HK Stock Market Move | XPENG-W (09868) drops more than 3% post-performance, Goldman Sachs points out that its third quarter adjusted net profit is lower than expected.

XPENG-W (09868) fell by over 3% after the performance, with a decrease of 3.08% as of the time of writing, at 50.35 Hong Kong dollars, with a turnover of 8.22 billion Hong Kong dollars. On the news front, Xiaopeng Motors announced its performance for the third quarter of 2024, with the group achieving car sales revenue of 8.8 billion yuan, a year-on-year increase of 12.1%; gross profit margin of 15.3%, an increase of 1.3 percentage points from the previous quarter; car gross profit margin of 8.6%, an increase of 14.7 percentage points year-on-year; total revenue of 10.1 billion yuan, an increase of 18.4% year-on-year and 24.5% quarter-on-quarter; net loss of 1.81 billion yuan, a year-on-year narrowing of 53.5% and a quarter-on-quarter expansion of 40.7%. The non-GAAP net loss for the quarter was 1.532 billion yuan, compared to a net loss of 2.79 billion yuan in the same period last year. Goldman Sachs released a research report stating that Xiaopeng Motors' gross profit in the third quarter exceeded market expectations this year, mainly due to the reduction of fixed costs per vehicle due to a higher production scale, as well as further recognition of revenue from technical services provided by Volkswagen. Additionally, due to investment losses, Xiaopeng Motors' adjusted net profit in the third quarter was 13% lower than Goldman Sachs' expectations. Xiaopeng Motors' EBIT for the third quarter was also 2% lower than market expectations, with the bank attributing it to non-cash losses related to the fair value changes of the group's acquisition of Didi Smart Car business.