XPeng Inc. Q4 FY2025 earnings call

In 2015, XPANG achieved return-based breakthroughs. In 2025, annual delivery was 429,449, up 126% year-over-year. Mona M03 and B7 Plus were top-selling models. Kunpeng Super Extended Range EV X9 entered mass production. Benefited from physical AI, Turing AI chip mass-produced and delivered to Volkswagen. VLA 2.0 emerged, humanoid robot Iron debuted. Reduced accounts payable turnover days by 60 days. Free cash flow in 2025 close to 5 billion yuan. Ended year with 47.7 billion yuan cash on hand. In 2026, plan to launch four new models, including X-Pan GX in Q2. Overseas sales target to increase threefold, with 680 overseas stores. Second-generation VLA passed autonomous driving physical test. Turing chip total output exceeded 200,000 since third quarter last year. 2026 R&D investment in physical AI-related to increase to 7 billion RMB.

In fiscal year 2025, annual delivery reached 429,449, up 126% year-over-year. Mona M03 became the best-selling battery electric sedan in the 100,000 to 200,000 RMB segment. B7 Plus ranked number one among pure electric sedans in the 150,000 to 300,000 RMB segments. Overseas deliveries nearly doubled to 45,000 units with revenue from overseas markets contributing over 15% of total revenue. Gross margin for fiscal year 2025 reached 18.9%, an increase of 4.6 percentage points year over year. Fourth quarter net profit exceeded 380 million RMB. Total revenues for the fourth quarter of 2025 were $22.25 billion, an increase of 38.2% year-over-year and 9.2% quarter-over-quarter. Revenues from vehicle sales were $19.07 billion, an increase of 30% year-over-year and 5.6% quarter-over-quarter. Revenues from services and others were $3.18 billion, an increase of 121.9% year-over-year and 36.7% quarter-over-quarter. Gross margin was 21.3% for the fourth quarter of 2025.

For the first quarter of 2026, deliveries expected to be between 61,000 and 66,000 units. Revenue expected to be between 12.2 billion and 13.2 billion RMB. March deliveries expected to grow sequentially by 69% to 101% month over month. As VLA2.0 and four new models enter mass production, expect quarterly sales to continuously trend upward and achieve year-over-year growth in the second half of the year to significantly outpace the industry. Goal to double overseas deliveries in 2026, with international business contributing over 20% of total revenue. Plan to introduce four new models to global market, have 680 overseas stores by end of 2026, and expand self-operated ultra-fast charging network to 10 key international markets.

Q: What type of major upgrades should we expect for X-Pen's VLA 2.0 in the coming months? How do you anticipate VLA 2.0 will impact order conversion and user retention in the following quarters?

A: Each quarter at least one large-scale OTA. For example, Q2 OTA will cover more small roads, parking lots, roundabouts. Capability evolving from navigation-enabled public roads to more areas. Expect higher sales volume, conversion rate, and average selling price. User retention high as VLA 2.0 offers smooth and reassuring driving experience.

Q: What is the deployment roadmap for X-Pen Ultra model and VLA 2.0 in the overseas market? And how will the overseas expansion of smart driving affect X-Pen's global sales? And does the smart driving software have the potential to be monetized alone?

A: Started preparation for testing VLA 2.0, plan to gradually roll out by end of this year or beginning of next year. VLA 2.0 has advantage overseas with good performance in multiple markets, especially in small roads. Overseas expansion of smart driving will help increase global sales. Believe smart driving software has potential for monetization.

Q: Regarding the key markets for overseas expansion and when will Kunpeng super hybrid platform models start to go overseas?

A: Key markets include Europe (approx 50% of overseas volume) and Southeast Asia. Plan to launch extended range product line by end of this year to select international markets.

Q: What is the current progress of robot taxi testing? What do you expect the important milestone and the timing for our robot taxi business with safety driver and without safety driver in operations?

A: Hardware development for RoboTaxi smooth. Need to address regulatory requirements. Expect to have safety driver-carrying test drives in second half of this year, no safety driver-carrying in beginning of next year. Full autonomous driving capability expected in about one to three years