Ideal Auto's revenue in the first quarter was 3.58 billion yuan, a year-on-year increase of 319.8%

On May 26th, Beijing time, Ideal Auto’s first quarter financial report released this year showed that Ideal Auto’s total revenue in the first quarter was 3.58 billion yuan ($545.7 million), an increase of 319.8% from 851.7 million yuan in the same period last year. Among them, automobile sales revenue was RMB 3.46 billion (US$528.7 million), an increase of 311.8% from RMB 841.1 million in the same period last year.

Ideal Auto said that compared with the same period last year, the main reason for the increase in auto sales revenue was the increase in deliveries brought about by the continuous expansion of the sales network. The financial report shows that Ideal Car delivered 12,579 units in the first quarter, a year-on-year increase of 334.4%. As of March 31 this year, Ideal Motors has expanded to 65 retail centers nationwide, covering 49 cities; after-sales repair centers and authorized sheet metal spray centers have expanded to 135, covering 98 cities.

In the first quarter, the ideal car gross profit margin was 17.3%, of which the car sales gross profit margin was 16.9%, which was an increase from the 8.4% gross profit margin in the first quarter of last year, but it fell from the 17.1% gross profit margin in the fourth quarter of last year. Ideal Motors said that the increase in gross profit margin of automobile sales compared with the same period last year was due to the decrease in the cost of raw materials and the decrease in bicycle manufacturing expenses brought about by the increase in production. Bicycle revenue declined.

As of the first quarter, Ideal Auto was still at a loss. The financial report showed a net loss of 360 million yuan (54.9 million US dollars) in the first quarter, a net loss of 77.1 million yuan in the first quarter of 2020, and a net profit of 107.5 million yuan in the fourth quarter of 2020.

In terms of cash flow reserves, as of the first quarter, ideal auto cash reserves (cash and cash equivalents, restricted cash and time deposits and short-term investment balances) were 30.36 billion yuan (4.63 billion US dollars).

One day before the release of the financial report, Ideal Motor released the 2021 Ideal ONE. The new model has been upgraded in terms of extended range electric system, Ideal AD advanced assisted driving, intelligent cockpit, and ride comfort. The NEDC has a comprehensive cruising range of about 1080 kilometers, and the price is 338,000 yuan will be delivered on June 1 this year. It is reported that after the start of production and sales of the 2021 Ideal ONE, the 2020 model will stop production, which means that the price of the Ideal ONE "increased" by 10,000 yuan compared with the old model with the introduction of new models.

Shen Yanan, co-founder and president of Ideal Motors, said in an interview at the press conference, "Ideal has very strong confidence in the 2021 Ideal ONE, and current orders have this trend. The ideal goal is to exceed 10,000 monthly sales by September this year."

On this basis, Ideal Auto expects vehicle deliveries in the second quarter of this year to be 14,500-15,500 vehicles, an increase of approximately 119.6 percent to 134.7 percent over the same period last year, and an increase of at least 1921 vehicles over the first quarter of this year.