In the first half of fiscal year 2026, XPENG Group reported total operating revenue of RMB 32.777 billion, marking a 3.8% year-on-year decline. However, gross profit surged to RMB 6.766 billion, up by 20.25% year-on-year, driving the overall gross profit margin to 20.6%, a notable increase of 4.1 percentage points compared to the previous year. Despite these positive gross profit figures, the net loss attributable to shareholders of the parent company expanded to RMB 3.121 billion, reflecting a significant 173.35% year-on-year increase.

The automotive segment continued to be the mainstay of XPENG’s revenue, though it faced challenges. The company delivered 165,977 vehicles in the first half of the year, a 15.8% decrease from the same period last year. Consequently, automotive sales revenue dipped to RMB 28.05 billion, down 10.3% year-on-year. In contrast, revenue from services and other businesses experienced robust growth, reaching RMB 4.73 billion, a substantial 67.1% increase compared to the previous year.

XPENG’s commitment to innovation was evident in its research and development (R&D) expenditures, which amounted to RMB 5.82 billion for the first half of the year, a 39% year-on-year rise. These funds were primarily channeled into the development of new vehicle models, physical AI technologies, and humanoid robots, underscoring the company’s focus on cutting-edge advancements.

As of the end of the reporting period, XPENG boasted a strong financial position with RMB 40.48 billion in cash reserves. The company also maintained a sizable workforce of 20,632 employees, including a dedicated R&D team exceeding 8,700 professionals.

Looking ahead, XPENG Group has set its sights on the third quarter of 2026, anticipating vehicle deliveries to range between 115,000 and 121,000 units. This projection represents a slight year-on-year change ranging from a decrease of 0.87% to an increase of 4.30%, coupled with a quarter-on-quarter rise of 11.33% to 17.14%. In terms of revenue, the company expects total revenue to reach between RMB 21.7 billion and RMB 23.4 billion, reflecting a year-on-year growth of 6.47% to 14.81% and a quarter-on-quarter increase of 9.91% to 18.52%.