News summary
Ideal Automobile Financial Report Showslotomaniafreemegabonus, net profit fell 36 percent in the first quarterslotomaniafreemegabonus.26%slotomaniafreemegabonus, deliveries dropped by 39% month-on-month, due to seasonal factors and lower-than-expected sales. The stock price fell both in Hong Kong and the United States. The company is undergoing large-scale personnel optimization, organizational adjustments focus on quality operations, and the goal is to improve efficiency. At the same time, the all-electric MEGA market performed poorly and the release of all-electric SUVs was postponed.
Newsletter text
Ideal Automobile's share price plummets, leading global new energy vehicle companies encounter countercurrent
On the 21st, the share price of Ideal Automobile on the Hong Kong stock market hit 19.slotomaniafreemegabonus.27% fell sharply to close at HK$80.65. At the same time, the share price of Ideal Automobile also fell significantly on the 20th in U.S. stock trading, closing down 12.78% to close at US$21.71.
According to Ideal Automobile's financial report data, in the first quarter of 2024, the company achieved a net profit attributable to the parent company of 593 million yuan, a year-on-year decrease of 36.26%, and a month-on-month decrease of 89.7%. In terms of revenue, although it increased by 36.4% year-on-year, it decreased by 38.6% month-on-month to 25.63 billion yuan. Delivery reached 80,400 units, a year-on-year increase of 52.9%, and a month-on-month decrease of 39%.
Ideal Automobile pointed out in its financial report that the reasons for the slowdown in revenue growth and the sharp decline in net profit mainly include seasonal factors during the Spring Festival holiday and a decrease in deliveries caused by lower-than-expected sales orders in March. In addition, adjustments in pricing strategies in the first quarter also led to a decrease in average selling prices.
The company has also recently faced rumors of internal personnel optimization. Ideal Automobile launched a new round of personnel optimization after the May Day holiday. The overall optimization ratio exceeded 18%, and the number of people involved may exceed 5600. In specific departments, sales and service operations, recruitment and smart driving teams will all undergo varying degrees of optimization.
Although the company did not respond to rumors of personnel optimization, Li Xiang, Chairman and CEO of Ideal Automobile, said at the financial report meeting that the company is making organizational adjustments with the purpose of establishing a quality operation team to improve the quality of business decisions and execution efficiency. He expects the process to take 12 to 24 months before it shows tangible results.
The market performance of Ideal Car's first all-electric MEGA model has been questioned, which may be a factor in the company's poor performance. MEGA was widely praised before its launch, but its market reputation dropped sharply after a photo posted with negative connotations was recently circulated on the Internet.
Given that MEGA sales fell short of expectations, Ideal Automobile decided to adjust its product launch plan. The company will no longer launch pure electric SUV products this year, but plans to launch new models in the first half of next year. Li Xiang believes that only when the number of self-operated overfilled piles reaches a certain scale will the company consider launching mid-to-high-end pure electric SUV products.
