 to 128,000 units.