XPENG Inc. (XPENG) reported a H1 2026 net loss of RMB 3.12 billion, nearly triple the RMB 1.14 billion loss posted a year earlier, as vehicle deliveries and sales slipped even while margins improved.

Revenue and deliveries • Total revenue declined 3.8 % year on year to RMB 32.78 billion. • Vehicle sales revenue dropped 10.3 % to RMB 28.05 billion, tracking a 15.8 % fall in deliveries to 165,977 units. • Service and other revenue surged 67.1 % to RMB 4.73 billion, buoyed by technical R&D contracts and higher parts sales.

Profitability • Gross margin expanded to 20.6 % from 16.5 % on improved services economics; services margin reached 71.4 %. • Vehicle margin edged down to 12.1 % from 12.6 %. • R&D outlays rose 39.0 % to RMB 5.82 billion as the company accelerated AI and product development; SG&A grew 6.5 % to RMB 4.38 billion. • On a non-GAAP basis, which excludes share-based compensation and derivative fair-value changes, net loss widened to RMB 2.92 billion from RMB 0.81 billion.

Cash and liquidity • Cash, cash equivalents, short-term investments and deposits stood at RMB 40.48 billion as of 30 June, down from RMB 47.66 billion at year-end 2025. • Operating cash outflow reached RMB 11.72 billion versus an inflow of RMB 7.64 billion a year earlier. • Total interest-bearing debt climbed to RMB 19.76 billion, pushing the gearing ratio to 73.2 % (41.8 % at end-2025).

Operational highlights • Physical sales network expanded to 740 stores across 257 cities; self-operated charging sites totalled 3,780 (2,720 ultra-fast). • July and August deliveries were 38,027 and 39,107 vehicles respectively, bringing year-to-date volume to 243,111 units. • New models launched: MONA L03 AI SUV Coupé (July 2026, Munich) and XPENG G9L flagship SUV (September 2026). • Dogotix Share Purchase Agreement signed in August 2026 for up to US$900 million of new equity funding; XPENG will retain majority control.

Balance-sheet commitments • Capital commitments stood at RMB 1.63 billion for plant expansion; cash pledge and asset collateral totalled RMB 9.62 billion. • Short-term bank loans reached RMB 10.07 billion, up from RMB 4.28 billion; long-term secured borrowings were RMB 9.64 billion.

Outlook Management acknowledged macro uncertainty for H2 2026 but reiterated confidence in long-term demand for intelligent mobility and its “Physical AI” roadmap encompassing smart EVs, robotaxis and humanoid robots.