Xpeng Inc 6-K, filed Sep 22, 2025
Xpeng Inc. (XPEV)
About this 6-K
Xpeng Inc filed this 6-K on September 22, 2025.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
September 2025
Commission File Number: 001-39466
XPENG INC.
No. 8 Songgang Road, Changxing Street
Cencun, Tianhe District, Guangzhou
Guangdong 510640
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Table of Contents
Table of Contents
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| XPENG INC. | ||
| By: | /s/ Xiaopeng He | |
| Name: | Xiaopeng He | |
| Title: | Chairman and Chief Executive Officer | |
Date: September 22, 2025
3
Exhibit 99.1
2025 INTERIM REPORT XPENG INC NYSE: XPEV HKEX: 9868 (A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability)
CONTENTS 2
4
12
13
16
Key Achievements
Management Discussion and Analysis
Report on Review of Interim Financial Statements
Unaudited Condensed Consolidated Balance Sheets
Unaudited Condensed
Consolidated Statement of
Comprehensive Loss
18 Unaudited Condensed
Consolidated Statement of
Changes in Shareholders’ Equity
20 Unaudited
Condensed Consolidated Statement of
Cash Flows
23 Notes to the Unaudited
Condensed Consolidated
Financial Statements
97
113
115
General Information
Corporate Information
Definitions
2 XPeng Inc.
Key Achievements
OPERATIONAL AND FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2025
Total deliveries of vehicles were 197,189 in the six months ended June 30, 2025, representing an increase of 279.0% from 52,028 in the six months ended
June 30, 2024.
XPENG’s physical sales network had a total of 677 stores, covering 224 cities as of June 30, 2025.
XPENG self-operated charging station network reached 2,348 stations, including 1,304 XPENG S4 and S5 ultra-fast charging stations as of June 30, 2025.
Total revenues were RMB34.09 billion in the six months ended June 30, 2025, representing an increase of 132.5% from RMB14.66 billion in the six months ended June 30,
2024.
Revenues from vehicle sales were RMB31.25 billion in the six months ended June 30, 2025, representing an increase of 152.8% from RMB12.36 billion in the
six months ended June 30, 2024.
Gross margin was 16.5% in the six months ended June 30, 2025, compared with 13.5% in the six months ended June 30,
2024.
Vehicle margin, which is gross profit of vehicle sales as a percentage of vehicle sales revenues, was 12.6% in the six months ended June 30, 2025,
compared with 6.0% in the six months ended June 30, 2024.
Net loss was RMB1.14 billion in the six months ended June 30, 2025, compared with RMB2.65
billion in the six months ended June 30, 2024. Excluding share-based compensation expenses and fair value loss (gain) on derivative liability relating to the contingent consideration, non-GAAP net loss was RMB0.81 billion in the six months
ended June 30, 2025, compared with RMB2.63 billion in the six months ended June 30, 2024.
Net loss attributable to ordinary shareholders of XPENG was
RMB1.14 billion in the six months ended June 30, 2025, compared with RMB2.65 billion in the six months ended June 30, 2024. Excluding share-based compensation expenses and fair value loss (gain) on derivative liability relating to the
contingent consideration, non-GAAP net loss attributable to ordinary shareholders of XPENG was RMB0.81 billion in the six months ended June 30, 2025, compared with RMB2.63 billion in the six months ended June 30, 2024.
Basic and diluted net loss per American depositary share (ADS) were both RMB1.20 and basic and diluted net loss per ordinary share were both RMB0.60 for the six months ended
June 30, 2025. Each ADS represents two Class A ordinary shares.
Non-GAAP basic and diluted net loss per ADS were both RMB0.85 and non-GAAP basic and
diluted net loss per ordinary share were both RMB0.43 for the six months ended June 30, 2025.
Cash and cash equivalents, restricted cash, short-term
investments and time deposits were RMB47.57 billion as of June 30, 2025, compared with RMB41.96 billion as of December 31, 2024. Time deposits include restricted short?term deposits, short-term deposits, current portion and non-current
portion of restricted long-term deposits, current portion and non-current portion of long-term deposits.
2 0 2 5 INTERIM REPORT 3
Key Achievements
RECENT DEVELOPMENTS
Deliveries in July 2025
Total deliveries were 36,717 vehicles in July 2025.
As of July 31, 2025, year-to-date total deliveries were 233,906 vehicles.
Deliveries in
August 2025
Total deliveries were 37,709 vehicles in August 2025.
As of
August 31, 2025, year-to-date total deliveries were 271,615 vehicles.
Launch of G7
On July 3, 2025, XPENG officially launched the G7, a smart electric family SUV and started deliveries in the same month.
Launch of Next P7
On August 27, 2025, XPENG officially launched the Next P7, a future
luxury sports sedan.
Entry into Agreement on Expanding E/E Architecture Technical Collaboration with the Volkswagen Group
On August 15, 2025, XPENG and the Volkswagen Group announced entry into an agreement on expanding technical collaboration with respect to Electrical/Electronic architecture
(“E/E Architecture”). For details, please refer to the announcement of the Company dated August 15, 2025.
4 XPeng Inc.
Management Discussion and Analysis
FINANCIAL REVIEW
Total revenues were RMB34.09 billion in the six months ended June 30, 2025, representing an increase of 132.5% from RMB14.66 billion in the six months ended June 30,
2024.
Revenues from vehicle sales were RMB31.25 billion in the six months ended June 30, 2025, representing an increase of 152.8% from RMB12.36 billion in the
six months ended June 30, 2024. The year-over-year increase was mainly attributable to higher deliveries.
Revenues from services and others were RMB2.83
billion in the six months ended June 30, 2025, representing an increase of 23.3% from RMB2.30 billion in the six months ended June 30, 2024. The year-over-year increase was mainly attributable to the increased revenues from technical
research and development services (“technical R&D services”) and increased revenue from parts and accessories sales in line with higher accumulated vehicle sales.
Cost of sales was RMB28.46 billion in the six months ended June 30, 2025, representing an increase of 124.4% from RMB12.68 billion in the six months ended June 30, 2024.
The year-over-year increase was mainly in line with vehicle deliveries as described above, partially offset by ongoing cost reduction.
Gross margin was 16.5% in
the six months ended June 30, 2025, compared with 13.5% in the six months ended June 30, 2024.
Vehicle margin was 12.6% in the six months ended
June 30, 2025, compared with 6.0% in the six months ended June 30, 2024. The year-over-year increase was primarily attributable to the ongoing cost reduction and improvement in product mix of models.
Services and others margin was 60.1% in the six months ended June 30, 2025, compared with 54.1% in the six months ended June 30, 2024. The year-over-year increase was
primarily attributable to the higher gross margin from the aforementioned technical R&D services revenue.
Research and development expenses were RMB4.19
billion in the six months ended June 30, 2025, representing an increase of 48.6% from RMB2.82 billion in the six months ended June 30, 2024. The year-over-year increase was mainly due to higher expenses related to the development of new
vehicle models and technologies as the Company expanded its product portfolio to support future growth.
Selling, general and administrative expenses were RMB4.11
billion in the six months ended June 30, 2025, representing an increase of 38.9% from RMB2.96 billion in the six months ended June 30, 2024. The year-over-year increase was primarily attributable to the higher commission to the franchised
stores and higher logistics and warehousing expenses driven by higher sales volume.
2 0 2 5 INTERIM REPORT 5
Management Discussion and Analysis
Other income, net was RMB0.78 billion in the six months
ended June 30, 2025, representing an increase of 121.4% from RMB0.35 billion in the six months ended June 30, 2024. The year-over-year increase was primarily due to the receipt of government subsidies.
Fair value (loss) gain on derivative liability relating to the contingent consideration was loss of RMB0.08 billion in the six months ended June 30, 2025, compared with gain
of RMB0.19 billion in the six months ended June 30, 2024. This non-cash (loss) gain resulted from the fair value change of the contingent consideration related to the acquisition of DiDi Global Inc. (“DiDi”)’s smart auto
business.
Loss from operations was RMB1.98 billion in the six months ended June 30, 2025, compared with RMB3.26 billion in the six months ended June 30,
2024.
Non-GAAP loss from operations, which excludes share-based compensation expenses and fair value loss (gain) on derivative liability relating to the contingent
consideration, was RMB1.65 billion in the six months ended June 30, 2025, compared with RMB3.23 billion in the six months ended June 30, 2024.
Net loss
was RMB1.14 billion in the six months ended June 30, 2025, compared with RMB2.65 billion in the six months ended June 30, 2024.
Non-GAAP net loss, which
excludes share-based compensation expenses and fair value loss (gain) on derivative liability relating to the contingent consideration, was RMB0.81 billion in the six months ended June 30, 2025, compared with RMB2.63 billion in the six months
ended June 30, 2024.
Net loss attributable to ordinary shareholders of XPENG was RMB1.14 billion in the six months ended June 30, 2025, compared with
RMB2.65 billion in the six months ended June 30, 2024.
Non-GAAP net loss attributable to ordinary shareholders of XPENG, which excludes share-based
compensation expenses and fair value loss (gain) on derivative liability relating to the contingent consideration, was RMB0.81 billion in the six months ended June 30, 2025, compared with RMB2.63 billion in the six months ended June 30,
2024.
Basic and diluted net loss per ADS were both RMB1.20 in the six months ended June 30, 2025, compared with RMB2.81 in the six months ended June 30,
2024.
Non-GAAP basic and diluted net loss per ADS were both RMB0.85 in the six months ended June 30, 2025, compared with RMB2.79 in the six months ended
June 30, 2024.
LIQUIDITY AND CAPITAL RESOURCES
The Group has been
incurring losses from operations since inception. The Group incurred net losses of RMB1.14 billion and RMB2.65 billion for the six months ended June 30, 2025 and 2024, respectively. Accumulated deficit amounted to
6 XPeng Inc.
Management Discussion and Analysis
RMB42.74 billion as of June 30, 2025. Net cash
provided by operating activities was approximately RMB7.64 billion for the six months ended June 30, 2025 and net cash used in operating activities was approximately RMB7.39 billion for the six months ended June 30, 2024.
The Group’s liquidity is based on its ability to enhance its operating cash flow position, obtain capital financing from equity interest investors and borrow funds to fund
its general operations, research and development activities and capital expenditures. The Group’s ability to continue as a going concern is dependent on management’s ability to execute its business plan successfully, which includes
increasing market acceptance of the Group’s products to boost its sales volume to achieve economies of scale while applying more effective marketing strategies and cost control measures to better manage operating cash flow position and
obtaining funds from outside sources of financing to generate positive financing cash flows. With the completion of its initial public offering and follow-on offering on New York Stock Exchange in August and December 2020, the Group received the net
proceeds, after deducting the underwriting discounts and commissions, fees and offering expenses, of RMB11.41 billion and RMB15.98 billion, respectively. In July 2021, with the completion of its global offering, including the Hong Kong Public
Offering and the International Offering, on the Hong Kong Stock Exchange, the Group further received the net proceeds, after deducting the underwriting discounts and commissions, of HKD15.82 billion. In December 2023, with the completion of the
investment by the Volkswagen, the Group received the net proceeds, after deducting related costs and expenses, of RMB5.02 billion.
As of June 30, 2025, the
balance of cash and cash equivalents, restricted cash, excluding RMB0.01 billion (December 31, 2024: RMB0.01 billion) restricted as to withdrawal or use for legal disputes, short-term investments and time deposits was RMB47.56 billion (December 31,
2024: RMB41.95 billion).
The following table provides information regarding our cash flows for the six months ended June 30, 2025 and 2024:
For the Six Months Ended June 30,
2025 2024
RMB RMB
(RMB in thousands)
Cash, cash equivalents and restricted cash at beginning of the period 21,739,664 24,302,049
Net cash provided by (used in) operating activities 7,636,590(7,391,612)
Net cash (used in) provided by investing activities(5,387,364) 675,525
Net
cash (used in) provided by financing activities(907,543) 90,392
Effects of exchange rate changes on cash, cash equivalents and restricted cash 259,220
28,390
Net increase (decrease) in cash, cash equivalents and restricted cash 1,600,903(6,597,305)
Cash, cash equivalents and restricted cash at end of the period 23,340,567 17,704,744
2 0 2 5 INTERIM REPORT 7
Management Discussion and Analysis
INTEREST-BEARING BANK AND OTHER BORROWINGS
Short-term Bank Loans
As of June 30, 2025, the Group’s short-term borrowings from
banks in the PRC amounted to RMB3.20 billion in aggregate. The effective interest rate of these borrowings was 2.09% per annum. As of December 31, 2024, the Group’s short-term borrowings from banks in the PRC amounted to RMB4.61
billion in aggregate. The effective interest rate of these borrowings was 2.24% per annum.
Long-term Bank Loans
As of June 30, 2025 As of December 31, 2024
Current Current
portion portion
according according
to the Effective to the Effective
Outstanding repayment Long-term interest Outstanding
repayment Long-term interest
Ref. Company loan schedule portion rate loan schedule portion rate
RMB in RMB in RMB in RMB in RMB in RMB in
billion billion billion billion billion billion
1 Zhaoqing XPeng
Automobile Co., Ltd. 1.26 0.50 0.76 4.23% 1.49 0.23 1.26
4.05%
2 Zhaoqing Xiaopeng
New Energy
Investment Co., Ltd. 1.64 0.96 0.68 3.16% 1.24 0.74 0.50 3.04%
Guangzhou Xiaopeng Motors
Financing
Lease Co., Ltd. 0.15 0.02 0.13 3.80% 0.16 0.02 0.14 3.80%
Guangdong
Xiaopeng Motors Technology
Group Co., Ltd. 1.00 0.01 0.99 2.28% 0.50 0.00 0.50 2.35%
Xiaopeng Automobile Central China
(Wuhan) Co., Ltd. 2.00 0.20 1.80 3.55% 2.08 0.18 1.90 3.81%
6 Guangzhou Pengyue
Automobile
Development Co., Ltd. 0.64 0.01 0.63 3.13% 0.32 0.01 0.31 3.43%
7 Guangzhou Xiaopeng
New Energy
Automobile Co., Ltd. 0.82 0.05 0.77 4.46% 0.83 0.01 0.82 4.56%
TOTAL 7.51 1.75 5.76 — 6.62 1.19 5.43 —
8 XPeng Inc.
Management Discussion and Analysis
As of June 30, 2025, the Group obtained secured
borrowings from several banks of RMB7.51 billion in aggregate. The maturity dates ranged from August 2025 to March 2035. As of December 31, 2024, the Group obtained secured borrowings from several banks of RMB6.62 billion in aggregate. The
maturity dates ranged from January 2025 to November 2033.
Moreover, the Group received subsidies from the local government for interest expenses incurred
associated with the borrowings. As of June 30, 2025 and December 31, 2024, the aggregate sum of loans receiving government-subsidized interest amounted to RMB3.58 billion and RMB3.67 billion, respectively. For the six months ended
June 30, 2025 and 2024, upon the acceptance of subsidy application by the local government, the Group recognized the subsidies to reduce the interest expenses capitalized in the construction costs of Zhaoqing manufacturing plant, Guangzhou
manufacturing plant and Wuhan manufacturing base or to reduce the related interest expenses as incurred, if any.
Asset-backed Securities (“ABS”)
In March 2024 and October 2024, the Group entered into asset-backed securitization arrangements with third-party financial institutions and set up two
securitization vehicles to issue senior debt securities to third party investors, which are collateralized by installment payment receivables (the “ABS transferred financial assets”). The Group also acts as a servicer to provide
management, administration and collection services on the ABS transferred financial assets and has the power to direct the activities that most significantly impact the securitization vehicles. The economic interests are retained by the Group in the
form of subordinated interests as well as its obligation to absorb losses under certain circumstances. As a result, the Group consolidated the securitization vehicles. The proceeds from the issuance of debt securities are reported as securitization
debt. The securities will be repaid as collections on the underlying collateralized assets occur and the amounts were included in “Long-term borrowings, current portion” or “Long-term borrowings” according to the contractual
maturities of the debt securities. As of June 30, 2025, the balance of current and non-current portion of the ABS were RMB0.50 billion and RMB0.04 billion, respectively. As of December 31, 2024, the balance of current and non-current
portion of the ABS were RMB0.59 billion and RMB0.23 billion, respectively.
Asset-backed Notes (“ABN”)
In August 2023, the Group entered into asset-backed notes by issuing senior debt notes to third party investors, which are collateralized by installment payment receivables (the
“ABN transferred financial assets”). The Group also acts as a servicer to provide management, administration and collection services on the ABN transferred financial assets and has the power to direct the activities that most
significantly impact the securitization vehicles. The economic interests are retained by the Group in the form of subordinated interests as well as its obligation to absorb losses under certain circumstances. As a result, the Group consolidated the
securitization vehicles. The proceeds from the issuance of debt notes are reported as securitization debt. The notes will be repaid as collections on the underlying collateralized assets occur and the amounts were included in “Long-term
borrowings, current portion” or “Long-term borrowings” according to the contractual maturities. As of June 30, 2025, the balance of current and non-current portion of the ABN were RMB0.01 billion and nil, respectively. As of
December 31, 2024, the balance of current and non-current portion of the ABN were RMB0.08 billion and nil, respectively.
2 0 2 5 INTERIM REPORT 9
Management Discussion and Analysis
As of June 30, 2025, all of the bank loans and other
borrowings of the Group were denominated in RMB and bore fixed and floating interest rate, and the Group had not been in violation of any of the covenants pursuant to the applicable agreement(s) entered with the lenders.
TREASURY POLICY
If the Group determines that its cash requirements exceed the amount of cash
and cash equivalents it has on hand at the time, it may seek to issue equity or debt securities or obtain credit facilities.
PLEDGE OF ASSETS
As of June 30, 2025, the Group pledged restricted cash and restricted deposits of RMB6.57 billion (December 31, 2024: RMB4.75 billion) for bank borrowings and the issuance of
letter of guarantee, bank notes, legal disputes and others. Certain manufacturing buildings of Guangzhou and Zhaoqing plants, the land use right of Wuhan base, Guangzhou Plants, and Guangzhou Xiaopeng technology park and the equipments of Wuhan base
were secured for the long-term bank loan with a total appraised value of RMB5.52 billion (December 31, 2024: RMB5.36 billion).
GEARING RATIO
Gearing ratio equals total debt divided by total equity as of the end of the Reporting Period. Total debt is defined to include short-term borrowings, current portion of long-term
borrowings and long-term borrowings which are all interest-bearing borrowings. As of June 30, 2025, the gearing ratio of the Group is 37.1% (December 31, 2024: 38.8%).
MATERIAL INVESTMENTS AND FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS
For the six
months ended June 30, 2025, the Group did not have any significant investments (including any investment in an investee company with a value of 5% or more of the Group’s total assets as of June 30, 2025). As of June 30, 2025,
the Group did not have future plans for material investments and capital assets.
CAPITAL COMMITMENTS AND CAPITAL EXPENDITURE
As of June 30, 2025, the Group had capital commitments amounting to RMB0.63 billion for the acquisition of property, plant and equipment, which were primarily for Guangzhou
and Zhaoqing plants and Wuhan base, and RMB0.39 billion for other investments.
CONTINGENT LIABILITIES
As of June 30, 2025, the Group did not have any material contingent liabilities.
10 XPeng Inc.
Management Discussion and Analysis
MATERIAL ACQUISITION AND DISPOSAL
For the six months ended June 30, 2025, the Group did not have any material acquisitions and disposals.
RISK MANAGEMENT
Foreign Exchange Risk
The Group uses Renminbi as its reporting currency. Most of the Group’s revenues and expenses are denominated in Renminbi, while the Group also has certain portion of cash
denominated in the U.S. dollar from its financing activities. The functional currency of the Company and subsidiaries in the United States and Hong Kong is the U.S. dollar or HK dollar. The functional currency of subsidiaries in the PRC, the
variable interest entity (“VIE”) and the VIE’ s subsidiaries is the Renminbi. The Group’s exposure to U.S. dollars exchanges rate fluctuation mainly arises from the Renminbi-denominated cash and cash equivalents and other
receivables held by the Group and its subsidiaries whose functional currency is U.S. dollars and the U.S. dollar-denominated other receivables held by the Group and its subsidiaries whose functional currency is Renminbi. The Group may enter into
hedging transactions in an effort to reduce its exposure to foreign currency exchange risk. During the Reporting Period, the Group did not enter into any foreign exchange forward contracts. As of June 30, 2025, the Group did not hold any
foreign exchange forward contracts for hedging purposes.
To the extent that the Group needs to convert U.S. dollars into Renminbi for its operations, appreciation
of the Renminbi against the U.S. dollar would have an adverse effect on the Renminbi amount that the Group receives from the conversion. Conversely, if the Group decides to convert Renminbi into U.S. dollars for the purpose of making payments for
dividends on its Class A ordinary shares or ADSs or for other business purposes, appreciation of the U.S. dollar against the Renminbi would have a negative effect on the U.S. dollar amounts available to the Group.
Interest Rate Risk
The Group’s interest rate risk arises from investments and
borrowings. Investments in both fixed rate and floating rate interest-earning instruments carry a degree of interest rate risk. Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating
rate securities may produce less income than expected if interest rates fall. Borrowings in both fixed rate and floating rate carry a degree of interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk,
while borrowings issued at variable rates expose the Group to cash flow interest rate risk.
During the Reporting Period, the Group had not used any financial
instrument to hedge its exposure to interest rate risk.
2 0 2 5 INTERIM REPORT 11
Management Discussion and Analysis
EMPLOYEES AND REMUNERATION POLICIES
The following table sets forth the breakdown of the Group’s employees by function as of June 30, 2025:
Number of
Function Employees
Research and development 7,334
Sales and marketing 4,678
Manufacturing 3,950
General and administration 95
Operation 574
Total 16,631
The Group primarily recruits the employees through recruitment agencies, on-campus job fairs, referrals, and online channels including the Company’s corporate website and
social networking platforms. The Group has adopted a training policy, pursuant to which technology, corporate culture, leadership and other trainings are regularly provided to the Group’s employees by internal speakers and third-party
consultants.
The Group offers its employees competitive compensation packages and a dynamic work environment that encourages initiative. The Group participates in
various government statutory employee benefit plans, including social insurance, namely pension insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance, and housing funds. In addition, the Group
purchased employer’s liability insurance and additional commercial health insurance to increase insurance coverage of its employees.
BUSINESS OUTLOOK
While macro uncertainties persist into the second half of 2025, we believe the near-term challenges will not change the long-term growth trajectory in the Smart EV
market in China and globally. We are convinced that our upcoming suite of new products will increasingly showcase XPENG’s unswerving long-term investment in advancing electrification and critical smart technologies. We will continue to drive
innovation in our software and hardware products and offer consumers smart electric vehicles that deliver an unparalleled combination of leading-edge technology, brilliant design and an exceptional smart driving experience.
12 XPeng Inc.
Report on Review of Interim Financial Statements
To the Board of Directors of XPeng Inc.
(incorporated in the Cayman Islands with limited liability)
Introduction
We have reviewed the interim financial statements set out on pages 13 to 96, which comprise the interim condensed consolidated balance sheet of XPeng Inc. (the
“Company”) and its subsidiaries (together, the “Group”) as at June 30, 2025 and the interim condensed consolidated statement of comprehensive loss, the interim condensed consolidated statement of changes in
shareholders’ equity and the interim condensed consolidated statement of cash flows for the six-month period then ended, and notes, comprising significant accounting policies and other explanatory information. The Rules Governing the Listing
of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial statements to be in compliance with the relevant provisions thereof and accounting principles generally accepted in the United States
of America (“U.S. GAAP”). The directors of the Company are responsible for the preparation and presentation of these interim financial statements in accordance with U.S. GAAP. Our responsibility is to express a conclusion on these
interim financial statements based on our review and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any
other person for the contents of this report.
Scope of Review
We conducted
our review in accordance with Hong Kong Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” as issued by the Hong Kong Institute of Certified Public
Accountants. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to
our attention that causes us to believe that the interim financial statements of the Group are not prepared, in all material respects, in accordance with U.S. GAAP.
PricewaterhouseCoopers
Certified Public Accountants
Hong Kong, August 19, 2025
2 0 2 5 INTERIM REPORT 13
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except for share
and per share data)
As of June 30, As of December 31,
2025 2024
Note RMB RMB
ASSETS
Current assets
Cash and cash equivalents 2(g) 18,809,493 18,586,274
Restricted cash 2(h) 4,531,074 3,153,390
Short-term deposits 2(i) 13,405,550 12,931,757
Restricted short-term deposits 324,144 110,699
Short-term investments 2(k), 5
1,655,299 751,290
Long-term deposits, current portion 2(i) 1,079,259 452,326
Restricted long-term deposits, current portion 591,322 —
Accounts and
notes receivable, net 6 1,764,392 2,449,629
Installment payment receivables, net, current portion 12 2,671,329 2,558,756
Inventory 7 6,602,952 5,562,922
Amounts due from related parties 26 53,516 43,714
Prepayments and other current assets 8 3,282,626 3,135,312
Total current assets 54,770,956
49,736,069
Non-current assets
Long-term deposits 2(i) 6,055,377 4,489,036
Restricted long-term deposits 18 1,118,577 1,487,688
Property, plant and
equipment, net 9 11,887,778 11,521,863
Right-of-use assets, net 3,863,234 1,261,663
Intangible assets, net 10 4,333,824 4,610,469
Land use rights, net 11 3,254,589 2,744,424
Installment payment receivables, net 12 4,583,734 4,448,416
Long-term
investments 13 2,144,004 1,963,194
Other non-current assets 14 414,886 443,283
Total non-current assets 37,656,003 32,970,036
Total assets 92,426,959
82,706,105
14 XPeng Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except for share
and per share data)
As of June 30, As of December 31,
2025 2024
Note RMB RMB
LIABILITIES
Current liabilities
Short-term borrowings 18 3,199,123 4,609,123
Accounts payable 15 16,958,863 15,181,585
Notes payable 16 13,727,997 7,898,896
Amounts due to related parties 26 984 9,364
Operating lease liabilities, current portion
466,496 324,496
Finance lease liabilities, current portion 12,096 41,940
Deferred revenue, current portion 21 1,491,637 1,275,716
Long-term
borrowings, current portion 18 2,262,827 1,858,613
Accruals and other liabilities 17 9,838,487 8,650,636
Income taxes payable 5,237 14,514
Total current liabilities 47,963,747 39,864,883
Non-current liabilities
Long-term borrowings 18 5,794,528 5,664,518
Operating lease liabilities 4,413,697 1,345,852
Finance lease liabilities 796,947 777,697
Deferred revenue 21 1,051,654 822,719
Derivative liability 5 251,085 167,940
Deferred tax liabilities 330,353 341,932
Other non-current liabilities 19
1,487,581 2,445,776
Total non-current liabilities 14,125,845 11,566,434
Total
liabilities 62,089,592 51,431,317
Commitments and contingencies 27
2 0 2 5 INTERIM REPORT 15
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except for share
and per share data)
As of June 30, As of December 31,
2025 2024
Note RMB RMB
SHAREHOLDERS’ EQUITY
Class A Ordinary shares (US$0.00001 par value; 9,250,000,000 and
9,250,000,000 shares
authorized, 1,557,501,154 and 1,551,709,362
shares issued, 1,553,771,246 and 1,549,404,500 shares outstanding
as of June 30, 2025 and December 31, 2024, respectively) 22 105 104
Class B
Ordinary shares (US$0.00001 par value; 750,000,000 and
750,000,000 shares authorized, 348,708,257 and 348,708,257 shares
issued and outstanding as of June 30, 2025 and December 31, 2024,
respectively) 22 21 21
Additional paid-in capital 70,918,187 70,671,685
Statutory and other reserves 111,841 95,019
Accumulated
deficit(42,744,171)(41,585,549)
Accumulated other comprehensive income 2,051,384 2,093,508
Total shareholders’ equity 30,337,367 31,274,788
Total liabilities and
shareholders’ equity 92,426,959 82,706,105
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
16 XPeng Inc.
Unaudited Condensed Consolidated Statement of
Comprehensive Loss
(All amounts in thousands, except for share and per share data)
For the Six Months Ended
June 30,
2025 2024
Note RMB RMB
Revenues
Vehicle sales 20 31,252,994 12,363,263
Services and others 20 2,832,039
2,296,240
Total revenues 34,085,033 14,659,503
Cost of sales(1)
Vehicle sales(27,327,991)(11,626,329)
Services and others(1,130,182)(1,053,631)
Total cost of sales(28,458,173)(12,679,960)
Gross profit 5,626,860 1,979,543
Operating expenses(1)
Research and development expenses
2(t)(4,186,868)(2,817,200)
Selling, general and administrative expenses 2(u)(4,113,305)(2,962,048)
Other income, net 2(w) 781,442 352,883
Fair value (loss) gain on derivative
liability relating to
the contingent consideration(84,225) 191,793
Total operating expenses, net(7,602,956)(5,234,572)
Loss from operations(1,976,096)(3,255,029)
Interest income 599,451 755,327
Interest expenses(204,096)(166,520)
Investment gain (loss) on long-term investments 13 104,054(55,292)
Exchange
gain from foreign currency transactions 273,132 7,886
Other non-operating income, net 23,729 7,617
Loss before income tax benefit and share of results of
equity method
investees(1,179,826)(2,706,011)
Income tax benefit 24 1,430 32,713
Share of
results of equity method investees 13 36,596 20,727
Net loss(1,141,800)(2,652,571)
Net loss attributable to ordinary shareholders of XPeng Inc.(1,141,800)(2,652,571)
2 0 2 5 INTERIM REPORT 17
Unaudited Condensed Consolidated Statement of Comprehensive Loss
(All amounts in thousands,
except for share and per share data)
For the Six Months Ended
June 30,
2025 2024
Note RMB RMB
Net loss(1,141,800)(2,652,571)
Other comprehensive (loss) income
Foreign currency translation adjustment, net of tax(42,124) 113,393
Total
comprehensive loss attributable to XPeng Inc.(1,183,924)(2,539,178)
Comprehensive loss attributable to ordinary shareholders of XPeng Inc.(1,183,924)(2,539,178)
Weighted average number of ordinary shares used in computing net loss
per ordinary share
Basic and diluted 25 1,900,912,109
1,886,710,018
Net loss per ordinary share attributable to ordinary shareholders
Basic and diluted 25(0.60)(1.41)
(1) Share-based compensation was
allocated in cost of sales and operating expenses as follows:
For the Six Months Ended
June 30,
2025 2024
Note RMB RMB
Cost of sales 363 1,236
Selling, general and administrative expenses 78,407 66,901
Research and development expenses
167,733 147,880
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
18 XPeng Inc.
Unaudited Condensed Consolidated Statement of
Changes in Shareholders’ Equity
(All amounts in thousands, except for share and per share data)
Accumulated
Statutory Other Total
Ordinary Shares Treasury Shares Additional and Other
Comprehensive Accumulated Shareholders’
Shares Par Value Shares Par Value Paid-in Capital Reserves Income Deficit Equity
Note RMB RMB RMB RMB RMB RMB RMB
Balance as of
December 31, 2024 1,900,417,619 126(2,304,862)(1) 70,671,685 95,019 2,093,508(41,585,549) 31,274,788
Share-based
compensation 23 — — — — 246,503 — —
— 246,503
Issuance of treasury shares 22 5,123,584 1(5,123,584)(1) — — — — —
Transfer from treasury
shares to outstanding
ordinary shares for vested
RSUs 22 — — 3,698,538 1(1) —
— — —
Issuance of ordinary shares
for vested RSUs 22
668,208 — — — — — — — —
Foreign currency
translation adjustment,
net of tax — — — — —
—(42,124) —(42,124)
Net loss — — — — — — —(1,141,800)(1,141,800)
Appropriations to reserves — — — — — 16,822 —(16,822) —
Balance as of June 30, 2025 1,906,209,411 127(3,729,908)(1) 70,918,187 111,841 2,051,384(42,744,171) 30,337,367
2 0 2 5 INTERIM REPORT 19
Unaudited Condensed Consolidated Statement of Changes in Shareholders’ Equity
(All
amounts in thousands, except for share and per share data)
Accumulated
Statutory Other Total
Ordinary Shares Treasury Shares Additional and Other
Comprehensive Accumulated Shareholders’
Shares Par Value Shares Par Value Paid-in Capital Reserves Income Deficit Equity
Note RMB RMB RMB RMB RMB RMB RMB
Balance as of
December 31, 2023 1,886,817,266 125(2,811,614)(1) 70,198,031 60,035 1,830,638(35,760,301) 36,328,527
Share-based compensation 23 — — — — 216,017 — — — 216,017
Issuance of treasury shares 22 4,716,344 —(4,716,344) — — — — — —
Transfer from treasury shares
to outstanding ordinary
shares for vested RSUs 22 — — 3,363,176 — — — — — —
Issuance of ordinary shares
for vested RSUs 22 684,874 — — — —
— — — —
Foreign currency translation
adjustment, net of tax — — — — — — 113,393 — 113,393
Net loss — — — — — —
—(2,652,571)(2,652,571)
Appropriations to reserves — — — — — 19,302 —(19,302) —
Balance as of June 30, 2024 1,892,218,484 125(4,164,782)(1) 70,414,048 79,337 1,944,031(38,432,174) 34,005,366
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
20 XPeng Inc.
Unaudited Condensed Consolidated Statement of
Cash Flows
(All amounts in thousands, except for share and per share data)
For the Six Months Ended
June 30,
2025 2024
Note RMB RMB
Cash flows from operating activities
Net loss(1,141,800)(2,652,571)
Adjustments to reconcile net loss to net cash provided by (used
in)
operating activities:
Depreciation of property, plant and
equipment 9 870,588 864,186
Amortization of intangible assets 10 285,633 247,411
Amortization of right-of-use assets 256,577 162,661
Amortization of land use
rights 11 37,756 24,880
Loss on disposal of property, plant and equipment 2(l) 9,511 8,617
Loss of disposal of intangible asset — 58
Impairment of property, plant
and equipment 71,889 39,816
Current expected credit loss of accounts receivable 2(j) 12,004 10,365
Current expected credit loss of installment payment receivables 2(j) 17,607 19,619
Current expected credit loss of other current and non-current assets 2(j) 3,558 9,065
Inventory write-downs 7 298,123 710,136
Exchange gain from foreign currency
transactions(273,132)(7,886)
Interest income(72,899)(13,587)
Share-based compensation 23 246,503 216,017
Fair value loss
(gain) on derivative liability relating to the contingent
consideration 84,225(191,793)
Investment (gain) loss on long-term investments 13(104,054) 55,292
Share of
results of equity method investees 13(36,596)(20,727)
Changes in operating assets and liabilities:
Accounts and notes receivable 673,233 570,710
Inventory(1,446,802)(746,532)
Amounts due from related parties(9,802)(20,585)
Prepayments
and other current assets(102,649)(93,911)
Other non-current assets(1,452) 14,492
Accounts payable 1,777,278(5,391,415)
Notes payable 5,829,101(429,021)
Deferred revenue 444,856 256,847
Operating lease
liabilities(196,224)(143,684)
Accruals and other liabilities 1,385,439(648,982)
Other non-current liabilities(987,147) 96,838
Installment payment
receivables(265,498)(269,586)
Amounts due to related parties(8,380)(30,705)
Deferred tax liabilities(11,579)(39,746)
Income taxes payable(9,277) 2,109
Net cash provided by (used in) operating activities 7,636,590(7,391,612)
2 0 2 5 INTERIM REPORT 21
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in thousands, except for
share and per share data)
For the Six Months Ended
June 30,
2025 2024
Note RMB RMB
Cash flows from investing activities
Placement of short-term
deposits(617,813)(1,122,522)
Placement of restricted short-term deposits(323,100)(451,868)
Maturities of restricted short term deposits 110,000 —
(Placement)
Maturities of long-term deposits(1,780,000) 3,139,020
Placement of restricted long-term deposits(550,000)(500,000)
(Placement) Maturities of short-term investments(834,811) 543,836
Purchase of
property, plant and equipment(1,381,606)(1,024,534)
Receipt of government subsidy related to assets 37,214 —
Purchase of intangible assets(7,690)(2,871)
Disposal of property, plant and
equipment 8,408 94,464
Cash paid for long-term investments(12,791) —
Purchase of retained asset-backed note(44,750) —
Proceeds from
maturities of retained asset-backed note 9,575 —
Net cash (used in) provided by investing activities(5,387,364) 675,525
22 XPeng Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in thousands, except for
share and per share data)
For the Six Months Ended
June 30,
2025 2024
Note RMB RMB
Cash flows from financing activities
Proceeds from borrowings 3,861,640 4,422,121
Repayments of borrowings(4,737,416)(3,831,729)
Repayments of
debt from third party investors —(500,000)
Repayments of finance lease liabilities(31,767) —
Net cash (used in) provided by financing activities(907,543) 90,392
Effects of exchange rate
changes on cash, cash equivalents and restricted cash 259,220 28,390
Net increase (decrease) in cash, cash equivalents and restricted cash 1,600,903(6,597,305)
Cash, cash equivalents and restricted cash at beginning of the period 21,739,664 24,302,049
Cash, cash equivalents and restricted cash at end of the period 23,340,567 17,704,744
Supplemental disclosure of cash flows information
Cash paid for interest, net
of amounts capitalized(268,494)(209,748)
Acquisition of property, plant and equipment included in liabilities 1,202,283 531,678
Cash paid for income taxes(8,104)(6,779)
The accompanying notes are an integral part of these
unaudited condensed consolidated financial statements.
2 0 2 5 INTERIM REPORT 23
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Organization and Nature of Operations
(a) Principal activities
XPeng Inc. (“XPeng” or the “Company”) was
incorporated under the laws of the Cayman Islands on December 27, 2018, as an exempted company with limited liability. The Company, its subsidiaries and consolidated variable interest entity (“VIE”) and VIE’s subsidiaries
(“VIEs”, also refer to VIE and its subsidiaries as a whole, where appropriate) are collectively referred to as the “Group”.
The Group
designs, develops and delivers smart electric vehicles. It manufactures all vehicles through its own plants in Zhaoqing and Guangzhou, and its own manufacturing base in Wuhan. As of June 30, 2025, its primary operations are conducted in the
People’s Republic of China (“PRC”).
(b) Initial Public Offering and Global Offering
In August and December 2020, the Company completed its initial public offering (“IPO”) and follow-on offering (“FO”) on the New York Stock Exchange
(“NYSE”).
In July 2021, the Company completed its global offering (“Global Offering”), including the Hong Kong Public Offering and the
International Offering, on the Stock Exchange of Hong Kong Limited (“HKEX”).
24 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Organization and Nature of Operations (continued)
(c) Principal subsidiaries and VIEs
As of June 30, 2025, the Company’s principal
subsidiaries and VIEs are as follows:
Date of Issued and Equity
Place of
incorporation fully paid interest
Principal subsidiaries incorporation or acquisition share capital held Principal activities
Guangzhou Chengxing Zhidong PRC January 09, RMB3,222,800 100% Investment holding
Automotive Technology Co., Ltd. 2015
(“Chengxing”)
Guangzhou Xiaopeng Motors PRC May 12, RMB6,126,316 100% Design and
Technology Co., Ltd.
(“Xiaopeng 2016 technology
Technology”) development
Guangzhou
Xiaopeng Automobile PRC April 07, RMB150,000 100% Design and
Manufacturing Co., Ltd. 2017 technology
development
Guangzhou Xiaopeng Automatic PRC November 18, RMB1,000,000 100% Technology
Driving Technology Co., Ltd. 2019 development
Guangzhou Xiaopeng Smart
Charging PRC June 22, RMB4,745,000 100% Smart charging
Technology Co., Ltd. 2020 technology
development
Guangzhou Zhipeng Manufacturing PRC January 14, RMB1,500,000 100%
Manufacturing of
Co., Ltd. 2021 vehicles
Zhaoqing Xiaopeng New Energy PRC
February 13, RMB8,000,000 100% Manufacturing of
Investment Co., Ltd. (“Zhaoqing 2020 vehicles
Xiaopeng New Energy”)
Zhaoqing Xiaopeng Automobile PRC May 18, RMB9,000,000 100%
Manufacturing of
Co., Ltd. (“Zhaoqing XPeng”) 2017 battery pack
Xiaopeng New Energy Automobile PRC March 28, RMB50,000,000 100% Vehicle wholesale
Sales (Zhaoqing) Co., Ltd 2024 and retail
Xiaopeng Motors Sales Co., Ltd. PRC January 08,
RMB3,500,000 100% Vehicle wholesale
(“Xiaopeng Motors Sales”) 2018 and retail
2 0 2 5 INTERIM REPORT 25
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Organization and Nature of Operations (continued)
Principal subsidiaries and VIEs (continued)
As of June 30, 2025, the Company’s
principal subsidiaries and VIEs are as follows (continued):
Date of Issued and Equity
Place of incorporation fully paid interest
Principal subsidiaries incorporation or acquisition
share capital held Principal activities
Beijing Xiaopeng Automobile Co., Ltd. PRC April 28, RMB50,000 100% Vehicle wholesale
(“Beijing Xiaopeng”) 2018 and retail, design
and technology
development
Xiaopeng Automobile Central China PRC April 30, RMB4,000,000 100% Technology
(Wuhan) Co., Ltd. 2021 development and
(“Wuhan Xiaopeng”) vehicle
retail
Wuhan Xiaopeng Smart PRC August 16, RMB1,500,000 100% Manufacturing
Manufacturing Co., Ltd. 2021 of battery pack
and electric drive
system
Shanghai Xiaopeng Motors PRC February 12, RMB50,000 100% Technology
Technology Co., Ltd. (“Shanghai 2018 development
Xiaopeng”) and vehicle retail
Shenzhen Xiaopeng Automobile PRC January 5, RMB10,000,000 100% Export trading
Supply Chain Management Co., 2024
Ltd
XPeng Huitian Holding Limited BVI October 12, — 100% Investment holding
2020
Dogotix Inc. BVI October 09, US$2 100% Investment holding
2023
XPeng (Hong Kong) Limited Hong Kong February 12, — 100% Investment holding
2019
The English names of the subsidiaries and VIEs represent the best effort by the
management of the Company in translating its Chinese names as they do not have official English name.
26 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Organization and Nature of Operations (continued)
(c) Principal subsidiaries and VIEs (continued)
As of June 30, 2025, the Company’s
principal subsidiaries and VIEs are as follows (continued):
Date of
Place of
incorporation
incorporation or acquisition Principal activities
VIEs
Guangzhou Zhipeng IoV Technology Co., Ltd. PRC May 23, Business of development
(“Zhipeng IoV”) (Note 1(c)(i)) 2018 and the operation of an
Internet of Vehicles
network
Guangzhou Yidian Zhihui Chuxing Technology PRC May 24, Business of provision of
Co., Ltd. (“Yidian Chuxing”) (Note 1(c)(ii)) 2018 online-hailing services
through
online platform
Guangzhou Xintu Technology Co., Ltd. PRC April 27, Surveying and mapping
(“Xintu Technology”) (Note 1(c)(i)) 2021
Guangdong Intelligent Insurance Agent
Co., Ltd. PRC July 22, Insurance agency
(“GIIA”, formerly known as Qingdao Miaobao 2022
Insurance Agency Co., Ltd.) (Note 1(c)(iii))
VIEs’ subsidiary
Jiangsu Zhipeng Kongjian Information PRC June 23, Surveying and mapping
Technology Co.,
Ltd. (“Zhipeng Kongjian”, 2021
formerly known as Jiangsu Zhitu Technology
Co., Ltd., a subsidiary of Xintu Technology)
(Note 1(c)(i))
2 0 2 5 INTERIM REPORT 27
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Organization and Nature of Operations (continued)
Principal subsidiaries and VIEs (continued)
Zhipeng IoV which is primarily engaged in the
business of development and the operation of an Internet of Vehicles network was established by two shareholders of the Company (the “Zhipeng IoV’s Nominee Shareholders”) on May 23, 2018. On May 28, 2018, Xiaopeng
Technology, Zhipeng IoV, and Zhipeng IoV’s Nominee Shareholders entered into a series of contractual agreements, including an equity interest pledge agreement, a loan agreement, exclusive service agreement, exclusive call option agreement and
power of attorney that irrevocably authorized Xiaopeng Technology to exercise the equity owner’s rights over Zhipeng IoV. These agreements provide the Company, as the only shareholder of Xiaopeng Technology, with a controlling financial
interest under ASC 810 in Zhipeng IoV to direct the activities that most significantly impact Zhipeng IoV’s economic performance and enable the Company to obtain substantially all of the economic benefits arising from Zhipeng IoV. Management
concluded that Zhipeng IoV is a variable interest entity of the Company and the Company is the ultimate primary beneficiary of Zhipeng IoV and shall consolidate the financial results of Zhipeng IoV in the Group’s unaudited condensed
consolidated financial statements under U.S. GAAP.
On April 27, 2021, Zhipeng IoV established Xintu Technology and became the only shareholder of Xintu
Technology. On June 23, 2021, Xintu Technology acquired 100% of the equity interest of Zhipeng Kongjian which possesses surveying and mapping qualification certificate, which is determined to be an asset acquisition.
On August 12, 2021, Guangzhou Kuntu Technology Co., Ltd. (“Kuntu Technology”), a company controlled by the Zhipeng IoV’s Nominee Shareholders, acquired 100%
of the equity interest of Xintu Technology from Zhipeng IoV. On the same day, Xiaopeng Technology, Xintu Technology and Kuntu Technology entered into a series of contractual agreements, including an equity interest pledge agreement, a loan
agreement, exclusive service agreement, exclusive call option agreement and power of attorney that irrevocably authorized Xiaopeng Technology to exercise the equity owner’s rights over Xintu Technology. These agreements provide the Company, as
the only shareholder of Xiaopeng Technology, with a controlling financial interest under ASC 810 in Xintu Technology to direct the activities that most significantly impact Xintu Technology’s economic performance and enable the Company to
obtain substantially all of the economic benefits arising from Xintu Technology. Management concluded that Xintu Technology is a variable interest entity of the Company and the Company is the ultimate primary beneficiary of Xintu Technology and
shall consolidate the financial results of Xintu Technology in the Group’s unaudited condensed consolidated financial statements under U.S. GAAP. As of June 30, 2025, Xintu Technology did not have significant operations, nor any material
assets or liabilities.
28 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Organization and Nature of Operations (continued)
Principal subsidiaries and VIEs (continued)
(continued)
On September 6, 2021, Xiaopeng Technology (wholly owned by the Company) acquired 50% equity interests in Zhipeng IoV from Zhipeng IoV’s Nominee Shareholders. At the same
time, the aforementioned contractual agreements had been modified to reflect the change of equity interests in Zhipeng IoV. Xiaopeng Technology, Zhipeng IoV, and Zhipeng IoV’s Nominee Shareholders entered into a series of contractual
agreements, including an equity interest pledge agreement, a loan agreement, exclusive service agreement, exclusive call option agreement and power of attorney that irrevocably authorized Xiaopeng Technology to exercise the equity owner’s
rights over Zhipeng IoV. On April 20, 2024, the original Nominee Shareholders of Zhipeng IoV changed to a new Nominee Shareholder, who is an employee from the Group, and the aforementioned contractual agreements had been modified to reflect the
change of nominee shareholders of Zhipeng IoV. Xiaopeng Technology, Zhipeng IoV, and Zhipeng IoV’s new Nominee Shareholder entered into a series of contractual agreements, including an equity interest pledge agreement, a loan agreement,
exclusive service agreement, exclusive call option agreement and power of attorney that irrevocably authorized Xiaopeng Technology to exercise the equity owner’s rights over Zhipeng IoV. These agreements, coupled with its 50% equity interest,
results in the Company, being the VIE’s primary beneficiary, with a controlling financial interest under ASC 810 in Zhipeng IoV, to direct the activities that most significantly impact Zhipeng IoV’s economic performance and enable the
Company to obtain substantially all of the economic benefits arising from Zhipeng IoV. Accordingly, the Company continued to consolidate the financial results of Zhipeng IoV under U.S. GAAP. As of June 30, 2025, Zhipeng IoV did not have
significant operations, nor any material assets or liabilities.
Yidian Chuxing which is primarily engaged in the business of provision of online-hailing services
through online platform was established by two shareholders of the Company (the “Yidian Chuxing‘s Nominee Shareholders”) on May 24, 2018. On May 28, 2018, Guangzhou Xiaopeng Zhihui Chuxing Technology Co., Ltd,
(“Xiaopeng Chuxing”), Yidian Chuxing, and Yidian Chuxing‘s Nominee Shareholders entered into a series of contractual agreements, including an equity interest pledge agreement, a loan agreement, exclusive service agreement,
exclusive call option agreement and power of attorney that irrevocably authorized Xiaopeng Chuxing to exercise the equity owner’s rights over Yidian Chuxing. These agreements provide the Company, as the only shareholder of Xiaopeng Chuxing,
with a controlling financial interest under ASC 810 in Yidian Chuxing to direct the activities that most significantly impact Yidian Chuxing’s economic performance and enable the Company to obtain substantially all of the economic benefits
arising from Yidian Chuxing. Management concluded that Yidian Chuxing is a variable interest entity of the Company and the Company is the ultimate primary beneficiary of Yidian Chuxing and shall consolidate the financial results of Yidian Chuxing in
the Group’s unaudited condensed consolidated financial statements under U.S. GAAP.
2 0 2 5 INTERIM REPORT 29
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Organization and Nature of Operations (continued)
Principal subsidiaries and VIEs (continued)
(continued)
On September 10, 2021, Xiaopeng Chuxing (wholly owned by the Company) acquired 50% equity interests in Yidian Chuxing from Yidian Chuxing’s Nominee Shareholders. At the
same time, the aforementioned contractual agreements have been modified to reflect the change of equity interests in Yidian Chuxing. Xiaopeng Chuxing, Yidian Chuxing, and Yidian Chuxing’s Nominee Shareholders entered into a series of
contractual agreements, including an equity interest pledge agreement, a loan agreement, exclusive service agreement, exclusive call option agreement and power of attorney that irrevocably authorized Xiaopeng Chuxing to exercise the equity
owner’s rights over Yidian Chuxing. On April 20, 2024, the original Nominee Shareholders of Yidian Chuxing changed to a new Nominee Shareholder, who is an employee from the Group, and the aforementioned contractual agreements had been
modified to reflect the change of nominee shareholders of Yidian Chuxing. Xiaopeng Chuxing, Yidian Chuxing, and Yidian Chuxing’s new Nominee Shareholder entered into a series of contractual agreements, including an equity interest pledge
agreement, a loan agreement, exclusive service agreement, exclusive call option agreement and power of attorney that irrevocably authorized Xiaopeng Chuxing to exercise the equity owner’s rights over Yidian Chuxing. These agreements, coupled
with its 50% equity interest, results in the Company, being the VIE’s primary beneficiary, with a controlling financial interest under ASC 810 in Yidian Chuxing, to direct the activities that most significantly impact Yidian Chuxing’s
economic performance and enable the Company to obtain substantially all of the economic benefits arising from Yidian Chuxing. Accordingly, the Company continued to consolidate the financial results of Yidain Chuxing under U.S. GAAP. As of
June 30, 2025, Yidian Chuxing did not have significant operations, nor any material assets or liabilities.
GIIA, primarily engaged in the business of
insurance agency services and established in 2007, was acquired by Guangzhou Xuetao Enterprise Management Co., Ltd. (“Guangzhou Xuetao”), a company jointly established by the former senior vice president of the Company and his spouse
(the “GIIA’s Nominee Shareholders”). On July 22, 2022, Xiaopeng Motors Sales (wholly owned by the Company), Guangzhou Xuetao and GIIA’s Nominee Shareholders entered into a cooperation agreement that Guangzhou Xuetao
irrevocably authorized Xiaopeng Motors Sales to exercise the 100% equity owner’s rights over GIIA. The agreement provides the Company, as the only shareholder of Xiaopeng Motors Sales, with a controlling financial interest under ASC 810 in
GIIA to direct the activities that most significantly impact GIIA’s economic performance and enable the Company to obtain substantially all of the economic benefits arising from GIIA. As a result of this contractual arrangement, management
concluded that GIIA is a VIE of the Company and the Company is the ultimate primary beneficiary of GIIA and shall consolidate the financial results of GIIA in the Group’s unaudited condensed consolidated financial statements under U.S. GAAP.
As of June 30, 2025, GIIA did not have significant operations, nor any material assets or liabilities.
30 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Organization and Nature of Operations (continued)
Principal subsidiaries and VIEs (continued)
(continued)
On January 31, 2024, this cooperation agreement was terminated and new contractual agreements that irrevocably authorized Xiaopeng Motors Sales to exercise the equity
owner’s rights over GIIA, including an equity interest pledge agreement, a loan agreement, exclusive service agreement, exclusive call option agreement and power of attorney, were entered into among GIIA, Xiaopeng Motors Sales, Guangzhou
Xuetao and a new nominee shareholder of Guangzhou Xuetao, who is the Group’s employee. These agreements provide the Company, as the only shareholder of Xiaopeng Motors Sales, with a controlling financial interest under ASC 810 in GIIA to
direct the activities that most significantly impact GIIA’s economic performance and enable the Company to obtain substantially all of the economic benefits arising from GIIA. Management concluded that GIIA is a variable interest entity of the
Company and the Company is the ultimate primary beneficiary of GIIA and shall consolidate the financial results of GIIA in the Group’s unaudited condensed consolidated financial statements under U.S. GAAP.
(d) Liquidity
The Group has been incurring losses from operations since inception. The Group
incurred net losses of RMB1,141,800 and RMB2,652,571 for the six months ended June 30, 2025 and 2024, respectively. Accumulated deficit amounted to RMB42,744,171 and RMB41,585,549 as of June 30, 2025 and December 31, 2024,
respectively. Net cash provided by operating activities was approximately RMB7,636,590 for the six months ended June 30, 2025. Net cash used in operating activities was approximately RMB7,391,612 for the six months ended June 30, 2024.
The Group’s liquidity is based on its ability to enhance its operating cash flow position, obtain capital financing from equity interest investors and borrow
funds to fund its general operations, research and development activities and capital expenditures. The Group’s ability to continue as a going concern is dependent on management’s ability to execute its business plan successfully, which
includes increasing market acceptance of the Group’s products to boost its sales volume to achieve economies of scale while applying more effective marketing strategies and cost control measures to better manage operating cash flow position
and obtaining funds from outside sources of financing to generate positive financing cash flows. With the completion of its IPO and FO on NYSE in August and December 2020, the Group received the net proceeds, after deducting the underwriting
discounts and commissions, fees and offering expenses, of RMB11,409,248 and RMB15,980,227, respectively. In July 2021, with the completion of its Global Offering on HKEX, the Group further received the net proceeds, after deducting the underwriting
discounts and commissions, of Hong Kong dollar (HK$)15,823,315.
2 0 2 5 INTERIM REPORT 31
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Organization and Nature of Operations (continued)
(d) Liquidity (continued)
In December 2023, with the completion of the strategic minority
investment by Volkswagen Group (“Volkswagen”), the Group received the net proceeds, after deducting related costs and expenses, of RMB5,019,599. As of June 30, 2025, the Group’s balance of cash and cash equivalents, restricted
cash, excluding RMB2,388 restricted as to withdrawal or use for legal disputes, short-term deposits, restricted short-term deposits, current portion of restricted long-term deposits, short-term investments, and current portion of long-term deposits
was RMB40,393,753.
Management concluded that its existing balance of cash and cash equivalents, short-term deposits, restricted short-term deposits, current
portion of restricted long-term deposits, short-term investments and current portion of long-term deposits as of June 30, 2025, provide the Group with sufficient liquidity to meet its working capital requirements and contractual (including
debt) obligations for the next twelve months following the issuance of the unaudited condensed consolidated financial statements. Accordingly, the unaudited condensed consolidated financial statements have been prepared on a going concern basis,
which contemplates the realization of assets and liquidation of liabilities during the normal course of operations.
Summary of Significant Accounting Policies
(a) Basis of presentation
The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for Interim Financial Statements. Accordingly, they do not include all of the information
and footnotes required by U.S. GAAP for complete financial statements. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted consistent with
Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments as necessary for the fair statement of the Group’s
financial position as of June 30, 2025, results of operations and cash flows for the six months ended June 30, 2025 and 2024. The consolidated balance sheets as of December 31, 2024 have been derived from the audited financial
statements at that date but does not include all the information and footnotes required by U.S. GAAP. The unaudited condensed consolidated financial statements and related disclosures have been prepared with the presumption that users of the
unaudited condensed consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding fiscal years. Accordingly, these financial statements should be read in conjunction with the audited
consolidated financial statements and related footnotes for the year ended December 31, 2024. The accounting policies applied are consistent with those of the audited consolidated financial statements for the preceding fiscal year. Results for
interim periods are not necessarily indicative of the results expected for the full fiscal year or for any future period.
32 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(b) Principles of consolidation
The unaudited condensed consolidated financial statements
include the financial statements of the Company, its subsidiaries and the VIEs for which the Company is the ultimate primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon
consolidation.
A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power: has the power to appoint or
remove the majority of the members of the board of directors (the “Board”): to cast majority of votes at the meeting of the Board or to govern the financial and operating policies of the investees under a statute or agreement among the
shareholders or equity holders.
A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the
rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company
considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right
to receive benefits from the VIEs that could potentially be significant to the VIEs.
(c) Use of estimates
The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported period in the unaudited condensed consolidated financial
statements and accompanying notes. Significant accounting estimates reflected in the Group’s unaudited condensed consolidated financial statements primarily include, but are not limited to, the determination of performance obligations and
allocation of transaction price to those performance obligations, the determination of the most likely amount of variable considerations, the determination of the estimated total costs to complete a contract, the determination of warranty cost,
lower of cost and net realizable value of inventory, losses on purchase commitments relating to inventory, assessment for impairment of long-lived assets and intangible assets, useful lives and residual values of long-lived assets and finite-lived
intangible assets, determination of the fair value of derivative liability relating to the contingent consideration in business combination, fair value of assets and liabilities acquired or assumed in business combination, fair value of assets and
liabilities acquired or assumed in asset acquisition, recoverability of receivables, valuation of deferred tax assets, determination of share-based compensation expenses, determination of the fair value of debt investments accounted for under the
fair value option model as well as subsequent adjustments for equity investments without readily determinable fair values and not accounted for by the equity method.
2 0 2 5 INTERIM REPORT 33
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(c) Use of estimates (continued)
Management bases the estimates on historical experience and
on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.
(d) Functional currency and foreign currency translation
The Company uses Renminbi
(“RMB”) as its reporting currency. The functional currencies of the Company and its subsidiaries which are incorporated in the Cayman Islands, British Virgin Islands, United States, Hong Kong and other regions is United States dollars
(“US$”) or their respective local currencies, while the functional currencies of the other subsidiaries and VIEs which are incorporated in the PRC are RMB. The determination of the respective functional currency is based on the criteria
set out by ASC 830, Foreign Currency Matters.
Transactions denominated in currencies other than in the functional currency are translated into the functional
currency using the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency using the applicable exchange rates at the balance sheet date.
Non-monetary items that are measured in terms of historical cost in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains or losses arising from foreign currency transactions are included
in the unaudited condensed consolidated statement of comprehensive loss.
The financial statements of the Group’s entities of which the functional currency is
not RMB are translated from their respective functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB at the exchange rates at the balance sheet date. Equity accounts other than earnings
generated in current period are translated into RMB at the appropriate historical rates. Income and expense items are translated into RMB using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded
in other comprehensive income or loss in the unaudited condensed consolidated statement of comprehensive loss, and the accumulated currency translation adjustments are presented as a component of accumulated other comprehensive income or loss in the
unaudited condensed consolidated statement of changes in shareholders’ equity.
34 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(e) Business combinations and goodwill
The Group accounts for business combinations under ASC
805, Business Combinations. Business combinations are recorded using the acquisition method of accounting, and the transaction consideration of an acquisition is determined based upon the aggregate fair value at the date of exchange of the assets
transferred, liabilities incurred, and equity instruments issued, including any consideration contingent upon future events as defined. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities
acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any noncontrolling interests.
The excess
of the total transaction consideration over the aggregate fair value of the acquired identifiable net assets is recorded as goodwill. If the total transaction consideration is less than the fair values of the net assets of the subsidiaries acquired,
the difference is recognized directly in the unaudited condensed consolidated statement of comprehensive loss.
Goodwill is not amortized but is tested for
impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, by performing the quantitative test through comparing each reporting unit’s fair value to its carrying value, including goodwill.
No impairment provision was made related to the Group’s goodwill for the six months ended June 30, 2025 and 2024.
Fair value
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Group considers the principal or most advantageous market in which it would
transact, and it also considers assumptions that market participants would use when pricing the asset or liability.
The Group applies a fair value hierarchy that
requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input
that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:
Level I —
Quoted prices in active markets for identical assets or liabilities.
2 0 2 5 INTERIM REPORT 35
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Fair value (continued)
Level II — Observable, market-based inputs, other than quoted
prices, in active markets for identical assets or liabilities.
Level III — Unobservable inputs to the valuation methodology that are significant to the
measurement of the fair value of the assets or liabilities.
The fair value guidance describes three main approaches to measure the fair value of assets and
liabilities:
(1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated
from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current
market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.
When available, the
Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or
independently sourced market parameters, such as interest rates and currency rates.
Financial assets and liabilities that are measured at amortized cost primarily
consist of cash and cash equivalents, restricted cash, short-term deposits, restricted short-term deposit, short-term investments, accounts and notes receivable, installment payment receivables, long-term deposits, restricted long-term deposits,
equity method investments, other assets, accounts payable, notes payable, short-term borrowings, finance lease liabilities, operating lease liabilities, accruals and other liabilities and long-term borrowings. As of June 30, 2025 and
December 31, 2024, the carrying values of these financial instruments, except for other non-current assets, non-current portion of long-term deposits, non-current portion of restricted long-term deposit, non-current portion of long-term
borrowings, and non-current portion of lease liabilities, approximated their respective fair values due to the short-term maturity of these instruments.
Financial
assets and liabilities that are measured at fair value on a recurring basis consist of short-term investments, equity investments with readily determinable fair values, debt investments that are accounted for under the fair value option model and
derivative liability.
36 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Fair value (continued)
All of the Group’s short-term investments, which are comprised
primarily of structured deposits and bank financial products, are classified within Level II of the fair value hierarchy because they are floating income products linked to currency exchange rate, gold market price or benchmark interest rates. These
instruments are not valued using quoted market prices, but can be valued based on other observable inputs, such as interest rates and currency rates.
Equity
investments with readily determinable fair values (Note 13) are valued using the quoted prices in active markets at the reporting date, which are classified within Level I of the fair value hierarchy.
The Group has debt investments that are accounted for under the fair value option model (Note 13) and a derivative liability relating to certain contingent consideration, which are
initially measured at fair value with changes in fair value in the subsequent periods recognized through earnings. Such debt investments and derivative liability are classified within Level III of the fair value hierarchy, as there is little or no
observable market data to determine the respective fair values. Under these circumstances, the Group has adopted certain valuation techniques using unobservable inputs to measure their respective fair values.
(g) Cash and cash equivalents
Cash and cash equivalents represent cash on hand, time deposits
and highly liquid investments placed with banks or other financial institutions, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less.
2 0 2 5 INTERIM REPORT 37
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(g) Cash and cash equivalents (continued)
Cash and cash equivalents as reported in the
unaudited condensed consolidated statement of cash flows are presented separately on the unaudited condensed consolidated balance sheets as follows:
As of
June 30, 2025 As of December 31, 2024
Amount RMB equivalent Amount RMB equivalent
Cash and cash equivalents:
RMB 17,583,818 17,583,818 15,838,827 15,838,827
US$ 68,063 487,239 345,447 2,483,208
EUR 58,174 488,804 17,286 130,088
Others not applicable 249,632 not applicable 134,151
Total 18,809,493 18,586,274
As of June 30, 2025 and December 31, 2024, substantially all of the Group’s cash and cash equivalents were held in reputable financial institutions located in the
PRC, Hong Kong, United States and Europe.
(h) Restricted cash
Restricted cash
primarily represents bank deposits for letters of guarantee, bank notes and others amounted to RMB4,528,686 and RMB3,148,492 as of June 30, 2025 and December 31, 2024, respectively. In addition, restricted cash includes certain deposits,
amounting to RMB2,388 and RMB4,898 as of June 30, 2025 and December 31, 2024, respectively, that are restricted due to legal disputes.
Short-term and
long-term deposits
Short-term deposits represent time deposits placed with banks with original maturities between three months and one year. Interest earned is
recorded as interest income in the unaudited condensed consolidated statement of comprehensive loss during the periods presented. As of June 30, 2025 and December 31, 2024, substantially all of the Group’s short-term deposits
amounting to RMB13,405,550 and RMB12,931,757, respectively, had been placed in reputable financial institutions in the PRC.
38 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Short-term and long-term deposits (continued)
Long-term deposits represent time deposits
placed with banks with original maturities more than one year. Interest earned is recorded as interest income in the unaudited condensed consolidated statement of comprehensive loss during the periods presented. As of June 30, 2025 and
December 31, 2024, substantially all of the Group’s long-term deposits amounting to RMB7,134,636 and RMB4,941,362, respectively, had been placed in reputable financial institutions in the PRC, out of which, RMB1,079,259 and RMB452,326
will be due within one year and are classified to “Long-term deposits, current portion”, respectively.
Current expected credit losses
The Group’s cash and cash equivalents, restricted cash, time deposits in bank, accounts and notes receivable, amounts due from related parties, other current assets,
installment payment receivables, and other non-current assets are within the scope of ASC Topic 326. The Group has identified the relevant risk characteristics of its customers and the related receivables, deposits, installment payment receivables
and others aforementioned, which include size, types of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group
considers the historical credit loss experience, current economic conditions and supportable forecasts of future economic conditions in assessing the lifetime expected credit losses. Additionally, external data and macroeconomic factors are also
considered. This is assessed at each quarter end based on the Group’s specific facts and circumstances. For the six months ended June 30, 2025 and 2024 the Group recorded RMB33,169 and RMB39,049 in expected credit loss expense in selling,
general and administrative expenses, respectively. As of June 30, 2025, the expected credit loss provision recorded in current and non-current assets were RMB81,463 and RMB56,902, respectively. As of December 31, 2024, the expected credit
loss provision recorded in current and non-current assets were RMB63,866 and RMB55,932, respectively.
Installment payment receivables primarily consist of the
aggregate receivables of the installment payments for vehicles or batteries due from customers. The Group classified its installment payment receivables into different categories from performing to non-performing based on the credit risk of the
customers and the past due days, if any, of the principal and/or interest repayments. The lifetime current expected credit losses for the installment payment receivables was determined by applying probability of default and loss given default
assumptions to exposures at default, then discounted these cash flows to present value using the original effective interest rate or by an approximation thereof. As of June 30, 2025 and December 31, 2024, the majority of the installment
payment receivables had been categorized as performing since the customers had a low risk of default, a strong capacity to meet contractual cash flows and had no past due repayments and the amounts of installment payment receivables of
non-performing categories were immaterial.
2 0 2 5 INTERIM REPORT 39
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Current expected credit losses (continued)
The Group considers historical credit loss rates
for each category of receivables, other current assets and other non-current assets and also considers forward looking macroeconomic data in making its loss accrual determinations. The Group has made specific credit loss provisions on a case-by-case
basis for particular aged receivable balances.
The Group’s expected credit loss of cash and cash equivalents, restricted cash, time deposits in bank, amounts
due from related parties and notes receivable within the scope of ASC Topic 326 were immaterial.
The following table summarizes the activity in the allowance for
credit losses related to accounts receivable, other current assets, installment payment receivables and other non-current assets for the six months ended June 30, 2025 and 2024:
For the Six Months Ended
June 30, 2025
RMB
Balance as of December 31, 2024 119,798
Current period provision 33,169
Transfer-out due to derecognition of financial
assets(6,407)
Write-offs(8,195)
Balance as of June 30, 2025
138,365
For the Six Months Ended
June 30, 2024
RMB
Balance as of December 31, 2023 150,783
Current period provision 39,049
Write-offs(17,468)
Balance as of June 30, 2024 172,364
40 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(k) Short-term investments
For investments in financial instruments with a variable interest
rate indexed to the performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected as “Interest
income” in the unaudited condensed consolidated statement of comprehensive loss. The Group’s short-term investments in financial instruments were RMB1,655,299 and RMB751,290 as of June 30, 2025 and December 31, 2024,
respectively.
Property, plant and equipment, net
Property, plant and
equipment are stated at cost less accumulated depreciation and impairment loss, if any. Property, plant and equipment are depreciated primarily using the straight-line method over the estimated useful lives of the assets. Residual value rate is
determined to 0%-50% based on the economic value of the property, plant and equipment at the end of the estimated useful lives as a percentage of the original cost.
Estimated useful lives
Buildings 10 to 20 years
Machinery and equipment 2 to 10 years
Charging infrastructure 3 to 5 years
Vehicles 1.5 to 5 years
Computer and electronic equipment 2 to 10 years
Leasehold improvements Shorter of the lease
terms or the estimated
useful lives
Others 2 to 5 years
Depreciation for molds and toolings is computed using the units-of-production method whereby capitalized costs are amortized over the total estimated productive units of the
related assets.
The cost of maintenance and repairs is expensed as incurred, whereas the cost of renewals and betterment that extends the useful lives of property,
plant and equipment is capitalized as additions to the related assets.
2 0 2 5 INTERIM REPORT 41
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Property, plant and equipment, net (continued)
Construction in progress represents property,
plant and equipment under construction and pending installation and is stated at cost less accumulated impairment losses, if any. Completed assets are transferred to their respective asset classes and depreciation begins when an asset is ready for
its intended use. Interest expense on outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest expense on construction-in-progress is included within property, plant and equipment and is
amortized over the life of the related assets.
The gain or loss on the disposal of property, plant and equipment is the difference between the net sales proceeds
and the carrying amount of the relevant assets and is recognized in the unaudited condensed consolidated statement of comprehensive loss. Losses on the disposal of property, plant and equipment amounting to RMB9,511 and RMB8,617 were recognized in
operating expenses for the six months ended June 30, 2025 and 2024, respectively.
(m) Intangible assets, net
Intangible assets consist of manufacturing license, surveying and mapping qualification, insurance agency qualification, license plate, software, license of maintenance and
overhauls, vehicle model technology (“VMT”), vehicle platform technology (“VPT”), robotics platform technology and other intangible assets. Intangible assets with finite lives, including software, license of maintenance and
overhaul, VPT, VMT, robotics platform technology and other intangible assets, are carried at acquisition cost less accumulated amortization and impairment, if any. Finite-lived intangible assets are tested for impairment if impairment indicators
arise. Amortization of intangible assets with finite lives are computed using the straight-line method over the estimated useful lives as below:
Estimated useful
lives
Software 2 to 10 years
License of maintenance and overhauls 26 months
VPT 10 years
VMT 5 years
Robotics platform technology 10 years
Others 5 to 10 years
42 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(m) Intangible assets, net (continued)
The Group estimates the useful life of the software to
be 2 to 10 years, VMT to be 5 years, VPT and robotics platform technology to be 10 years, based on the contract terms, expected technical obsolescence and innovations, and industry experience of such intangible assets. The Group estimates the useful
life of the license of maintenance and overhaul to be 26 months based on the contract terms. The Group estimates the useful life of other intangible assets to be 5 to 10 years, based on the laws and regulations by registration authorities.
The estimated useful lives of intangible assets with finite lives are reassessed if circumstances occur that indicate the original estimated useful lives may have
changed.
Intangible assets that have indefinite useful lives are manufacturing license, surveying and mapping qualification, insurance agency qualification and
license plates, as of June 30, 2025. No useful life was determined the contract terms when the Group acquired the manufacturing license, surveying and mapping qualification, insurance agency qualification and license plates. The Group expects
that such intangible assets are unlikely to be terminated and will continue to be renewed as a matter of course based on industry experience, and will continue to contribute revenue in the future. Therefore, the Group considers the useful life of
such intangible assets to be indefinite. In August, 2024, the Group completed the associated research and development efforts and a determination related to commercial feasibility of the vehicle model technology under development
(“VMTUD”) acquired through business combination and estimated the useful life of VMTUD. The VMTUD was transferred into VMT as finite-lived intangible assets aforementioned.
The Group evaluates indefinite-lived intangible assets annually as of each balance sheet date to determine whether events and circumstances continue to support indefinite useful
lives. The value of indefinite-lived intangible assets is not amortized, but tested for impairment annually or whenever events or changes in circumstances indicate that it is more likely than not that the asset is impaired in accordance with ASC
350. The Group first performs a qualitative assessment to assess all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. If after performing the
qualitative assessment, the Group determines that it is more likely than not that the indefinite-lived intangible asset is impaired, the Group calculates the fair value of the intangible asset and performs the quantitative impairment test by
comparing the fair value of the asset with its carrying amount. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, the Group recognizes an impairment loss in an amount equal to that excess. In consideration of the
growing electronic vehicle industry in China, the Group’s improving sales performance, the stable macroeconomic conditions in China and the Group’s future manufacturing plans, the Group determined that it is not likely that the
manufacturing license, surveying and mapping qualification certificate, insurance agency qualification certificate and license plates were impaired as of June 30, 2025 and December 31, 2024, respectively. As such, no impairment of
indefinite-lived intangible assets was recognized for the six months ended June 30, 2025 and 2024.
2 0 2 5 INTERIM REPORT 43
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(n) Land use rights, net
Land use rights are recorded at cost less accumulated amortization.
Amortization is provided on a straight-line basis over the estimated useful lives which are 40 to 50 years that represent the terms of land use rights certificate.
(o) Long-term investments
Equity Method Investments
The Group applies the equity method to account for its equity investments, according to ASC 323 “Investments — Equity Method and Joint Ventures”, over which it
has significant influence but does not own a controlling financial interest.
Under the equity method, the Group initially records its investments at fair value.
The Group subsequently adjusts the carrying amount of the investments to recognize the Group’s proportionate share of each equity investee’s net income or loss into earnings after the date of investment.
The Group continually reviews its investments in equity method investees to determine whether a decline in fair value below the carrying value is other-than-temporary. The primary
factors the Group considers in its determination include current economic and market conditions, the financial condition and operating performance of the equity method investees, and other company specific information.
The Group’s long-term investments also include other equity investments, over which the Group has neither significant influence nor control, and debt investments.
Equity Investments with Readily Determinable Fair Values
Equity investments with readily
determinable fair values are measured and recorded at fair value using the quoted prices in active markets at the reporting date, which are classified within Level I of the fair value hierarchy.
44 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Long-term investments (continued)
Equity Investments without Readily Determinable Fair Values
The Group elected to record equity investments without readily determinable fair values using the measurement alternative at cost, less impairment, adjusted for
subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investments are required to be made whenever there are
observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or
that can reasonably be known.
Debt Investments
The Group elected to account
for certain debt investments under the fair value option model including retained asset-backed notes, convertible bonds and preferred stock redeemable merely by the passage of time and at the option of the Group as a holder. The fair value option
model permits the irrevocable election on an instrument-by-instrument basis at initial recognition or upon an event that gives rise to a new basis of accounting for that instrument. The investments accounted for under the fair value option model are
carried at fair value with unrealized gains and losses recorded in the unaudited condensed consolidated statement of comprehensive loss. Interest income from debt investments is recognized in earnings using the effective interest method which is
reviewed and adjusted periodically based on changes in estimated cash flows.
(p) Impairment of long-lived assets
Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will affect the future
use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment by comparing the carrying value
of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the
assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. Fair value is determined using anticipated cash flows discounted at a rate commensurate with the risk
involved.
2 0 2 5 INTERIM REPORT 45
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(q) Warranties
The Group provides a manufacturer’s standard warranty on all vehicles
sold. The Group accrues for a warranty reserve for the vehicles sold by the Group, which includes the Group’s best estimate of the future costs to be incurred in order to repair or replace items under warranties and recalls when identified.
These estimates were made based on actual claims incurred to date and an estimate of the nature, frequency and magnitude of future claims with reference made to the past claim history. These estimates are inherently uncertain given the Group’s
relatively short history of sales, and changes to the Group’s historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the
next 12 months is included within accruals and other liabilities, while the remaining balance is included within other non-current liabilities on the unaudited condensed consolidated balance sheets. Warranty expense is recorded as a component of
cost of sales in the unaudited condensed consolidated statement of comprehensive loss.
The Group does not consider standard warranty as being a separate
performance obligation as it is intended to provide greater quality assurance to customers and is not viewed as a distinct obligation. Accordingly, standard warranty is accounted for in accordance with ASC 460, Guarantees. The Group also provides
extended lifetime warranty for certain vehicles. The extended lifetime warranty is an incremental service offered to customers and is considered a separate performance obligation distinct from other promises and is accounted for in accordance with
ASC 606.
(r) Revenue recognition
Revenue is recognized when or as the control
of the goods or services is transferred upon delivery to customers. Depending on the terms of the contract and the laws that apply to the contract, control of the goods and services may be transferred over time or at a point in time. Control of the
goods and services is transferred over time if the Group’s performance:
provides all of the benefits received and consumed simultaneously by the customer;
creates and enhances an asset that the customer controls as the Group performs; or
does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.
If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that
performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services.
46 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(r) Revenue recognition (continued)
Contracts with customers may include multiple performance
obligations. For such arrangements, the Group allocates overall contract price to each distinct performance obligation based on its relative standalone selling price in accordance with ASC 606. The Group generally determines standalone selling
prices for each individual distinct performance obligation identified based on the prices charged to customers. If the standalone selling price is not directly observable, it is estimated using expected cost plus a margin or adjusted market
assessment approach, depending on the availability of observable information, the data utilized, and considering the Group’s pricing policies and practices in making pricing decisions. Assumptions and estimations have been made in estimating
the relative selling price of each distinct performance obligation, and changes in judgments on these assumptions and estimates may affect the revenue recognition. The discount provided in the contract are allocated by the Group to all performance
obligations as conditions under ASC 606-10-32-37 to allocate the discount to one or more, but not all, of the performance obligations are not met.
When either
party to a contract has performed, the Group presents the contract in the unaudited condensed consolidated balance sheets as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the
customer’s payment.
A contract asset is the Group’s right to consideration in exchange for goods and services that the Group has transferred to a
customer. A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due.
If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the
Group presents the contract liability when the payment is made or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received
consideration (or an amount of consideration is due) from the customer. The Group’s contract liabilities primarily result from the multiple performance obligations identified in the vehicle sales contract, which are recorded as deferred
revenue and recognized as revenue based on the consumption of the services or the delivery of the goods.
2 0 2 5 INTERIM REPORT 47
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Revenue recognition (continued)
Vehicle sales
The Group generates revenue from sales of electric vehicles, together with a number of embedded products and services through a contract. There are multiple distinct performance
obligations explicitly stated in a sales contract including sales of vehicle, free battery charging within 3 to 6 years, extended lifetime warranty, option between household charging pile and charging card, vehicle internet connection services,
services of lifetime free battery charging in XPeng-branded supercharging stations and lifetime warranty of battery, which are defined by the Group’s sales policy and accounted for in accordance with ASC 606. The standard warranty provided by
the Group is accounted for in accordance with ASC 460, Guarantees, and the estimated costs are recorded as a liability when the Group transfers the control of vehicle to a customer.
In the instance that some eligible customers select to pay by installments for vehicles or batteries under an auto financing program provided to the customers by the Group, such
arrangement contains a significant financing component and as a result, the transaction price is adjusted to reflect the impact of time value of the transaction price using an applicable discount rate (i.e. the interest rates of the loan reflecting
the credit risk of the borrower). The Group allocates the financing amount to all performance obligations proportionately based on their relative selling prices, as conditions prescribed under ASC 606-10-32-37 are not met.
Receivables related to the vehicle and battery installment payments are recognized as installment payment receivables. The difference between the gross receivable and the
respective present value is recorded as unrealized finance income. Interest income resulting from arrangements with a significant financing component is presented as services and others.
The overall contract price of electric vehicle and related products/services is allocated to each distinct performance obligation based on the relative estimated standalone selling
price. The revenue for sales of the vehicle and household charging pile is recognized at a point in time, when the control of the vehicle is transferred to the customer and the charging pile is installed at customer’s designated location.
For vehicle internet connection service, the Group recognizes the revenue using a straight-line method. For the extended lifetime warranty and lifetime battery
warranty, the Group recognizes revenue over time based on a cost-to-cost method. For the free battery charging within 3 to 6 years and charging card to be consumed to exchange for charging services, the Group considers that a measure of progress
based on usage best reflects the performance, as it is typically a promise to deliver the underlying service rather than a promise to stand ready. For the services of lifetime free battery charging in XPeng-branded supercharging stations, the Group
recognizes the revenue over time based on a straight-line method during the expected useful life of the vehicle.
48 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Revenue recognition (continued)
Vehicle sales (continued)
Initial refundable deposits for intention orders and non-refundable deposits for vehicle reservations received from customers prior to vehicle purchase agreements are signed are
recognized as refundable deposits from customers (accruals and other liabilities) and advances from customers (accruals and other liabilities). When vehicle purchase agreements are signed, if the consideration for the vehicle and all embedded
services must be paid in advance, which means the payments received are prior to the transfer of goods or services by the Group, the Group records a contract liability (deferred revenue) for the allocated amount relating to those unperformed
obligations. At the same time, advances from customers are classified as a contract liability (deferred revenue) as part of the consideration.
Services and others
Other services included services embedded in a sales contract, supercharging service, maintenance service, technical support services, technical research and
development services and second-hand vehicle sales service. These services are recognized either over time or point in time, as appropriate, under ASC 606.
The
Group licenses a car manufacturer with right to use its in-house developed platform and technology, and provides technical research and development services to integrate the Group’s technology into the car manufacturer’s vehicles and
platforms.
Before the start of production of the car manufacturer’s vehicles (“SOP”), the Group provides technical research and development
(“R&D”) services, provides license of its owned intellectual property, or transfers its know-how pack to the car manufacturer. The Group concludes that the licensing and know-how pack transfers are bundled with technical R&D
services as one single performance obligation, since the customer cannot benefit from the licenses and know-how pack either on its own or together with other resources that are readily available to itself.
The licensing involved in the post-SOP phase primarily represents the right to enable the car manufacturer’s vehicles produced and sold with the technology and software
developed based on the Group’s owned intellectual property. Other promises identified in the post-SOP phase are immaterial in the context of the contract. For those contracts with sales-based royalties, the sales-based royalty revenue is
recognized when the car manufacturer’s subsequent sales occur.
2 0 2 5 INTERIM REPORT 49
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Revenue recognition (continued)
Services and others (continued)
For contracts pursuant to which the Group creates an asset with no alternate use to the Group and has an enforceable right to payment from the car manufacturer for performance
completed to date, licenses and technical R&D services revenue is recognized over a period of the contract based on the progress towards completion of the performance obligation using input method, which is measured by reference to the contract
costs incurred for the work performed up to the end of the reporting period as a percentage of the total estimated costs to complete the contract. Contract costs contains labor cost, material cost and other direct costs.
Fees entitled by the Group upon or post SOP of the car manufacturer’s vehicles are considered as variable consideration as there are binary outcomes regarding the fee
entitlement. The Group estimates the amount of variable consideration using the most likely amount method and includes the estimated amount in the transaction price to the extent that it is probable that a significant reversal in the amount of
cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. No amount of variable consideration is included in the transaction price in the current reporting period after
considering the facts and uncertainties as of the period end. The Group will update its estimate at each reporting date until the uncertainty is resolved.
Practical expedients and exemptions
The Group follows the guidance on
immaterial promises when identifying performance obligations in the vehicle sales contracts and concludes that lifetime roadside assistance, traffic ticket inquiry service, courtesy car service, on-site troubleshooting, parts replacement service,
basic maintenance service of 6 times in 4 years and others, are not performance obligations considering these services are value-added services to enhance customer experience rather than critical items for vehicle driving and forecasted that usage
of these services will be very limited. The Group also performs an estimation on the standalone fair value of each promise applying a cost plus margin approach and concludes that the standalone fair value of foresaid services are insignificant
individually and in aggregate, representing less than 1% of vehicle gross selling price and aggregate fair value of each individual promise.
Considering the
qualitative assessment and the result of the quantitative estimate, the Group concluded not to assess whether promises are performance obligation if they are immaterial in the context of the contract and the relative standalone fair value
individually and in aggregate is less than 1% of the contract price, namely the lifetime roadside assistance, traffic ticket inquiry service, courtesy car service, on-site troubleshooting and parts replacement service and others. Related costs are
then accrued instead.
50 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Revenue recognition (continued)
Customer Upgrade Program
In the third quarter of 2019, due to the upgrade of the G3 vehicle from the 2019 version (“G3 2019”) to its 2020 version (“G3 2020”), the Group voluntarily
offered all owners of G3 2019 the options to either receive loyalty points, valid for 5 years from the grant date, which can be redeemed for goods or services, or obtain an enhanced trade-in right contingent on a future purchase starting from the
34th month of the original purchase date but only if they purchase a new vehicle from the Group. The owners of G3 2019 had to choose one out of the two options within 30 days after receiving the notice. Anyone who did not make the choice before the
date was deemed to forgo the rights to the options. At the time the offers were made, the Group still had unfulfilled performance obligations for services to the owners of G3 2019 associated with their original purchase. The Group considered this
offering is to improve the satisfaction of the owners of G3 2019 but not the result of any defects or resolving past claims regarding the G3 2019.
As both options
provide a material right (a significant discount on future goods or services) for no consideration to existing customers with unfulfilled performance obligations, the Group considers this arrangement to be a modification of the existing contracts
with customers. Further, as the customers did not pay for these additional rights, the contract modification is accounted for as a termination of the original contract and commencement of a new contract, which will be accounted for prospectively.
The material right from the loyalty points or the trade-in right shall be considered in the reallocation of the remaining consideration from the original contracts among the promised goods or services not yet transferred at the time of the contract
modification. This reallocation is based on the relative standalone selling prices of these goods and services.
For the material right attached with loyalty
points, the Group estimated the probability of points redemption when determining the standalone selling price. Due to the fact that most merchandises can be redeemed without requiring a significant amount of points, as compared with the amount of
points granted to the customers, the Group believes it is reasonable to assume all points will be redeemed and no forfeiture is estimated. The amount allocated to the points as a separate performance obligation is recorded as a contract liability
(deferred revenue) and revenue will be recognized when future goods or services are transferred. As of June 30, 2025, all deferred revenue related to the loyalty points were recognised.
The trade-in program has been closed in 2022. The owners of G3 2019, who elected the trade-in right, did not sign the trade-in contracts or reach an additional agreement with the
Group in 2022, the trade-in right were expired.
2 0 2 5 INTERIM REPORT 51
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Cost of sales
Vehicle
Cost of vehicle revenue includes direct parts, materials, labor costs and manufacturing overheads (including depreciation and amortization of assets associated with the production)
and reserves for estimated warranty expenses. Cost of vehicle revenue also includes charges to write-down the carrying value of the inventories when it exceeds its estimated net realizable value and to provide for on-hand inventories that are either
obsolete or in excess of forecasted demand, losses on purchase commitments relating to inventory, and impairment charge of property, plant and equipment.
Services
and others
Cost of services and others revenue generally includes cost of direct parts, materials, labor costs, installment costs, costs associated with providing
non-warranty after-sales services and depreciation of associated assets used for providing the services.
Research and development expenses
All costs associated with research and development (“R&D”) are expensed as incurred. R&D expenses consist primarily of employee compensation for those employees
engaged in R&D activities, design and development expenses with new technology, materials and supplies and other R&D related expenses. For the six months ended June 30, 2025 and 2024, R&D expenses were RMB4,186,868 and RMB2,817,200,
respectively.
(u) Selling, general and administrative expenses
Sales and
marketing expenses consist primarily of employee compensation and marketing, promotional and advertising expenses. Advertising expenses consist primarily of costs for the promotion of corporate image and product marketing. For the six months ended
June 30, 2025 and 2024, advertising costs were RMB309,032 and RMB302,064, respectively, and total sales and marketing expenses were RMB3,236,990 and RMB2,332,547, respectively.
General and administrative expenses consist primarily of employee compensation for employees involved in general corporate functions and those not specifically dedicated to R&D
activities, depreciation and amortization expenses, legal, and other professional services fees, lease and other general corporate related expenses. For the six months ended June 30, 2025 and 2024, general and administrative expenses were
RMB876,315 and RMB629,501, respectively.
52 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
Government grants
The Group receives government grant subsidies from certain local government,
which consist of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has provided for a specific purpose, such as research and development purpose, interest discount, purchase or construction of
property, plant and equipment and intangible assets. Other subsidies are the subsidies that the local government has not specified its purpose and are not tie to the future trends or performance of the Group.
Specific subsidies are recorded when all conditions attached to the subsidies have been met or are expected to be met and there is reasonable assurance of their receipt, in
accordance with their purpose as a reduction of expense, or an offset to the related capital asset.
Other subsidies are recognized immediately as other income upon
receipt.
(w) Other income, net
For the six months ended June 30, 2025
and 2024, other income, net mainly represents government grants that are recognized upon receipt recognized in profit or loss of RMB781,442 and RMB352,883, as further performance by the Group is not required.
(x) Share-based compensation
The Group grants restricted share units (“RSUs”),
restricted shares and share options (collectively, “Share-based Awards”) to eligible employees and accounts for share-based compensation in accordance with ASC 718, Compensation — Stock Compensation. Share-based Awards are measured
at the grant date fair value of the awards and recognized as expenses using the graded vesting method or straight-line method, net of estimated forfeitures, if any, over the requisite service period. For awards with performance conditions, the
Company would recognize compensation cost if and when it concludes that it is probable that the performance condition will be achieved. For awards with market conditions, the Company would recognize for each tranche of market conditions over the
expected achievement period of the market condition.
The fair value of the RSUs granted prior to the completion of the IPO was assessed using the income approach/
discounted cash flow method, with a discount for lack of marketability given that the shares underlying the awards were not publicly traded at the time of grant. This assessment requires complex and subjective judgments regarding the Company’s
projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made.
2 0 2 5 INTERIM REPORT 53
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(x) Share-based compensation (continued)
The fair value of the RSUs granted subsequent to the
completion of the IPO is estimated based on the fair market value of the underlying ordinary shares of the Company on the date of grant.
The fair value of the RSUs
granted with market conditions is estimated on the grant date using Monte Carlo simulations.
The assumptions used in share-based compensation expense recognition
represent management’s best estimates, but these estimates involve inherent uncertainties and application of management judgment. If factors change or different assumptions are used, the share-based compensation expenses could be materially
different for any period. Moreover, the estimates of fair value of the awards are not intended to predict actual future events or the value that ultimately will be realized by grantees who receive Share-based Awards, and subsequent events are not
indicative of the reasonableness of the original estimates of fair value made by the Group for accounting purposes.
(y) Dividends
Dividends are recognized when declared. No dividend was declared for the six months ended June 30, 2025 and 2024, respectively.
(z) Earnings (losses) per share
Basic earnings (losses) per share is computed by dividing net
income (loss) attributable to holders of ordinary shares, by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between ordinary shares and
other participating securities based on their participating rights. Diluted earnings (losses) per share is calculated by dividing net income (loss) attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent
shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of unvested RSUs and contingently issuable shares relating to the contingent
consideration. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive.
54 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Summary of Significant Accounting Policies (continued)
(aa) Segment reporting
ASC 280, Segment Reporting, establishes standards for companies to
report in their financial statements information about operating segments, products, services, geographic areas, and major customers.
Based on the criteria
established by ASC 280, the Group’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer, who reviews unaudited consolidated revenue and gross profit when making decisions about allocating
resources and assessing performance of the Group. As a whole and hence, the Group has only one reportable segment. The Group does not distinguish between markets or segments for internal reporting. As the Group’s long-lived assets are
substantially located in the PRC and the revenue is mainly generated in the PRC, no segment geographical information is presented.
For the operating results of
segment provided to and reviewed by CODM, please refer to the unaudited condensed consolidated statements of comprehensive loss.
2 0 2 5 INTERIM REPORT 55
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Recent Accounting Pronouncements
Recently issued accounting pronouncements not yet adopted
In December 2023, the FASB issued
ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU
is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the
required additional disclosures being included in the Group’s consolidated financial statements, once adopted. The Group are currently evaluating the provisions of this ASU and expect to adopt them for the year ending December 31, 2025.
In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated
disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses
along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied
prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted.
This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. The Group is currently evaluating the provisions of this ASU.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments — Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets, which
provides all entities with practical expedient of developing reasonable and supportable forecasts as part of estimating expected credit losses, that assumes that current conditions as of the balance sheet date do not change for the remaining life of
the asset. This ASU is effective for annual reporting periods beginning after December 15, 2025 (and interim reporting periods within those annual reporting periods). Early adoption is permitted in both interim and annual reporting periods in
which financial statements have not yet been issued or made available for issuance. The Group is currently evaluating the impact of this pronouncement on its consolidated financial statements.
56 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Concentration and Risks
(a) Concentration of credit risk
Assets that potentially subject the Group to significant
concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term deposits, restricted short-term deposits, short-term investments, long-term deposits and restricted long-term deposits. The maximum exposure of
such assets to credit risk is their carrying amounts as of the balance sheet dates. As of June 30, 2025 and December 31, 2024, substantially all of the Group’s cash and cash equivalents, restricted cash, short-term deposits,
short-term investments, restricted short-term deposits, long-term deposits and restricted long-term deposits were placed with certain reputable financial institutions in the PRC and overseas. Management chooses these institutions because of their
reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutions’ reputations, track records, and reported reserves. Management expects that any additional institutions
that the Group uses for its cash and bank deposits would be chosen with similar criteria for soundness. Bank failure is uncommon in the PRC and the Group believes that those Chinese banks that hold the Group’s cash and cash equivalents,
restricted cash, short-term deposits, short-term investments, restricted short-term deposits, long-term deposits and restricted long-term deposits are financially sound based on publicly available information.
(b) Foreign currency exchange rate risk
The revenues and expenses of the Group’s
entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The Group’s overseas financing activities are denominated in U.S. dollars. The RMB is not freely convertible into foreign currencies.
Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities. The State Administration for Foreign
Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies.
2 0 2 5 INTERIM REPORT 57
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Fair Value of Financial Instruments
ASC 820, Fair Value Measurements, states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tiered fair value
hierarchy, which prioritizes which inputs should be used in measuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputs other than quoted prices in active markets that are observable
either directly or indirectly and (Level III) unobservable inputs for which there is little or no market data. The fair value hierarchy requires the use of observable market data when available in determining fair value.
Fair value measurements on a recurring basis
Assets and liability that were measured at fair
value on a recurring basis were as follows:
As of June 30, 2025 As of December 31, 2024
Fair Value Level I Level II Level III Fair Value Level I Level II Level III
Assets
Short-term
investments(i)
(Note 2(k)) 1,655,299 — 1,655,299 — 751,290 — 751,290 —
Debt
investments(ii)
(Note 13) 1,151,979 — — 1,151,979 1,034,204 — — 1,034,204
Equity investments
with readily
determinable
fair values(iii)
(Note 13) 99,607 99,607 — — 78,351 78,351 — —
2,906,885 99,607
1,655,299 1,151,979 1,863,845 78,351 751,290 1,034,204
Liability
Derivative
liability
relating to
the contingent
consideration(iv) 251,085 — — 251,085 167,940 — — 167,940
58 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Fair Value of Financial Instruments (continued)
Fair value measurements on a recurring basis (continued)
Short-term investments are
investments in financial instruments with variable interest rates and maturity dates within one year. Fair value of short-term investments is estimated based on the quoted prices of similar financial products provided by banks at the end of each
period (Level II).
Debt investments do not have readily determinable market values and are categorized as Level III in the fair value hierarchy. The Group uses a
combination of valuation methodologies, including the equity allocation model, market and income approaches based on the Group’s best estimate, which are determined by using information including but not limited to the pricing of recent rounds
of financing of the investees, future cash flow forecasts, liquidity factors and multiples of comparable companies. Regarding the reconciliation of the opening balances to the closing balances, with the changes during the period disclosed
separately, please refer to Note 13 for details.
Equity investments with readily determinable fair values are valued using the quoted prices in active markets at
the reporting date, which are classified within Level I of the fair value hierarchy.
Derivative liability relating to the contingent consideration is valued based
on (i) the quoted prices in active markets at the reporting date and (ii) an estimation on potential issuance of the Company’s ordinary shares relating to the contingent consideration from business combination. The Group classifies
the valuation techniques that use these inputs as Level III of fair value measurements.
Fair value measurements on a non-recurring basis
The Group measures investments without readily determinable fair value (Note 13(i)) on a non-recurring basis when fair value changes can be determined based upon observable and
relevant market information. Related adjustments (impairment related) are recorded as appropriate based upon such observable information. An observable price change is usually resulting from new rounds of financing of the investees. The Group
determines whether the securities offered in new rounds of financing are similar to the equity securities held by the Group by comparing the rights and obligations of the securities. When the securities offered in new rounds of financing are
determined to be similar to the securities held by the Group, it adjusts the observable price of the similar security to determine the amount that should be recorded as an adjustment in the carrying value of the security to reflect the current fair
value of the security held by the Group by using the backsolve method based on the equity allocation model with adoption of some key parameters such as risk-free rate, equity volatility, probability of each scenario and dividend yield, which are
significant unobservable inputs (Level III).
2 0 2 5 INTERIM REPORT 59
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Accounts and Notes Receivable, Net
As of As of
June 30, December 31,
2025 2024
Accounts receivable, net 872,888 1,803,035
Notes receivable 891,504 646,594
Total 1,764,392 2,449,629
Accounts receivable consisted of the following:
As of As of
June 30, December 31,
2025 2024
Accounts receivable, gross 906,035 1,823,819
Allowance for doubtful accounts(33,147)(20,784)
Accounts receivable, net 872,888 1,803,035
The accounts receivable mainly
included the amounts of vehicle sales in relation to government subsidies to be collected from government on behalf of customers and large-volume buyers for vehicle sales in the ordinary course. Sales to individual customers were normally made with
advances from customers. Sales to large-volume buyers were made on credit terms ranging from 30 to 60 days.
An aging analysis of accounts receivable based on the
relevant recognition dates is as follows:
As of As of
June 30, December 31,
2025 2024
0–3 months 429,888 587,516
3–6 months 124,456 125,601
6–12 months 32,026 42,922
Over 1 year 319,665 1,067,780
Accounts receivable, gross 906,035 1,823,819
60 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Accounts and Notes Receivable, Net (continued)
The notes receivable mainly included the amounts of vehicle sales in relation to large-volume buyers for vehicle sales in the ordinary course. Sales to large-volume buyers were
made on credit terms ranging from 30 to 150 days.
An aging analysis of notes receivable based on the relevant issuance dates is as follows:
As of As of
June 30, December 31,
2025 2024
0–3 months 419,073 300,227
3–6 months 472,431 346,367
Notes receivable 891,504 646,594
7. Inventory
Inventory consisted of the following:
As of As of
June 30, December 31,
2025 2024
Finished goods 4,371,480 3,898,396
Raw materials 2,134,412 1,634,792
Work-in-process 97,060 29,734
Total 6,602,952 5,562,922
Finished goods primarily consist of vehicles ready for transit at
production factory, vehicles in transit to fulfill customer orders, new vehicles available for immediate sale at its delivery and service centers and charging piles.
Raw materials primarily consist of materials for volume production as well as spare parts used for aftersales services.
Work-in-process primarily consist of vehicles in production which will be transferred into production cost when incurred.
2 0 2 5 INTERIM REPORT 61
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Inventory (continued)
For the six months ended June 30, 2025 and 2024, write-downs of inventories to net realizable value, recognized in cost of sales, amounted to RMB298,123 (out of which
RMB66,481 was for the excess of dedicated raw materials as a result of upgrades of existing models) and RMB710,136 (out of which RMB35,000 was for the excess of dedicated raw materials as a result of the cessation of production of the P5),
respectively. For the impact of accelerated depreciation and loss on purchase commitments due to the cessation of production and upgrades of certain vehicle models, please refer to Note 9(iii) and Note 17, respectively.
8. Prepayments and Other Current Assets
Prepayments and other current assets consisted of the
following:
As of As of
June 30, December 31,
2025 2024
Deductible input value-added tax 2,182,376 2,221,048
Prepayments(i) 368,895 383,826
Deposits(ii) 92,462 101,590
Receivables from third party online payment service providers 51,682 50,384
Finance lease
receivables, current portion, net 11,536 11,388
Others 575,675 367,076
Total
3,282,626 3,135,312
Prepayments primarily consist of prepayments for raw materials, marketing and consulting services provided by suppliers.
Deposits primarily consist of deposits for short-term leases and the deposits to suppliers for guarantee of procurement.
62 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
9. Property, Plant and Equipment, Net
Property, plant and equipment, net, consisted of the following:
As of As of
June 30, December 31,
2025 2024
Machinery and equipment 5,805,115 4,826,529
Buildings(ii) 4,223,176 4,207,967
Molds and toolings 3,321,879 3,012,412
Construction in process(i) 1,455,782 1,688,556
Leasehold improvements 666,793 649,574
Vehicles 536,718 615,905
Charging infrastructure 509,569 474,995
Computer and electronic equipment 471,551 425,386
Others 279,399 259,034
Sub-total 17,269,982 16,160,358
Less: Accumulated depreciation(iii)(5,203,124)(4,467,049)
Less:
Impairment(iv)(179,080)(171,446)
Property, plant and equipment, net 11,887,778 11,521,863
The Group recorded depreciation expenses of RMB870,588 and RMB864,186 for the six months ended June 30, 2025 and 2024, respectively.
Construction in progress primarily consists of the construction of Guangzhou Xiaopeng technology park, Guangzhou manufacturing plants, molds, toolings, machinery and equipment
relating to the manufacturing of the Group’s vehicles. For the six months ended June 30, 2025 and 2024, the Group capitalized RMB7,504 and RMB27,589 of gross interest expenses, respectively. Government grants related to capitalized
interest expense were accounted for as a reduction of such amounts capitalized in connection with the construction of the manufacturing plants. The benefits of these grants will be reflected through reduced depreciation charges over the useful lives
of these assets. Government grants relating to expensed interest are recognized as a liability if received in advance (of the incurrence of the interest expense). Such amounts, when recognized, will reduce the respective interest expense to which
the subsidies relate.
2 0 2 5 INTERIM REPORT 63
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Property, Plant and Equipment, Net (continued)
The Group entered into a lease contract with Guangzhou GET New Energy Technology Co., Ltd. (“Guangzhou GET New Energy”) to lease the plant and underlying land use right
of Guangzhou manufacturing plant and further had an obligation to purchase the plant and underlying land use right at the construction cost at the end of lease term. On July 1, 2022, the lease commencement date, the lease asset for the plant
was recorded with the amount of RMB1,001,820, being the present value of the lease payment and the exercise price of the purchase obligation.
For the six months
ended 30, 2025 and 2024, the Group completed an assessment of the estimated units of production of certain molds and toolings and the useful lives of certain production facilities, all of which can only be used for certain vehicle production. The
Group’s assessment in the first half of 2025, which considered the upgrade of certain vehicle production, indicated that certain production facilities directly used for certain vehicle production will not be used for the period of time
originally estimated. As a result, the Group changed its estimates of useful lives for the certain production facilities as well as its estimates of the production volume of certain molds and toolings. These changes in estimates are accounted for on
a prospective basis with an acceleration of recorded depreciation expense for impacted production facilities and molds and toolings. The Group recorded an accelerated depreciation expense of RMB85,172 and RMB204,886 related to these changes in
estimates for the six months ended June 30, 2025 and 2024.
The accumulated impairment loss was RMB179,080 and RMB171,446 as of June 30, 2025 and
December 31, 2024, respectively, primarily due to the upgrade of vehicles.
64 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
10. Intangible Assets, Net
Intangible assets, net consisted of the following:
As of June 30, 2025 As of
December 31, 2024
Gross Net Gross Net
Carrying Accumulated Impairment
Carrying Carrying Accumulated Impairment Carrying
Amount Amortization Amount(iv) Amount Amount Amortization Amount(iv) Amount
Finite-lived intangible assets
VPT(i) 2,586,911(431,152) — 2,155,759 2,586,911(301,806)
— 2,285,105
Robotics platform technology(ii) 777,711(136,099) — 641,612 777,711(97,214) — 680,497
VMT(i) 609,170(111,681) — 497,489 609,170(50,764) — 558,406
Software
722,958(468,533)(35,130) 219,295 725,879(424,821)(35,130) 265,928
License of maintenance
and overhauls 2,290(2,290) — — 2,290(2,290) — —
Others(iii)
12,033(3,007) — 9,026 12,033(2,143) — 9,890
Total finite-lived intangible
assets 4,711,073(1,152,762)(35,130) 3,523,181 4,713,994(879,038)(35,130) 3,799,826
Indefinite-lived intangible assets
Manufacturing license 494,000 —
— 494,000 494,000 — — 494,000
Surveying and mapping
qualification 250,000 — — 250,000 250,000 — — 250,000
Others(iii) 66,643 — — 66,643 66,643 — —66,643
Total indefinite-lived
intangible assets 810,643 — — 810,643 810,643
— — 810,643
Total intangible assets 5,521,716(1,152,762)(35,130) 4,333,824 5,524,637(879,038)(35,130) 4,610,469
The Group recorded amortization expense of RMB285,633 and RMB247,411 for the six months ended June 30, 2025 and 2024, respectively.
2 0 2 5 INTERIM REPORT 65
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
10. Intangible Assets, Net (continued)
The useful life of VPT acquired in the business combination of Xiaoju Smart Auto Co. Limited and its wholly-owned subsidiaries (“Xiaoju Group”) is assessed to be 10
years. The VMTUD acquired through business combination
is considered indefinite-lived until the completion of the associated research and development efforts and a
determination related to commercial feasibility. In August, 2024, the VMTUD was transferred into VMT as finite-lived intangible assets upon its completion and its estimated useful life is assessed to be 5 years. Research and development expenditures
that are incurred after the acquisition, including those for completing the research and development activities, are expensed as incurred. No impairment was recognized for these assets for the six months ended June 30, 2025 and 2024.
Dogotix Inc. (“Dogotix”) is primarily engaged in research and development of robots with human-robot interaction functions since 2021. On
September 29, 2023, the Group entered into share purchase agreements to acquire 74.82% of the equity interest of Dogotix for a cash consideration of US$98.96 million (approximated to RMB710 million). Upon completion of the acquisition on
October 9, 2023, Dogotix became a wholly-owned subsidiary of the Group. The fair value of the 25.18% equity interest in Dogotix previously held by the Group amounted to RMB205 million at the acquisition date. The total consideration amounted to
RMB915 million. Substantially all of the fair value of the gross assets (excluding cash and cash equivalents, deferred tax assets, and consideration transferred in excess resulting from the effects of deferred tax liabilities) acquired was
concentrated in the robotics platform technology. The acquisition was determined to be an asset acquisition for accounting purposes. The Group accounted for the acquisition of the robotics platform technology as an intangible asset with a total cost
of RMB778 million. The useful life of this asset is assessed to be 10 years. No impairment was recognized for the asset for the six months ended June 30, 2025 and 2024.
As of June 30, 2025, other finite-lived intangible assets included trademarks, domain names and patents amounting to RMB2,107, RMB1,761 and RMB5,158, respectively. As of
December 31, 2024, other finite-lived intangible assets included trademarks, domain names and patents amounting to RMB2,280, RMB2,026 and RMB5,584, respectively. As of June 30, 2025 and December 31, 2024, other indefinite-lived
intangible assets included license plate amounting to RMB44,643 and insurance agency qualification amounting to RMB22,000.
No impairment was recognized for the
asset for the six months ended June 30, 2025 and 2024.
66 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
11. Land Use Rights, Net
Land use rights and related accumulated amortization consisted of the following:
As of As of
June 30, December 31,
2025 2024
Land use rights 3,465,945 2,918,023
Less: Accumulated amortization(211,356)(173,599)
Total land use rights, net 3,254,589 2,744,424
For the six months ended
June 30, 2025 and 2024, the increase in land use rights was RMB547,921 and nil, respectively, which is related to the construction of plant and buildings for the Group’s manufacturing of vehicles and daily operation.
The Group recorded amortization expenses for land use rights of RMB37,756 and RMB24,880 for the six months ended June 30, 2025 and 2024, respectively.
12. Installment Payment Receivables, Net
Installment payment receivables relating to the
installment payments for vehicles and batteries from customers consisted of the following:
As of As of
June 30, December 31,
2025 2024
Current portion of installment payment receivables, net 2,671,329 2,558,756
Non-current
portion of installment payment receivables, net 4,583,734 4,448,416
Total 7,255,063 7,007,172
2 0 2 5 INTERIM REPORT 67
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
12. Installment Payment Receivables, Net (continued)
Installment payment receivables consisted of the following:
As of As of
June 30, December 31,
2025 2024
Current portion of installment payment receivables 2,704,911 2,590,645
Non-current portion of
installment payment receivables 4,640,636 4,504,348
Allowance for doubtful accounts(90,484)(87,821)
Total 7,255,063 7,007,172
The Group recognized interest income resulting from installment
payment sales of RMB186,160 and RMB166,187 for the six months ended June 30, 2025 and 2024, respectively.
Payment maturity analysis of installment payment
receivables for vehicles and batteries for each of the next five years and a reconciliation of the gross receivables to the present value are as follows:
As of
June 30,
2025
Within 1 year 2,723,413
Between 1 and 2 years 2,197,369
Between 2 and 3 years 1,645,601
Between 3 and 4 years 1,052,008
Between 4 and 5 years 392,707
Thereafter 64
Total receivables of installment payments 8,011,162
Less: Unrealized finance income(665,615)
Installment payment receivables, gross 7,345,547
Less: Allowance for
installment payment receivables(90,484)
Installment payment receivables, net 7,255,063
68 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
13. Long-term Investments
Long-term investments consisted of the following:
Equity Equity
investments investments
without readily with readily
determinable determinable Debt Equity method
fair values(i) fair values(ii) investments(iii)
investments(iv) Total
Balance as of December 31, 2024 173,817 78,351 1,034,204 676,822 1,963,194
Additions — — 44,750 12,791 57,541
Maturities of retained
asset-backed notes(9,575)(9,575)
Investment (loss) gain(4,575) 21,448 87,181 104,054
Share of results of equity method
investees(iv) 36,596 36,596
Foreign currency translation —(192)(4,581)(3,033)(7,806)
Balance as of
June 30, 2025 169,242 99,607 1,151,979 723,176 2,144,004
Equity Equity
investments investments
without readily with readily
determinable determinable Debt Equity method
fair values(i) fair values(ii) investments(iii)
investments(iv) Total
Balance as of December 31, 2023 198,006 104,972 1,228,595 553,360 2,084,933
Investment loss(24,189)(19,466)(11,637)(55,292)
Share of results of equity method
investees(iv) 20,727 20,727
Foreign currency translation — 381 7,529 3,497
11,407
Balance as of June 30, 2024 173,817 85,887 1,224,487 577,584 2,061,775
2 0 2 5 INTERIM REPORT 69
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
13. Long-Term Investments (continued)
Equity investments without readily determinable fair values
In December 2021, the Group
acquired a minority common equity interest in a company, engaged in manufacturing of batteries for new energy vehicles for a total cash consideration of RMB190,000. The equity interests in common stock do not have readily determinable fair values
because the investee is a privately held company. Accordingly, the Group elected to use the measurement alternative under ASC 321 to measure such investment.
In
April 2022, the Group acquired a minority preferred equity interest in a company engaged in research, development, production and sales of batteries for new energy vehicles for a total cash consideration of RMB50,000, which were redeemable merely by
the passage of time at the option of the Group as a holder. Accordingly, the Group elected to account for this investment under the fair value option model. In May 2023, upon completion of the modification in the investee’s shareholding
structure, the preferred shares held by the Group were converted into common shares, which do not have readily determinable fair values because the investee is a privately held company. Accordingly, the Group reclassified this investment from debt
securities to equity securities at the fair value of RMB57,832 upon the modification, and elected to use the measurement alternative under ASC 321 to measure this investment. The difference in the carrying value and the fair value of this investment
immediately before the modification was immaterial.
For equity investments accounted for using the measurement alternative as of June 30, 2025 and
December 31, 2024, the Group recorded cumulative downward adjustments due to impairments of RMB111,380 and RMB106,805, respectively, and cumulative upward adjustments of RMB31,790 and RMB31,790, respectively. For these investments, the Company
recorded downward adjustments of RMB4,575 and RMB24,189, respectively, in earnings for the six months ended June 30, 2025 and 2024.
(ii) Equity investments
with readily determinable fair values
In December 2021, the Group prepaid RMB50,000 as a subscription for a minority equity interest in common shares of a company
engaged in research, development, production and sales of semiconductors, which was converted into common shares in January 2022.
In October 2022, the Group paid
HK$156,982 (equivalent to RMB141,981 as of the injection date) to acquire a minority equity interest in common shares of a company engaged in research, development, production and sales of batteries for new energy vehicles.
The minority equity interests in common shares have readily determinable fair values because the investees are listed companies and the Group does not have the ability to exercise
significant influence over these investments. Accordingly, the Group accounted for them at fair value based on the quoted prices in active markets.
70 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Long-Term Investments (continued)
Debt investments
Investment in HT Flying Car Inc. (“Huitian”)
Huitian is a company incorporated in the Cayman Islands with limited liability and is mainly engaged in research, development, production and sales of flying vehicles. In January
2021, the Group acquired minority preferred equity interests of Huitian (“Huitian’s Series Angel preferred shares”), a related party of the Group, for a total consideration of RMB24,551 during Huitian’s Angel round of fund
raising. The equity interests were not considered to be in-substance common stock as the preferred stock has substantive liquidation preference over the investee’s common stock. Huitian’s Series Angel preferred shares investment are
considered equity securities that do not have readily determinable fair values given that it is a privately held company. Accordingly, upon the acquisition of the minority preferred equity interests of Huitian, the Group elected to use the
measurement alternative under ASC 321 to measure such investment.
In October 2021, the Group further invested US$90,000, equivalent to RMB574,146 as of the
injection date, into Huitian during Huitian’s A round of fund raising. Among this investment, US$70,000 was in form of preferred shares (“Huitian’s Series A preferred shares”) and US$20,000 was in form of a convertible bond.
Concurrently, Huitian’s Series Angel preferred shares previously acquired by the Group in January 2021 were modified to align with the terms of the newly invested Huitian’s Series A preferred shares. The Group concluded that both
Huitian’s Series Angel and Series A preferred shares investment are debt securities since Huitian’s Series Angel (with now modified terms) and Series A preferred shares held by the Group are redeemable merely by the passage of time and
redeemable at the option of the Group.
In anticipation of the change in accounting model applicable to Huitian’s Series Angel preferred shares as a result of
the modification, the Group opted to change its measurement accounting policy relating to Huitian’s Series Angel preferred shares as permitted by ASC 321, and elected to measure the original Huitian’s Series Angel preferred shares at
fair value immediately before the modification (discussed in the preceding paragraph). The difference of RMB591,506 between the carrying value and the fair value of Huitian’s Series Angel preferred shares immediately before the modification
was recognized in earnings. The Group then reclassified Huitian’s Series Angel preferred shares from equity securities to debt securities upon the modification. The modified Huitian’s Series Angel preferred shares investment together
with the new Series A preferred shares investment will be measured on an ongoing basis at fair value with changes recognized in earnings. In addition, the convertible bond (acquired in October 2021) held by the Group in Huitian was also accounted
for under the fair value option model.
In December 2024, the convertible bond with a principal amount of US$20,000 and accrued interest amount of US$4,800 have
been fully converted into Series A preferred shares in accordance with the relevant agreements.
2 0 2 5 INTERIM REPORT 71
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Long-Term Investments (continued)
Debt investments (continued)
Retained asset-backed notes
In March 2025, the Group entered into an asset-backed securitization arrangement with issuance of the notes at the total amount of RMB895,000 and securitized receivables arising
from auto financing arrangements through the transfer of those assets to a securitization vehicle. It is a revolving arrangement where the Group provides management, administration and collection services (at market rates) on the transferred
financial assets, but only retains an insignificant economic interest in the securitization vehicle. As a result, the Group did not consolidate the securitization vehicle (thereby derecognized transferred receivables). The Group classified the
retained asset-backed notes as trading securities.
The preferred shares held by the Group in connection with investment in Huitian and the retained asset-backed
notes are debt securities as they become redeemable merely by the passage of time and are redeemable at the option of the Group as a holder. Accordingly, the Group elected to account for these investments under the fair value option model.
(iv) Equity method investments
In March 2022, the Company and other third
party investors jointly set up an offshore investment fund (“Fund”), named Rockets Capital L.P., for the purpose of making investments in companies and businesses engaging in high technology sectors. The Company subscribed for a
commitment of US$150,000 to the Fund and invested consideration of US$91,835 (equivalent to RMB613,091 as of the injection date) and US$90,055 (equivalent to RMB600,300 as of the injection date) into the Fund as of June 30, 2025 and
December 31, 2024, respectively. The Company held a 60.7% financial interests in the Fund as a limited partner while the other 39.3% financial interests were held by other third party investors as of June 30, 2025 and December 31,
2024.
Based on the Company’s assessment under ASC 810-10-15-14, the investment fund (a limited partnership) is considered to be a VIE for accounting
purposes. The Company is not considered the primary beneficiary of the investment due to the fact that the Company does not possess the power to direct activities of the Fund that would mostly impact its economics performance. As a result, the
Company accounts for its 60.7% financial interests in the Fund using the equity method of accounting pursuant to ASC 323-30 considering that the Company has significant influence over the operating and investing activities of the Fund.
72 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
14. Other Non-current Assets
Other non-current assets consisted of the following:
As of As of
June 30, December 31,
2025 2024
Finance lease receivables, non-current portion, net 199,541 204,435
Deposits(i) 110,651
112,523
Goodwill 34,106 34,106
Non-current portion of prepayments for
advertising
and technical support services 16,750 36,850
Prepayments
for purchase of property and equipment 348 5,649
Others 53,490 49,720
Total
414,886 443,283
Deposits primarily consist of deposits for offices and retail and service centers whose lease expiration dates are not within one year.
Accounts Payable
As of As of
June 30, December 31,
2025 2024
Accounts payable 16,958,863 15,181,585
2 0 2 5 INTERIM REPORT 73
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
15. Accounts Payable (continued)
The Group normally receives credit terms of 0 to 60 days from its suppliers. An aging analysis of accounts payable based on the relevant recognition dates is as follows:
As of As of
June 30, December 31,
2025 2024
0–3 months 15,418,798 14,377,611
3–6 months 1,027,414 327,586
6–12 months 306,322 229,439
Over 1 year 206,329 246,949
Total 16,958,863 15,181,585
16. Notes Payable
As of As of
June 30, December 31,
2025 2024
Bank acceptance notes payable 13,727,997 7,898,896
The bank acceptance notes payable
represents trade payable due to various suppliers, for which the banks have guaranteed the payment. The bank acceptance notes payable are transferable and eligible for discounting by suppliers.
An aging analysis of notes payable based on the relevant issuance dates is as follows:
As of
As of
June 30, December 31,
2025 2024
0–3 months 8,785,445 5,448,028
3–6 months 4,942,552 2,450,868
Total 13,727,997 7,898,896
74 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
17. Accruals and Other Liabilities
Accruals and other liabilities consisted of the following:
As of As of
June 30, December 31,
2025 2024
Payables for purchase of property, plant and equipment 1,623,467 1,799,882
Payables for
R&D expenses 1,242,899 1,069,926
Debt from a third party investor (Note 19(i)) 1,169,973 —
Accrued expenses 1,154,364 958,607
Employee compensation payables 884,967 1,186,036
Accrued cost of purchase commitments(i) 844,209 621,419
Deposits from third
parties 660,703 549,487
Warranty provisions 509,450 389,290
Payables for
marketing events 418,426 447,839
Advances from customers 332,448 376,897
Tax
payables 265,934 435,564
Refundable deposits from customers 197,431 172,762
Interest payables 7,860 41,093
Others 526,356 601,834
Total 9,838,487 8,650,636
Accrued expenses primarily included receipts of goods and services
that the Group had not been invoiced yet.
For the six months ended June 30, 2025, due to the upgrade of certain models, the Group recorded the loss on
purchase commitments mainly for raw materials that were specifically related to these models with amount of RMB190,839 in cost of sales and amount of RMB34,769 in research and development expenses. For the six months ended June 30, 2024, due to
the cessation and upgrade of certain model, the Group recorded the loss on purchase commitments mainly for raw materials that are specifically related to this model with amount of RMB141,605 in cost of sales.
2 0 2 5 INTERIM REPORT 75
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
18. Borrowings
Borrowings consisted of the following:
As of As of
June 30, December 31,
2025 2024
Current
Short-term borrowings:
Bank loans(i) 3,199,123 4,609,123
Long-term borrowings, current portion:
Bank loans(ii) 1,750,983 1,188,998
Asset-backed securities(iii) 499,167 587,470
Asset-backed notes(iv) 12,677 82,145
Total long-term borrowings,
current portion: 2,262,827 1,858,613
Total current borrowings 5,461,950 6,467,736
Non-Current
Long-term borrowings:
Bank loans(ii) 5,754,589 5,431,711
Asset-backed securities(iii) 39,939 232,807
Total non-current borrowings 5,794,528 5,664,518
Total borrowings 11,256,478
12,132,254
76 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
18. Borrowings (continued)
Short-term bank loans
As of June 30, 2025, short-term borrowings from banks in the PRC
amounted to RMB3,199,123 in aggregate. The effective interest rate of these borrowings was 2.09% per annum. As of December 31, 2024, the Group’s short-term borrowings from banks in the PRC amounted to RMB4,609,123 in aggregate. The
effective interest rate of these borrowings was 2.24% per annum.
(ii) Long-term bank loans
As of June 30, 2025 As of December 31, 2024
Current Current
portion portion
according according
to the Effective to the Effective
Outstanding repayment Long-term interest Outstanding
repayment Long-term interest
Ref. Company loan schedule portion rate loan schedule portion rate
1 Zhaoqing XPeng 1,262,000 506,000 756,000 4.23% 1,491,800 234,800 1,257,000 4.05%
2 Zhaoqing
Xiaopeng
New Energy 1,639,547 956,797 682,750 3.16% 1,241,825 743,325 498,500 3.04%
Guangzhou Xiaopeng Motors Financing
Lease Co., Ltd. 148,750 17,500 131,250
3.80% 157,500 17,500 140,000 3.80%
Guangdong Xiaopeng Motors Technology
Group Co., Ltd. 1,000,000 5,000 995,000 2.28% 500,000 2,000 498,000 2.35%
5 Wuhan Xiaopeng 1,989,551 196,769 1,792,782 3.55% 2,077,006 174,906 1,902,100 3.81%
Guangzhou
Pengyue Automobile
Development Co., Ltd. 641,865 13,917 627,948 3.13% 323,720 6,467 317,253 3.43%
7 Guangzhou Xiaopeng
New Energy
Automobile Co., Ltd. 823,859 55,000 768,859 4.46% 828,858 10,000 818,858 4.56%
TOTAL
7,505,572 1,750,983 5,754,589 — 6,620,709 1,188,998 5,431,711 —
2 0 2 5 INTERIM REPORT 77
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
18. Borrowings (continued)
(ii) Long-term bank loans (continued)
As of June 30, 2025, the Group obtained secured
borrowings from several banks of RMB7,505,572 in aggregate. The maturity dates ranged from August 2025 to March 2035. As of December 31, 2024, the Group obtained secured borrowings from several banks of RMB6,620,709 in aggregate. The maturity
dates ranged from January 2025 to November 2033.
Moreover, the Group received subsidies from the local government for interest expenses incurred associated with
the borrowings. As of June 30, 2025 and December 31, 2024, the aggregate sum of loans receiving government-subsidized interest amounts to RMB3,577,411 and RMB3,673,864, respectively. For the six months ended June 30, 2025 and 2024,
upon the acceptance of subsidy application by the local government, the Group recognized the subsidies to reduce the interest expenses capitalized in the construction costs of Zhaoqing manufacturing plant, Guangzhou manufacturing plant and Wuhan
manufacturing base, or to reduce the related interest expenses as incurred, if any.
Certain of the Group’s banking facilities are subject to the fulfillment
of certain financial covenants, including the current ratio and liabilities to assets ratio tests, which are commonly found in lending arrangements with financial institutions. If the Group were to breach the covenants, the drawn down facilities
would become payable on demand. The Group regularly monitors its compliance with these covenants. As of June 30, 2025 and December 31, 2024, none of the covenants relating to drawn down facilities had been breached. Certain long-term bank
loans are collateralized by a pledge of certain buildings and land use rights in the PRC with carrying values of RMB3,346,743 and RMB3,287,759 as of June 30, 2025 and December 31, 2024, respectively. As of June 30, 2025 and
December 31, 2024, long-term deposits of RMB1,118,577 and RMB1,138,479 were collateralized as pledges for certain long-term bank loans, which are classified as “Restricted long-term deposits”.
As of June 30, 2025 and December 31, 2024, long-term deposits, current portion of RMB591,322 and nil were collateralized as pledges for certain long-term bank loans,
which are classified as “Restricted long-term deposits, current portion”.
78 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
18. Borrowings (continued)
(iii) Asset-backed securities (“ABS”)
In March 2024 and October 2024, the Group
entered into asset-backed securitization arrangements with third-party financial institutions and set up two securitization vehicles to issue senior debt securities to third party investors, which are collateralized by installment payment
receivables (the “ABS transferred financial assets”). The Group also acts as a servicer to provide management, administration and collection services on the ABS transferred financial assets and has the power to direct the activities that
most significantly impact the securitization vehicles. The economic interests are retained by the Group in the form of subordinated interests as well as its obligation to absorb losses under certain circumstances. As a result, the Group consolidated
the securitization vehicles. The proceeds from the issuance of debt securities are reported as securitization debt. The securities will be repaid as collections on the underlying collateralized assets occur and the amounts were included in
“Long-term borrowings, current portion” or “Long-term borrowings” according to the contractual maturities of the debt securities. As of June 30, 2025, the balance of current and non-current portion of the ABS were
RMB499,167 and RMB39,939, respectively. As of December 31, 2024, the balance of current and non-current portion of the ABS were RMB587,470 and RMB232,807, respectively.
(iv) Asset-backed notes (“ABN”)
In August 2023, the Group entered into
asset-backed notes by issuing senior debt notes to third party investors, which are collateralized by installment payment receivables (the “ABN transferred financial assets”). The Group also acts as a servicer to provide management,
administration and collection services on the ABN transferred financial assets and has the power to direct the activities that most
significantly impact the
securitization vehicles. The economic interests are retained by the Group in the
form of subordinated interests as well as its obligation to absorb losses under
certain circumstances.
As a result, the Group consolidated the securitization vehicles. The proceeds from the issuance of debt notes are reported as securitization
debt. The notes will be repaid as collections on the underlying collateralized assets occur and the amounts were included in “Long-term borrowings, current portion” or “Long-term borrowings” according to the contractual
maturities. As of June 30, 2025, the balance of current and non-current portion of the ABN were RMB12,677 and nil, respectively. As of December 31, 2024, the balance of current and non-current portion of the ABN were RMB82,145 and nil,
respectively.
The aggregate carrying value of the borrowings approximates fair value as of June 30, 2025 and December 31, 2024, respectively. The
interest rates under the loan agreements with the banks were determined based on the prevailing interest rates in the market. The Group classifies the valuation techniques that use these inputs as Level II.
2 0 2 5 INTERIM REPORT 79
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
18. Borrowings (continued)
(iv) Asset-backed notes (“ABN”) (continued)
The contractual maturities of the
Group’s total borrowings were as follows:
As of June 30, 2025 As of December 31, 2024
Bank Asset-backed Asset-backed Bank Asset-backed Asset-backed
loans securities notes loans
securities notes
Within 1 year 4,950,106 499,167 12,677 5,798,121 587,470 82,145
Between 1 and 2 years 538,562 39,939 — 1,470,605 232,807 —
Between 2 and 5 years
3,613,296 — — 2,524,500 — —
Over 5 years 1,602,731 — — 1,436,606 — —
Total 10,704,695 539,106 12,677 11,229,832 820,277 82,145
19. Other Non-Current Liabilities
Other non-current liabilities consisted of the following:
As of As of
June 30, December 31,
2025 2024
Warranty provisions(ii) 991,268 809,437
Government grants 230,310 201,823
Debt from third party investors(i) 163,033 1,316,206
Deposits from a third party(iii) 102,970
118,310
Total 1,487,581 2,445,776
80 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Other Non-Current Liabilities (continued)
The debt from third party investors consisted of the following three financing arrangements:
Financing in an amount of RMB160 million from Guangzhou GET Investment Holdings Co., Ltd. (“Guangzhou GET Investment”)
In December 2020, Chengxing and Guangzhou Xiaopeng Automotive Investment Co., Ltd. (“Guangzhou Xiaopeng Investment”), subsidiaries of the Group, entered into a
partnership agreement with Guangzhou GET Investment to set up a limited liability partnership entity (the “Kunpeng Chuangye LLP”) whose operating period is designed for 9 years since the date of the registration of its business license.
Chengxing, Guangzhou Xiaopeng Investment and Guangzhou GET Investment subscribed for RMB200,000, RMB10 and RMB160,000 paid in capital in Kunpeng Chuangye LLP in return for 55.5540%, 0.0028% and 44.4432% of the equity interests, respectively. The
consideration of RMB160 million was paid by Guangzhou GET Investment to Kunpeng Chuangye LLP in January 2021. Pursuant to the investment agreement, Guangzhou GET Investment does not have substantive participating rights in Kunpeng Chuangye LLP nor
it is able to transfer their interest in Kunpeng Chuangye LLP to other third party. During the 9-year operating period of Kunpeng Chuangye LLP, Guangzhou GET Investment is only entitled to interest calculated at an interest rate of 4% per annum
based on its investment amount of RMB160,000 in Kunpeng Chuangye LLP. Upon liquidation, if any, at any time within 9 years or at the due date of the 9-year operating period, Guangzhou GET Investment will be entitled to and only entitled to its
investment amount amounting to RMB160,000. If Kunpeng Chuangye LLP failed to pay the investment amount of RMB160,000 or the interest calculated at an interest rate of 4% per annum to Guangzhou GET Investment, Chengxing, also guaranteed by
Xiaopeng Technology, will be liable for the unpaid amounts. Based on these arrangements, the Group consolidates Kunpeng Chuangye LLP via its subsidiaries Chengxing and Guangzhou Xiaopeng Investment. The Group regards the investment held by Guangzhou
GET Investment as a liability with interest expenses amortized through the period given the risks and rewards of owning 44.4432% of equity interests in Kunpeng Chuangye LLP have been retained by the Group and the substance of the transaction is that
Guangzhou GET Investment is providing financing to the Group via Kunpeng Chuangye LLP.
The interest payable, amounted to RMB3,033 and RMB6,233 as of June 30,
2025 and December 31, 2024, respectively, for the investment held by Guangzhou GET Investment was calculated at an interest rate of 4% per annum. The interest of RMB6,400 and RMB6,400 was repaid to Guangzhou GET Investment by the Group for
the six months ended June 30, 2025 and 2024, respectively.
2 0 2 5 INTERIM REPORT 81
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Other Non-Current Liabilities (continued)
The debt from third party investors consisted of the following three financing arrangements (continued):
Financing in an amount of RMB1,000 million from Guangzhou GET Investment
Pursuant to the share
purchase agreement, dated March 30, 2021, signed among Chengxing, Chengxing’s shareholders and Guangzhou GET Investment, Guangzhou GET Investment subscribed for common stock newly issued by Chengxing at a consideration of RMB1,000
million. Immediately after the share subscription, Guangzhou GET Investment began to hold 1.0640% of equity interest in Chengxing. The consideration of RMB1,000 million was paid by Guangzhou GET Investment on March 31, 2021 (“Initial
Capital Injection Date of Guangzhou GET Investment”). Pursuant to the terms of the agreement, conditional upon the disclosure of any plan of any potential onshore listing by any entity affiliated with Chengxing on any stock exchange in the PRC
within 5 years after the Initial Capital Injection Date of Guangzhou GET Investment, Guangzhou GET Investment is entitled to request Guangdong Xiaopeng Motors Technology Co., Ltd. to purchase the shares of Chengxing held by it for cash, such that it
could use the relevant funds to participate in such potential onshore public offering. Under the share purchase agreement, no guaranteed allocation of such public offering shares will be granted to Guangzhou GET Investment. The amount to be paid by
Guangdong Xiaopeng Motors Technology Co., Ltd. for such purchase is to be calculated with reference to the consideration paid by Guangzhou GET Investment, i.e. RMB1,000 million and an interest at a rate of 4% or 6% per annum pursuant to the
terms of the share purchase agreement. Upon the fifth anniversary of the Initial Capital Injection Date of Guangzhou GET Investment, if Guangzhou GET Investment, Guangdong Xiaopeng Motors Technology Co., Ltd. and Chengxing fail to reach an agreement
on the terms of such potential onshore listing in the PRC, or such relevant entity cannot successfully become listed in the PRC, Guangdong Xiaopeng Motors Technology Co., Ltd. is entitled to request Guangzhou GET Investment to sell, or Guangzhou GET
Investment is entitled to request Guangdong Xiaopeng Motors Technology Co., Ltd. to purchase, the common stock in Chengxing held by Guangzhou GET Investment at a price of RMB1,000 million plus interest calculated at the rate of 4% per annum. In
addition, pursuant to the terms of the arrangement, Guangzhou GET Investment does not have substantive participating rights in Chengxing. The Group regards the investment held by Guangzhou GET Investment as a liability with interest expenses
amortized through the period as the risks and rewards of owning the 1.0640% of equity interest in Chengxing have been retained by the Group and the substance of the transaction is that Guangzhou GET Investment is providing financing to Chengxing.
The interest payable for the investment by Guangzhou GET Investment, amounted to RMB169,973 and RMB149,973 as of June 30, 2025 and December 31, 2024,
respectively, was calculated at an interest rate of 4% per annum.
As of June 30, 2025, the principal amount of RMB1,000,000 and interest of RMB169,973
will be due within one year and were classified to “Accruals and Other Liabilities”.
82 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Other Non-Current Liabilities (continued)
Movement of accrued warranty is as following:
For the Six Months Ended June 30,
2025 2024
Accrued warranty — beginning of the period 1,198,727
1,008,993
Warranty costs incurred(114,157)(82,904)
Provision for warranty
416,148 235,281
Accrued warranty — end of the period 1,500,718 1,161,370
Less: Current portion of warranty(509,450)(279,329)
Non-current portion of
warranty 991,268 882,041
Deposits from a third party represent the refundable deposit for the finance lease cooperation in which the Group serves as the lessor.
Revenues
Revenues by source consisted of the following:
For the Six Months Ended June 30,
2025 2024
Revenue from contracts with customers
Vehicle sales
— At a point in time 31,252,994 12,363,263
Services and others
— At a point in time 1,331,264 943,558
— Over time 1,290,763
1,161,414
Revenue from other sources
Services and others 210,012
191,268
Total 34,085,033 14,659,503
2 0 2 5 INTERIM REPORT 83
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
21. Deferred Revenue
The following table shows a reconciliation in the current reporting period related to carried-forward deferred revenue.
For the Six Months Ended June 30,
2025 2024
RMB RMB
Deferred revenue — beginning of the period 2,098,435 1,299,943
Additions 33,054,786 13,266,602
Recognition(32,609,930)(13,009,755)
Deferred revenue — end of the period 2,543,291 1,556,790
Less: Deferred revenue, current
portion(1,491,637)(889,625)
Deferred revenue, non-current portion 1,051,654 667,165
Deferred revenue represents transaction price allocated to the performance obligations that are not yet satisfied or partially satisfied, which primarily arises from the
undelivered vehicles, technical research and development services, charging piles, free battery charging within 3 or 6 years, the extended lifetime warranty, option between household charging pile and charging card, services of lifetime free battery
charging in XPeng-branded charging station, lifetime warranty of battery as well as vehicle internet connection services, with unrecognized deferred revenue balance of RMB2,543,291 and RMB1,556,790, as of June 30, 2025 and June 30, 2024,
respectively.
The Group expects that 59% of transaction price allocated to unsatisfied performance obligations which were accounted for as deferred revenue as of
June 30, 2025 will be recognized as revenue during the period from July 1, 2025 to June 30, 2026. The remaining 41% will be substantially recognized during the period from July 1, 2026 to June 30, 2035.
22. Ordinary Shares
As of December 31, 2023, 1,538,109,009 Class A ordinary shares
had been issued, out of which, 1,535,297,395 Class A ordinary shares were outstanding, and 348,708,257 Class B ordinary shares had been issued and outstanding.
The Group issued 5,401,218 Class A ordinary shares for the six months ended June 30, 2024, out of which, 684,874 Class A ordinary shares are
outstanding and transferred to employees for the vested RSUs and 4,716,344 Class A ordinary shares are treasury shares held by XPeng.
XPeng and XPeng Fortune
Holding Limited transferred 3,363,176 Class A treasury shares to employees for the vested RSUs for the six months ended June 30, 2024, respectively.
84 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
22. Ordinary Shares (continued)
As of June 30, 2024, 1,543,510,227 Class A ordinary shares had been issued, out of which, 1,539,345,445 Class A ordinary shares were outstanding, and 348,708,257
Class B ordinary shares had been issued and outstanding.
As of December 31, 2024, 1,551,709,362 Class A ordinary shares had been issued, out of which,
1,549,404,500 Class A ordinary shares were outstanding, and 348,708,257 Class B ordinary shares had been issued and outstanding.
The Group issued 5,791,792
Class A ordinary shares for the six months ended June 30, 2025, out of which, 668,208 Class A ordinary shares are outstanding and transferred to employees for the vested RSUs and 5,123,584 Class A ordinary shares are treasury
shares held by XPeng Inc.
XPeng and XPeng Fortune Holding Limited transferred 3,698,538 Class A treasury shares to employees for the vested RSUs for the six
months ended June 30, 2025, respectively.
As of June 30, 2025, 1,557,501,154 Class A ordinary shares had been issued, out of which, 1,553,771,246
Class A ordinary shares were outstanding, and 348,708,257 Class B ordinary shares had been issued and outstanding.
23. Share-based Compensation
2019 Equity Incentive Plan (“2019 Plan”)
On June 28, 2020, the board of
directors of the Company approved the 2019 Plan with 161,462,100 Class A ordinary shares reserved. Options, restricted shares, RSUs, dividend equivalents, share appreciation rights and share payments may be granted under the 2019 Plan.
One RSU represents a right relating to one Class A ordinary share of the Group with a par value of US$0.00001 per share.
The RSUs primarily include both service and performance conditions. For service condition, vesting schedules include:
(i) 25% of the RSUs shall become vested on each anniversary of the vesting commencement date for four years thereafter; (ii) 40% of the RSUs shall become vested on the grant
date and 15% of the RSUs become vested on each anniversary of the vesting commencement date for four years thereafter; (iii) 25% of the RSUs shall become vested on the first anniversary of the vesting commencement date, and the remaining 75% of
the RSUs shall become vested in equal installments on each quarterly anniversary of the vesting commencement date for three years thereafter. In addition to the service conditions, for the RSUs granted prior to the completion of the IPO, employees
are also required to provide continued service through the satisfaction of the occurrence of change of control or an IPO (“Liquidity Event”) that occurs within seven or ten years after the vesting commencement date. For RSUs with
performance conditions which were granted subsequent to the completion of the IPO, employees are required to achieve the performance targets relating to performance appraisal results as set out in the respective relevant award agreements over the
respective requisite service period.
2 0 2 5 INTERIM REPORT 85
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
23. Share-based Compensation (continued)
2019 Equity Incentive Plan (“2019 Plan”) (continued)
The RSUs granted prior to the
completion of the IPO are measured at the grant date fair value of the awards and recognized as expense using the graded vesting method, net of estimated forfeitures, if any, over the requisite service period.
Subsequent to the completion of the IPO, RSUs with only a service condition to employees under the 2019 Plan are vested on a straight-line basis net of estimated forfeitures, if
any, over the requisite service period. RSUs with both service and performance conditions are recognized as expenses using the graded vesting method, net of estimated forfeitures, if any, over the requisite service period, when the performance
condition is concluded to be probable to achieve.
2025 Share Incentive Scheme (“2025 Scheme”)
The 2025 Scheme was adopted by the Board on March 18, 2025 and approved by the shareholders at the annual general meeting of the Company on June 27, 2025. The total
number of Class A ordinary shares which may be issued in respect of all awards to be granted under the 2025 Scheme and any other share schemes or plans of the Company, shall not in aggregate exceed 10% of the total number of Shares in issue as
at the date on which the 2025 Scheme is approved by the shareholders. The award of options or RSUs can be granted under the 2025 Scheme. Upon the effectiveness of the 2025 Scheme on June 27, 2025, the 2019 Equity Incentive Plan will be
discontinued so that no further grant will be made under the 2019 Equity Incentive Plan. For the avoidance of doubt, all RSUs granted under the 2019 Equity Incentive Plan before the effectiveness of the 2025 Scheme will remain valid and be able to
be vested, lapsed and cancelled pursuant to the terms and conditions of the 2019 Equity Incentive Plan.
A summary of the Group’s RSU activity under 2019 Plan
for the six months ended June 30, 2025 and 2024 is as follows:
Weighted
Number of average
restricted grant date
share units fair value
RMB
Outstanding as of December 31, 2024(i) 31,265,818 40.07
Granted 5,121,904 59.37
Vested(4,366,746) 45.05
Forfeited(2,282,482) 42.60
Outstanding as of June 30, 2025 29,738,494 42.84
Expected to vest as of June 30,
2025 24,995,240
86 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
23. Share-based Compensation (continued)
Weighted
Number of average
restricted grant date
share units fair value
RMB
Outstanding as of December 31, 2023(i) 29,194,817 54.42
Granted(i) 6,397,872 25.65
Vested(4,048,050) 52.44
Forfeited(4,121,868) 67.21
Outstanding as of June 30, 2024(i) 27,422,771 46.58
Expected to vest as of June 30, 2024(i) 23,540,258
Share-based
compensation expense amounting to RMB244,679 and RMB216,017 were recognized for RSUs under 2019 Plan for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, there was RMB705,918 of unrecognized compensation
expense relating to the RSUs under 2019 Plan. Excluding the 2022 Performance Based Award mentioned below, the expense is expected to be recognized over a weighted average period of 2.78 years.
2022 Performance Based Award
In November 2022, the board of directors of the Company granted
8.02 million RSUs to certain employees (“2022 Award”) under 2019 Plan. The 2022 Award consists of five vesting tranches with both service and performance conditions. Such employees are required to provide continued services through
the achievement of the performance conditions which were different for each vesting tranche. The Group will recognize the compensation cost when the performance conditions become probable of achievement. Two of the five tranches of the 2022 Award
had achieved the necessary performance condition as of June 30, 2025 and become probable to vest. As of June 30, 2025, unrecognized compensation expenses relating to the 2022 Award amounted to RMB40,538 as the remaining performance
conditions were still not considered probable of achievement.
2 0 2 5 INTERIM REPORT 87
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
23. Share-based Compensation (continued)
2025 CEO Performance Award under 2025 Scheme
In June 2025, the Annual General Meeting approved
the Board of Directors’ grant of 28,506,786 RSUs to the Group’s CEO (the “2025 CEO Award”) under 2025 Scheme. The 2025 CEO Award consists of 3 vesting tranches, 9,502,262 RSUs per tranche, with a vesting schedule based
entirely on the attainment of market conditions, assuming continued employment through each vesting date. Each of the 3 vesting tranches of the 2025 CEO Award will vest upon the arithmetic average closing price of the shares as stated in the Hong
Kong Stock Exchange’s daily quotations sheet for any 30 consecutive Business Days first reaches or exceeds HK$250, HK$500 and HK$750.
Share-based
compensation expense associated with the 2025 CEO Award is recognized over the expected achievement period for each market capitalization milestone. The market capitalization milestone period and the valuation of each tranche are determined using a
Monte Carlo simulation and is used as the basis for determining the expected achievement period, share-based compensation represents a non-cash expense and is recorded as a selling, general, and administrative operating expense in our unaudited
condensed consolidated statement of comprehensive loss.
As of June 30, 2025, there was RMB1,054,635 of total unrecognized stock-based compensation expense,
which will be recognized over a weighted-average period of 4.96 years. From June 27, 2025, when the grant was approved by the Annual General Meeting, through June 30, 2025, the Group recorded share-based compensation expense of RMB1,824
related to the 2025 CEO Performance Award.
24. Taxation
Composition of income
tax benefit for the periods presented are as follows:
For the Six Months Ended June 30,
2025 2024
Current income tax expenses 6,870 7,033
Deferred income tax benefit(8,300)(39,746)
Income tax benefit(1,430)(32,713)
88 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
25. Loss Per Share
Basic loss per share and diluted loss per share have been calculated in accordance with ASC 260 on computation of earnings per share for the six months ended June 30, 2025 and
2024 as follows:
For the Six Months Ended
June 30,
2025 2024
Numerator:
Net loss(1,141,800)(2,652,571)
Net loss attributable to ordinary shareholders of
XPeng(1,141,800)(2,652,571)
Denominator:
Weighted average number of ordinary
shares outstanding-basic and diluted 1,900,912,109 1,886,710,018
Basic and diluted net loss per share attributable to
ordinary shareholders of XPeng(0.60)(1.41)
For the six months ended June 30, 2025
and 2024, the Company had potential ordinary shares, including non-vested RSUs granted and contingently issuable shares relating to contingent consideration. As the Group incurred losses for the six months ended June 30, 2025 and 2024, these
potential ordinary shares were anti-dilutive and excluded from the calculation of diluted net loss per share of the Company. The weighted-average numbers of non-vested RSUs excluded from the calculation of diluted net loss per share of the Company
were 33,072,605 and 28,762,553 as of June 30, 2025 and 2024, respectively. The number of contingently issuable shares relating to contingent consideration excluded from the calculation of diluted net loss per share of the Company is between nil
and 14,276,521, between nil and 32,967,573, as of June 30, 2025 and 2024, respectively.
2 0 2 5 INTERIM REPORT 89
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
26. Related parties
The principal related parties with which the Group had transactions during the periods presented are as follows:
Name of Entity or Individual Relationship with the Company
Mr. Xiaopeng He Principal
Shareholder of the Company, Chairman of the
Board and Chief Executive Officer
Mr. Hongdi Brian Gu Honorary Vice Chairman of the Board and President
Mr. Tao He(2)
Former Senior Vice President
HT Flying Car Inc. A Company Significantly Influenced by the
Principal Shareholder
HT Flying Car (Hong Kong) Limited A Company Significantly
Influenced by the
Principal Shareholder
Guangzhou Huitian Aerospace
Technology Co., Ltd. A Company Significantly Influenced by the
(“Guangzhou Huitian”) Principal Shareholder
Guangdong Huitian Aerospace Technology Co., Ltd. A Company Significantly Influenced by the
(“Guangdong Huitian”) Principal Shareholder
Guangzhou
Huitian Flying Car Manufacturing Co., Ltd. A Company Significantly Influenced by the
Principal Shareholder
Guangzhou Huitian Manufacturing Co., Ltd. A Company Significantly Influenced by the
Principal Shareholder
Foshan Huitian Aviation Technology Co., Ltd. A
Company Significantly Influenced by the
Principal Shareholder
Rockets
Capital L.P.(1) A Partnership Significantly Influenced by the Company
Guangzhou Xuetao(2) A Company Controlled by the Company Secretary
As of June 30, 2025, the Principal Shareholder and the President are the shareholders of the General Partner of Rockets Capital L.P. and the President is entitled to appoint
one of three directors of the General Partner. The Group, together with its related parties, can exercise significant influence over Rockets Capital L.P. (Note 13(iv)).
Mr. Tao He joined the Company as senior vice president in January 2015 and was appointed as director in March 2020. In July 2021, he resigned from the directorship with effect
from the Global Offering. Since June 2022, he established and jointly controlled Guangzhou Xuetao with 50% equity interests. He had resigned from senior vice president since April 2023. The Company Secretary of the Group controlled Guangzhou Xuetao
with 100% equity interests after Mr. Tao He withdrew his shareholding in Guangzhou Xuetao in February 2024.
90 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
26. Related parties (continued)
(3) Major transactions with related parties:
(i) Trade in nature
For the Six Months Ended
June 30,
2025 2024
Provision of operational support services to companies
significantly influenced by the Principal Shareholder 22,935 18,566
Provision of
leasing services to companies significantly
influenced by the Principal Shareholder 27 190
Sales of goods to companies significantly influenced by the
Principal Shareholder
2,435 916
Purchase of services from companies significantly influenced
by the Principal Shareholder 6,697 292
(4) Amounts due from related
parties:
As of As of
June 30, December 31,
2025 2024
Receivables for operation support service to the companies
significantly influenced by the Principal Shareholder 51,978 41,889
Receivables for
sales of goods to the companies significantly
influenced by the Principal Shareholder 1,538 1,825
Total 53,516 43,714
2 0 2 5 INTERIM REPORT 91
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
26. Related parties (continued)
(5) Amounts due to related parties:
As of As of
June 30, December 31,
2025 2024
Advances from the companies significantly influenced by the
Principal Shareholder 4 2
Payables for purchased service to companies significantly
influenced
by Principal Shareholder 980 9,362
Total 984 9,364
(6) Investment Commitment:
As of As of
June 30, December 31,
2025 2024
Investment commitment to a partnership significantly influenced by the
Company (Note 27(a)) 390,423 404,846
(7) Key management compensation
Compensation of key management personnel of the Group for the six months ended June 30, 2025 and 2024 were as follows:
For the Six Months Ended
June 30,
2025 2024
Basic salaries, housing fund, allowances and benefits in kind 38,765 45,420
Employer’s contributions to a retirement benefit scheme 26 84
Discretionary bonuses 2,269 2,221
Total 41,060 47,725
92 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
27. Commitments and Contingencies
(a) Capital commitments
Capital expenditures contracted for at the balance sheet dates but not
recognized in the unaudited condensed consolidated financial statements are as follows:
As of As of
June 30, December 31,
2025 2024
Investments 390,423 404,846
Property, plant and equipment 628,356 312,417
Total 1,018,779 717,263
(b) Purchase commitments
Purchase expenditures contracted for at the balance sheet dates but not recognized in the unaudited condensed consolidated financial statements are as follows:
As of As of
June 30, December 31,
2025 2024
Purchase commitments on purchase of raw materials(i) 4,633,656 3,516,597
(i) Such amount excludes purchase commitments related to certain models which have been upgraded or where production has ceased. Losses on such commitments have been accured for
the six months ended June 30, 2025 and 2024, respectively (Note 17).
28. Subsequent events
The Group has performed an evaluation of subsequent events through the date of this report, which is the date the unaudited condensed consolidated financial statements were issued,
with no material events or transactions needing recognition or disclosure found.
2 0 2 5 INTERIM REPORT 93
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Reconciliation between U.S. GAAP and International Financial Reporting Accounting Standards
The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP, which differ in certain respects from IFRS Accounting
Standards. The main reconciling items include onerous contract, operating leases, share-based compensation, warranty provisions and investments measured at fair value. The following table sets forth the effects of material differences prepared under
U.S. GAAP and IFRS Accounting Standards:
For the Six Months Ended
June 30
2025 2024
Reconciliation of net loss attributable to the Company in
the unaudited condensed
consolidated statement of comprehensive loss
Net loss attributable to the Group in the unaudited condensed
consolidated statement of comprehensive loss as reported under U.S. GAAP(1,141,800)(2,652,571)
IFRS adjustments:
Onerous contract (Note(a)) 1,929 30,513
Operating leases (Note(b))(17,857)(13,638)
Share-based compensation (Note(c))
31,062 107,470
Warranty provisions (Note(d)) 25,648 10,787
Investments measured at fair value (Note(e))(4,305) —
Net loss attributable to the Group in the unaudited condensed
consolidated statement of comprehensive loss as reported under IFRS(1,105,323)(2,517,439)
As of As of
June 30, December 31,
2025 2024
Reconciliation of total shareholders’ equity in the unaudited condensed
consolidated balance sheets
Total shareholders’ equity as
reported under U.S. GAAP 30,337,367 31,274,788
IFRS adjustments:
Onerous contract (Note(a))(35,214)(37,143)
Operating leases
(Note(b))(150,771)(132,914)
Warranty provisions (Note(d)) 132,473 106,825
Investments measured at fair value (Note(e)) 5,745 10,050
Total shareholders’
equity as reported under IFRS Accounting Standards 30,289,600 31,221,606
94 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Reconciliation between U.S. GAAP and International Financial Reporting Accounting Standards
(continued)
(a) Onerous contract
In the third quarter of 2019, due to the
upgrade of the G3 2019 to G3 2020, the Group voluntarily offered a customer upgrade program to all owners of G3 2019 model which was disclosed in Note 2(r). The additional promises included in the customer upgrade program for G3 2019 customers
resulted in the Company incurring additional costs to fulfill the related additional promises upon the modification of the contracts with the customers. Such incremental costs exceeds the economic benefits expected to be received under the contract.
Consequently the upgrade program resulted in an “onerous contract” situation.
In the fourth quarter of 2023, due to the upgrade of the latest
Intelligent Driving System, the Group voluntarily offered a customer voucher benefit to all current owners of P5 P-edition model equipped with XPILOT 3.5. The additional commitment included in the voucher benefit for these customers results in more
costs to fulfill the related new contracts upon the modification and consequently resulted in an “onerous contract” situation.
Under U.S. GAAP, there
is no general guidance available for the recognition of onerous contract except for certain types of contracts or industry-specific arrangements. None of which is considered applicable to the Company’s situation above. Under IFRS Accounting
Standards, provisions are recognized when a contract becomes onerous, which occurs when the unavoidable costs of meeting the obligation(s) under a contract exceed the economic benefits to be received.
Accordingly, the reconciliation includes an onerous contract cost reversal of RMB1,929 and RMB30,513 reversed in the unaudited condensed consolidated statement of comprehensive
loss for each of the six months ended June 30, 2025 and 2024, respectively. The amounts represent the net losses incurred by the Group as a result of the onerous contract aforementioned above when it first offered (i) the upgrade program
to its G3 customers during the year ended December 31, 2019 and the reversal of such losses as the onerous contract provision was fully utilized as of December 31, 2022 and (ii) its P5 customers during the year ended December 31,
2023 and the reversal of such losses as the onerous contract provision was partially utilized as of December 31, 2023. The reconciliation also includes a difference of onerous contract provision made of RMB35,214 and RMB37,143 as of
June 30, 2025 and December 31, 2024, respectively.
2 0 2 5 INTERIM REPORT 95
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Reconciliation between U.S. GAAP and International Financial Reporting Accounting Standards
(continued)
(b) Operating leases
For operating leases under U.S. GAAP, the
subsequent measurement of the lease liability is based on the present value of the remaining lease payments using the discount rate determined at lease commencement, while the right-of-use asset is remeasured at the amount of the lease liability,
adjusted for the remaining balance of any lease incentives received, cumulative prepaid or accrued rents, unamortized initial direct costs and any impairment. This treatment under U.S. GAAP results in straight line expense being incurred over the
lease term, as opposed IFRS Accounting Standards which generally yields a “front-loaded” expense with more expense recognized in earlier years of the lease.
Accordingly, the reconciliation includes an expenses difference recognized in the unaudited condensed consolidated statement of comprehensive loss of RMB17,857 and RMB13,638 for
the six months ended June 30, 2025 and 2024, respectively. The reconciliation also includes a difference in total shareholders’ equity of RMB150,771 and RMB132,914 as of June 30, 2025 and December 31, 2024, respectively.
(c) Share-based compensation
Subsequent to the completion of the IPO, the
Group granted RSUs with service condition only to certain employees. The share-based compensation expenses were recognized over the vesting period using straight-line method under U.S. GAAP. While under IFRS Accounting Standards, the graded vesting
method must be applied. Accordingly, the reconciliation includes an expense reversal of RMB31,062 and RMB107,470 in the unaudited condensed consolidated statement of comprehensive loss for the six months ended June 30, 2025 and 2024,
respectively.
(d) Warranty provisions
Under U.S. GAAP, the amount of the
warranty provisions is not required to be discounted. While under IFRS Accounting Standards, it requires that the amount of warranty provisions be the present value of the expenditure expected to be required to settle the obligation.
Accordingly, the reconciliation includes a cost of sales recognition difference in the unaudited condensed consolidated statement of comprehensive loss of RMB25,648 and RMB10,787
for the six months ended June 30, 2025 and 2024 in relation to the warranty cost. The reconciliation also includes a difference in total shareholders’ equity of RMB132,473 and RMB106,825 as of June 30, 2025 and December 31,
2024, respectively.
96 XPeng Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
(All amounts in thousands,
except for share and per share data, unless otherwise stated)
Reconciliation between U.S. GAAP and International Financial Reporting Accounting Standards
(continued)
(e) Investments measured at fair value
Under U.S. GAAP, the Group
elected to record equity investments without readily determinable fair values using the measurement alternative at cost, less impairment, adjusted for subsequent observable price changes on a non-recurring basis, and report the changes in the
carrying value of the equity investments in current earnings. Under IFRS Accounting Standards, these investments were classified as financial assets at fair value through profit or loss and measured at fair value with changes in fair value
recognized through profit or loss.
Accordingly, the reconciliation includes a fair value loss of RMB4,305 and nil on these investments in the unaudited condensed
consolidated statement of comprehensive loss for the six months ended June 30, 2025 and 2024, respectively. The reconciliation also includes a difference in total shareholder’s equity of RMB5,745 and RMB10,050 as of June 30, 2025 and
December 31, 2024, respectively.
2 0 2 5 INTERIM REPORT 97
General Information
(1) DIVIDENDS
The Board did not recommend the distribution of an interim dividend for the six months ended June 30, 2025.
(2) PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES
On January 2,
2025, the Company issued 34,874 Class A ordinary shares to satisfy the RSUs pursuant to the 2019 Equity Incentive Plan.
On March 21, 2025, the Company
issued 2,464,214 Class A ordinary shares to satisfy the RSUs pursuant to the 2019 Equity Incentive Plan.
On April 1, 2025, the Company issued 600,000
Class A ordinary shares to satisfy the RSUs pursuant to the 2019 Equity Incentive Plan.
On April 23, 2025, the Company issued 33,334 Class A
ordinary shares to satisfy the RSUs pursuant to the 2019 Equity Incentive Plan.
On June 23, 2025, the Company issued 2,659,370 Class A ordinary shares to
satisfy the RSUs pursuant to the 2019 Equity Incentive Plan.
Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold or redeemed
any of the Company’s listed securities (including sale of treasury shares) during the Reporting Period. The Company did not have any treasury shares (within the meaning of the Hong Kong Listing Rules) as at June 30, 2025.
INTERESTS AND/OR SHORT POSITIONS OF DIRECTORS AND CHIEF EXECUTIVE IN SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY OR ITS ASSOCIATED CORPORATIONS
As of June 30, 2025, the interests and/or short positions (as applicable) of our Directors and chief executive in the shares, underlying shares and debentures of our Company
and its associated corporations, within the meaning of Part XV of the SFO, which were required to be notified to our Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and/or short positions (as
applicable) which he/she was taken or
98 XPeng Inc.
General Information
deemed to have under such provisions of the SFO), or which were required,
pursuant to section 352 of the SFO, as recorded in the register referred to therein, or which were required to be notified to our Company and the Stock Exchange pursuant to the Model Code, were as follows:
Interests in the shares of the Company
Approximate
percentage
of interest of each
Name of Nature of Number and class of Long position/ class of shares
Director interest
Relevant entity shares(1) Short position in the Company(1)
Xiaopeng He Interest in Simplicity Holding 327,708,257 Class B Long position 94.0%
controlled Limited ordinary shares
corporation
Interest in Respect Holding 21,000,000 Class B Long position 6.0%
controlled
Limited ordinary shares
corporation
Interest in Simplicity
Holding 4,400,000 Class A Long position 0.3%
controlled Limited ordinary shares
corporation
Interest in Galaxy Dynasty 2,839,844 Class A Long position 0.2%
controlled Limited ordinary shares
corporation
Beneficial owner(2) N/A 29,506,786 Class A Long position 1.9%
ordinary shares
Fang Qu Beneficial owner(3) N/A 11,550 Class A
Long position 0.0%
ordinary shares
Donghao Yang Beneficial owner(4)
N/A 27,216 Class A Long position 0.0%
ordinary shares
Notes:
As of June 30, 2025, the Company had 1,906,209,411 issued shares in total, comprising 1,557,501,154 Class A ordinary shares (including 2,664,944
Class A ordinary shares issued to our depository bank for bulk issuance of ADSs and reserved for future issuance upon the exercise or vesting of awards granted under our 2019 Equity Incentive Plan) and 348,708,257 Class B ordinary shares.
As of June 30, 2025, Mr. Xiaopeng He beneficially held 1,000,000 Class A ordinary shares, and he was interested in 28,506,786 Class A ordinary
shares underlying 28,506,786 RSUs granted to him under the 2025 Share Incentive Scheme, which have not vested yet.
2 0 2 5 INTERIM REPORT 99
General Information
As of June 30, 2025, Ms. Fang Qu beneficially held 11,550
Class A ordinary shares.
As of June 30, 2025, Mr. Donghao Yang was interested in 27,216 Class A ordinary shares underlying 27,216 RSUs granted
to him under the 2019 Equity Incentive Plan, which have not vested yet.
Save as disclosed above, as of June 30, 2025, so far as was known to any Director or
the chief executive of the Company, none of the Directors or chief executive of the Company or their respective close associates had any interests or short/long positions in any shares, underlying shares or debentures of the Company or any of its
associated corporations as recorded in the register required to be kept pursuant to Section 352 of the SFO or as otherwise notified to the Company and the Hong Kong Stock Exchange pursuant to the Model Code.
INTERESTS AND/OR SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS IN SHARES AND UNDERLYING SHARES OF THE COMPANY
As of June 30, 2025, so far as was known to the Directors or chief executive of the Company, the following persons (other than the Directors or chief executive of the Company)
had the following interests and/or short positions in the Shares or underlying Shares of the Company which would fall to be disclosed under the provisions of Divisions 2 and 3 of Part XV of the SFO or as recorded in the register required to be kept
pursuant to Section 336 of the SFO:
Approximate % of
Shareholding in
Respective Class
Capacity/ Number of Long position/ of Share of the
Name of Shareholder Nature of Interest Shares(1) Short position Company(1)
Class A ordinary shares
Volkswagen Finance Luxemburg S.A.(2) Beneficial
interest 94,079,255 Long position 6.0%
Volkswagen AG(2) Interest in controlled 94,079,255 Long position 6.0%
corporations
Porsche Automobil Holding SE(2) Interest in controlled 94,079,255 Long
position 6.0%
corporations
Ferdinand Porsche Familien-Holding
Interest in controlled 94,079,255 Long position 6.0%
GmbH(2) corporations
Ferdinand Porsche Familien- Interest in controlled 94,079,255 Long position 6.0%
Privatstiftung(2) corporations
BlackRock, Inc.(3) Interest in controlled 83,018,105 Long position 5.3%
corporations 12,800 Short position 0.0%
Class B ordinary shares
Simplicity Holding Limited(4) Beneficial interest 327,708,257 Long position 94.0%
Respect
Holding Limited(4) Beneficial interest 21,000,000 Long position 6.0%
Binghe Galaxy Limited(4) Interest in controlled 348,708,257 Long position 100.0%
corporations
Trident Trust Company (HK) Limited(5) Trustee 348,708,257 Long position
100.0%
100 XPeng Inc.
General Information
Notes:
As of June 30, 2025, the Company had 1,906,209,411 issued shares in total, comprising 1,557,501,154 Class A ordinary shares (including 2,664,944 Class A ordinary
shares issued to our depository bank for bulk issuance of ADSs and reserved for future issuance upon the exercise or vesting of awards granted under our 2019 Equity Incentive Plan) and 348,708,257 Class B ordinary shares.
On December 6, 2023, 94,079,255 Class A ordinary shares were issued by the Company to Volkswagen Finance Luxemburg S.A. pursuant to the VW Share Purchase Agreement.
Volkswagen Finance Luxemburg S.A. is wholly owned by Volkswagen AG, which is 53.35% owned by Porsche Automobil Holding SE, and Porsche Automobil Holding SE is controlled by Ferdinand Porsche Familien-Holding GmbH through various entities, and
Ferdinand Porsche Familien-Holding GmbH is 90% owned by Ferdinand Porsche Familien-Privatstiftung. Under the SFO, each of Volkswagen AG, Porsche Automobil Holding SE, Ferdinand Porsche Familien-Holding GmbH and Ferdinand Porsche
Familien-Privatstiftung is deemed to be interested in the Shares held by Volkswagen Finance Luxemburg S.A.
As of June 30, 2025, BlackRock, Inc. had long
position of 83,018,105 Class A ordinary shares and short position of 12,800 Class A ordinary shares through its various subsidiaries or entities controlled by it.
Simplicity Holding Limited and Respect Holding Limited are both wholly owned by Mr. Xiaopeng He (being the settlor) through Binghe Galaxy Limited under The Binghe Trust.
Trident Trust Company (HK) Limited was the trustee with respect to The Binghe Trust, which was interested in 348,708,257 Class B ordinary shares, and therefore
Trident Trust Company (HK) Limited was deemed to be interested in all such Shares.
Save as disclosed herein, there is no other person known to the Directors or
chief executive of the Company who, as of June 30, 2025, had an interest or short position in the Shares or underlying Shares which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 under Part XV of the SFO or
who is, directly or indirectly, interested in 5% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of the Company.
(5) MODEL CODE FOR SECURITIES TRANSACTIONS
The Company has adopted the Model Code as its code
of conduct regarding directors’ securities transactions. Having made specific enquiries to all of the Directors, all Directors confirmed that they have fully complied with all relevant requirements set out in the Model Code during the
Reporting Period.
(6) COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE
The
Company’s corporate governance practices are based on the principles and code provisions set forth in the Corporate Governance Code (the “CG Code”) contained in Appendix C1 to the Listing Rules.
Pursuant to code provision C.2.1 of part 2 of the CG Code as set out in Appendix C1 to the Listing Rules, companies listed on the Hong Kong Stock Exchange are expected to comply
with, but may choose to deviate from the requirement that the roles of chairman and chief executive officer should be separate and should not be performed
2 0 2 5 INTERIM REPORT 101
General Information
by the same individual. The Company does not have a separate role for
chairman and chief executive officer and Mr. Xiaopeng He currently performs these two roles. The Board believes that vesting the roles of both chairman and chief executive officer in the same person has the benefit of ensuring consistent
leadership within the Group and enables more effective and efficient overall strategic planning for the Group. The Board considers that the balance of power and authority for the present arrangement will not be impaired and this structure will
enable the Company to make and implement decisions promptly and effectively.
Other than the above, the Company has complied with the code provisions set out in
part 2 of the CG Code during the Reporting Period.
DISCLOSURE OF CHANGES IN DIRECTORS’ AND CHIEF EXECUTIVE’S INFORMATION PURSUANT TO RULE 13.51B(1) OF
THE LISTING RULES
Upon specific inquiry by the Company, there is no change in information for any of the Directors or chief executive which would require
disclosure pursuant to Rule 13.51B(1) of the Listing Rules during the Reporting Period and up to the Latest Practicable Date.
(8) USE OF NON-GAAP FINANCIAL
MEASURES
The Company uses non-GAAP measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders,
non-GAAP basic loss per weighted average number of ordinary shares and non-GAAP basic loss per ADS, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation
expenses and fair value loss (gain) on derivative liability relating to the contingent consideration, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of
the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and
operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have
limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in
accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial
measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
102 XPeng Inc.
General Information
UNAUDITED INTERIM RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
The
table below sets forth certain information in relation to the unaudited interim reconciliations of GAAP and Non-GAAP results.
For the Six Months Ended
June 30,
2025 2024
RMB RMB
Loss from operations(1,976,096)(3,255,029)
Fair value loss (gain) on derivative liability
relating to contingent consideration 84,225(191,793)
Share-based compensation expenses 246,503 216,017
Non-GAAP loss from operations(1,645,368)(3,230,805)
Net loss(1,141,800)(2,652,571)
Fair value loss (gain) on derivative liability relating to contingent consideration 84,225(191,793)
Share-based compensation expenses 246,503 216,017
Non-GAAP net loss(811,072)(2,628,347)
Net loss attributable to ordinary shareholders(1,141,800)(2,652,571)
Fair
value loss (gain) on derivative liability relating to contingent consideration 84,225(191,793)
Share-based compensation expenses 246,503 216,017
Non-GAAP net loss attributable to ordinary shareholders of XPeng Inc.(811,072)(2,628,347)
Weighted average number of ordinary shares used in
calculating
Non-GAAP net loss per share
Basic and diluted 1,900,912,109 1,886,710,018
Non-GAAP net loss per ordinary share
Basic and diluted(0.43)(1.39)
Weighted average number of ADS used in calculating
Non-GAAP net loss
per share
Basic and diluted 950,456,055 943,355,009
Non-GAAP net loss per ADS
Basic and diluted(0.85)(2.79)
2 0 2 5 INTERIM REPORT 103
General Information
(9) REVIEW OF INTERIM REPORT BY THE AUDIT COMMITTEE OF THE COMPANY
The Audit Committee of the Company comprises Mr. Donghao Yang (chairman), Mr. Ji-Xun Foo and Mr. HongJiang Zhang. Mr. Donghao Yang and
Mr. HongJiang Zhang are both independent non-executive Directors. The Audit Committee of the Company has reviewed the unaudited interim results and the interim report of the Group for the six months ended June 30, 2025.
REVIEW OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The unaudited interim
condensed consolidated financial statements, including reconciliation between U.S. GAAP and International Financial Reporting Standards, of the Group for the six months ended June 30, 2025 have been reviewed by the auditor of the Company,
PricewaterhouseCoopers, in accordance with Hong Kong Standard on Review Engagements 2410 — “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Hong Kong Institute of Certified
Public Accountants for the Hong Kong filing. The unaudited interim condensed consolidated financial statements of the Group for the six months ended June 30, 2025 have also been reviewed by the Audit Committee of the Company.
(11) WEIGHTED VOTING RIGHTS
The Company is controlled through weighted voting rights. Each
Class A ordinary share has one vote per Share and each Class B ordinary share has ten votes per Share except with respect to resolutions regarding a limited number of Reserved Matters, where each Share has one vote. The Company’s WVR
Structure enables the WVR Beneficiary to exercise voting control over the Company notwithstanding the WVR Beneficiary does not hold a majority economic interest in the share capital of the Company. This allows the Company to benefit from the
continuing vision and leadership of the WVR Beneficiary who controls the Company with a view to its long-term prospects and strategy.
Shareholders and prospective
investors are advised to be aware of the potential risks of investing in companies with WVR Structures, in particular that interests of the WVR Beneficiary may not necessarily always be aligned with those of the Shareholders as a whole, and that the
WVR Beneficiary will be in a position to exert significant influence over the affairs of the Company and the outcome of Shareholders’ resolutions, irrespective of how other Shareholders vote. Shareholders and prospective investors should make
the decision to invest in the Company only after due and careful consideration.
104 XPeng Inc.
General Information
The table below sets out the ownership and voting rights to be held by the
WVR Beneficiary as of the Latest Practicable Date:
Percentage of
voting
rights
(other than
with respect to
WVR Beneficiary Class of Shares Number of Shares Reserved Matters)
Mr. Xiaopeng He(1)
Class A ordinary shares 11,339,844 0.2%
Class B ordinary shares 348,708,257 69.1%
Note:
Representing (i) 1,000,000 Class A ordinary shares held by Mr. Xiaopeng
He, (ii) 2,839,844 Class A ordinary shares represented by ADSs and 3,100,000 Class A ordinary shares held through Galaxy Dynasty Limited, which is wholly-owned by Mr. Xiaopeng He, (iii) 4,400,000 Class A ordinary shares
represented by ADSs held through Simplicity Holding Limited and (iv) 327,708,257 Class B ordinary shares and 21,000,000 Class B ordinary shares held through Simplicity Holding Limited and Respect Holding Limited, respectively. Simplicity
Holding Limited and Respect Holding Limited are both wholly owned by Mr. Xiaopeng He (being the settlor) through Binghe Galaxy Limited under The Binghe Trust.
Class B ordinary shares may be converted into Class A ordinary shares on a one-to-one ratio. As of the Latest Practicable Date, upon the conversion of all the
issued and outstanding Class B ordinary shares into Class A ordinary shares, the Company will issue 348,708,257 Class A ordinary shares, representing approximately 22.4% of the total number of issued Class A ordinary shares (including
20,806 Class A ordinary shares issued to our depository bank for bulk issuance of ADSs and reserved for future issuance upon the exercise or vesting of awards granted under the 2019 Equity Incentive Plan) as of the Latest Practicable Date.
The weighted voting rights attached to our Class B ordinary shares will cease when no WVR Beneficiary has beneficial ownership of any of our Class B ordinary
shares, in accordance with Rule 8A.22 of the Listing Rules. This may occur:
upon the occurrence of any of the circumstances set out in Rule 8A.17 of the Listing
Rules, in particular where the WVR Beneficiary is: (1) deceased; (2) no longer a member of the Board; (3) deemed by the Hong Kong Stock Exchange to be incapacitated for the purpose of performing his duties as a director; or
(4) deemed by the Hong Kong Stock Exchange to no longer meet the requirements of a director set out in the Listing Rules;
when the holders of Class B ordinary
shares have transferred to another person of the beneficial ownership of, or economic interest in, all of the Class B ordinary shares or the voting rights attached to them, other than in the circumstances permitted by Rule 8A.18 of the Listing
Rules;
where a vehicle holding Class B ordinary shares on behalf of a WVR Beneficiary no longer complies with Rule 8A.18(2) of the Listing Rules; or
when all of the Class B ordinary shares have been converted to Class A ordinary shares.
2 0 2 5 INTERIM REPORT 105
General Information
(12) CORPORATE GOVERNANCE COMMITTEE
The Corporate Governance Committee consists of three members, namely Mr. Donghao Yang, Ms. Fang Qu and Mr. HongJiang Zhang, all of whom are independent non-executive
Directors. Mr. Donghao Yang is the chairman of the Corporate Governance Committee.
The charter of the Corporate Governance Committee is of no less exacting
terms than those set out in the CG Code and is in compliance with Rule 8A.30 of the Listing Rules.
The primary duties of the Corporate Governance Committee are to
ensure that the Company is operated and managed for the benefit of all Shareholders and to ensure the Company’s compliance with the Listing Rules and safeguards relating to the weighted voting rights structure of the Company.
The following matters are a summary of the work performed by the Corporate Governance Committee during the six months ended June 30, 2025.
reviewed and monitored the Company’s policies and practices on compliance with legal and regulatory requirements;
reviewed the Company’s compliance with the CG Code and the deviations from code provision C.2.1 of the CG Code and the Company’s disclosure for compliance with Chapter
8A of the Listing Rules;
reviewed and monitored the training and continuous professional development of Directors and senior management of the Company;
reviewed and monitored the code of conduct and compliance manual applicable to Directors and employees of the Company;
reviewed the remuneration and terms of engagement of the compliance adviser of the Company;
reviewed and monitored the management of conflicts of interests between the Company, a subsidiary of the Company and/or Shareholders (considered as a group) on one
hand and the WVR Beneficiary on the other;
reviewed and monitored all risks related to the WVR Structure, including connected transactions between the
Group/Shareholders on one hand and the WVR Beneficiary on the other;
reviewed and discussed matters related to the proposed re-election of the retiring Directors
at the annual general meeting of the Company;
sought to ensure effective and on-going communication between the Company and its Shareholders, particularly with
regards to the requirements of Rule 8A.35 of the Listing Rules; and
reported on the work of the Corporate Governance Committee covering all areas of its charter.
106 XPeng Inc.
General Information
In particular, the Corporate Governance Committee has confirmed to the
Board that it is of the view that the Company has adopted sufficient corporate governance measures to manage the potential conflict of interest between the Group and the WVR Beneficiary in order to ensure that the operations and management of the
Company are in the interests of the Shareholders as a whole. These measures include the Corporate Governance Committee ensuring that (i) any connected transactions are disclosed and dealt with in accordance with the requirements of the Listing
Rules, (ii) any Directors who have a conflict of interest abstained from voting on the relevant board resolution, and (iii) the compliance adviser is consulted on any matters related to transactions involving the WVR Beneficiary or a
potential conflict of interest between the Group and the WVR Beneficiary. The Corporate Governance Committee recommended the Board to continue the implementation of these measures and to periodically review their efficacy towards these objectives.
Having reviewed the remuneration and terms of engagement of the compliance adviser, the Corporate Governance Committee confirmed to the Board that it was not aware of any factors that would require it to consider either the removal of the current
compliance adviser or the appointment of a new compliance adviser. As a result, the Corporate Governance Committee recommended that the Board retain the services of the compliance adviser of the Company.
(13) 2019 EQUITY INCENTIVE PLAN
The 2019 Equity Incentive Plan was first adopted by the Board
on June 28, 2020 and was further amended and restated in June 2021. The purpose of the 2019 Equity Incentive Plan is to enable the Company to attract and retain the services of directors and employees considered essential to the success of the
Company and relevant member of the Group by providing additional incentives to promote the success of the Group as a whole.
The Company renewed on January 1,
2021 the maximum number of RSUs which may be granted under the 2019 Equity Incentive Plan to 63,192,227, which represented 4% of the total shares of the Company outstanding on December 31, 2020 and equal number of underlying Class A
ordinary shares.
On March 18, 2025, the Board adopted the 2025 Share Incentive Scheme and on June 27, 2025, the Shareholders approved the 2025 Share
Incentive Scheme. Upon the effectiveness of the 2025 Share Incentive Scheme on June 27, 2025, the 2019 Equity Incentive Plan will be discontinued so that no further grant will be made under the 2019 Equity Incentive Plan. For the avoidance of
doubt, all restricted share units granted under the 2019 Equity Incentive Plan before the effectiveness of the 2025 Share Incentive Scheme will remain valid and be able to be vested, lapsed and cancelled pursuant to the terms and conditions of the
2019 Equity Incentive Plan.
Details of the Outstanding RSUs Granted under the 2019 Equity Incentive Plan
As of June 30, 2025, the aggregate number of Class A ordinary shares subject to the outstanding RSUs granted under the 2019 Equity Incentive Plan amounted to 27,401,759,
representing approximately 1.4% of the total issued and outstanding Shares of the Company as of June 30, 2025.
The table below shows the details of the
outstanding RSUs granted under the 2019 Equity Incentive Plan during the Reporting Period, except for which, no RSUs had been granted to the (i) Directors, chief executive or substantial shareholders of the Company, or their respective
associates; or (ii) participant with options and awards granted and
2 0 2 5 INTERIM REPORT 107
General Information
to be granted in excess of the 1% individual limit; or (iii) related
entity participant or service provider with options and awards granted and to be granted in any 12-month period exceeding 0.1% of the relevant class of Shares in issue (excluding treasury shares, if any), during the Reporting Period.
Number of Number of Number of Number of
Number of RSUs RSUs RSUs RSUs Number of Purchase
RSUs granted during vested during lapsed during cancelled during RSUs price of
unvested as of the Reporting the Reporting the Reporting the Reporting unvested as of RSUs
Grantees January 1, 2025 Period Period Period Period June 30, 2025 granted
Director
Donghao Yang 27,216(1)(6)(7) 0 0 0 0 27,216 (1)(6)(7) nil
Employees and
other grantees(5) 29,273,745(2)(6)(7) 5,121,904(3)(6)(7) 4,366,746(4) 2,654,360 0 27,374,543(2)(6)(7) nil
Total 29,300,961 5,121,904 4,366,746 2,654,360 0 27,401,759 nil
Notes:
The grant date of the RSUs unvested as of January 1, 2025 was July 12, 2024. The grant date of the RSUs unvested as of June 30, 2025 was July 12, 2024.
The grant dates of the RSUs unvested as of January 1, 2025 were from January 9, 2021 to October 18, 2024. The grant date of the RSUs unvested as of
June 30, 2025 were from July 7, 2021 to April 11, 2025.
The grant dates were from January 17, 2025 to April 11, 2025. The closing prices
of the Class A ordinary shares immediately before the dates of grants were from HK$53.60 to HK$71.20. Please see Notes 2(x) and 23 to the unaudited condensed consolidated financial statements for details on the fair value, accounting standard
and policy adopted for the calculation of the fair value of the underlying Class A ordinary shares.
The weighted average closing price of the Class A
ordinary shares immediately before the dates on which the RSUs were vested were from HK$46.75 to HK$78.18.
Other grantees were former employees of the Group.
The exercise period of the RSUs granted shall commence from the date on which the relevant RSUs become vested and ended on the date the grantees are terminated for
cause, subject to the terms of the 2019 Equity Incentive Plan and the award agreement signed by the grantees.
Subject to the terms and conditions of the 2019
Equity Incentive Plan and the award agreements entered into between the Company and each of the grantees, the vesting schedules include: (i) 25% of the RSUs shall become service-vested on each of the annual anniversary of the vesting
commencement date for a period of four (4) years after the grant; (ii) 25% of the RSUs shall become service-vested on a specific date or on the first anniversary of the vesting commencement date, and the remaining 75% of RSUs shall become
service-vested in equal installments on each quarterly anniversary for a period of three (3) years thereafter; (iii) nil, nil, 50% and 50% of the RSUs shall become service-vested on each of the annual anniversary of the vesting
commencement date for a period of four (4) years after the grant; and (iv) all of the RSUs shall become service?vested on the first annual anniversary of the vesting commencement date.
As at the beginning of the Reporting Period, 24,541,589 RSUs (representing equal number of underlying Class A ordinary shares) may be further granted under the 2019 Equity
Incentive Plan. As at the end of the Reporting Period, there was no RSUs that may be further granted under the 2019 Equity Incentive Plan.
(14) 2025 SHARE
INCENTIVE SCHEME
The 2025 Share Incentive Scheme was adopted by the Board on March 18, 2025 and approved by the Shareholders on June 27, 2025. The
purpose of the 2025 Share Incentive Scheme is to reward eligible participants who have contributed or will contribute to the Group, and to encourage eligible participants to work towards enhancing the value of the Company and its Shares for the
benefit of the Company and its Shareholders as a whole.
108 XPeng Inc.
General Information
As of June 30, 2025, the aggregate number of Class A ordinary
shares subject to the outstanding RSUs granted under the 2025 Share Incentive Scheme amounted to 28,506,786, representing approximately 1.5% of the total issued and outstanding Shares of the Company as of June 30, 2025. All of the outstanding
RSUs granted under the 2025 Share Incentive Scheme were conditionally granted to Mr. Xiaopeng He on March 19, 2025 and approved by the independent Shareholders at the general meeting of the Company held on June 27, 2025.
The table below shows the details of the outstanding awards granted under the 2025 Share Incentive Scheme during the Reporting Period, except for which, no awards had been granted
to the (i) Directors, chief executive or substantial shareholders of the Company, or their respective associates; or (ii) participant with options and awards granted and to be granted in excess of the 1% individual limit; or
(iii) related entity participant or service provider with options and awards granted and to be granted in any 12-month period exceeding 0.1% of the relevant class of Shares in issue (excluding treasury shares, if any), during the Reporting
Period.
Number of Number of Number of Number of
Number of RSUs RSUs RSUs RSUs
Number of Purchase
RSUs granted during vested during lapsed during cancelled during RSUs price of
unvested as of the Reporting the Reporting the Reporting the Reporting unvested as of RSUs
Grantees January 1, 2025 Period Period Period Period June 30, 2025 granted
Director
Xiaopeng He 0 28,506,786(1)(2) 0 0 0 28,506,786 nil
Total 0 28,506,786 0 0 0 28,506,786 nil
Notes:
The closing price of the Class A ordinary shares immediately before the date of grant was HK$95.1. Please see Notes 2(x) and 23 to the unaudited condensed consolidated
financial statements for details on the fair value, accounting standard and policy adopted for the calculation of the fair value of the underlying Class A ordinary shares.
The RSUs granted to Mr. Xiaopeng He shall vest after the 12 months vesting period upon the satisfaction of certain performance targets as detailed in the announcement of the
Company dated March 19, 2025.
The total number of Class A ordinary shares which may be issued in respect of all awards to be granted under the 2025 Share
Incentive Scheme and any other share schemes or plans of the Company, shall not in aggregate exceed 10% of the total number of Shares (including the Class A ordinary shares and Class B ordinary shares) in issue (excluding treasury shares) as at
the date on which the 2025 Share Incentive Scheme is approved by the Shareholders.
As at the end of the Reporting Period, the number of Class A ordinary
shares available for future grant under the scheme mandate limit and the service provider sublimit of the 2025 Share Incentive Scheme is 162,114,155 and 9,531,047, respectively, representing approximately 8.5% and 0.5% of the total issued and
outstanding Shares of the Company, respectively.
2 0 2 5 INTERIM REPORT 109
General Information
The number of Class A ordinary shares that may be issued in respect
of RSUs (excluding the RSUs lapsed and cancelled during the Reporting Period) granted under 2019 Equity Incentive Plan and the 2025 Share Incentive Scheme during the Reporting Period divided by the weighted average number of Class A ordinary
shares in issue (excluding treasury shares, if any) for the six months ended June 30, 2025 was 2.2%.
(15) IMPORTANT EVENTS AFTER THE REPORTING PERIOD
Save as disclosed in this report, no important events affecting the Group occurred since June 30, 2025 and up to the Latest Practicable Date.
(16) SUFFICIENCY OF PUBLIC FLOAT
Based on the information publicly available to the Company
and to the knowledge of the Directors, from the Listing Date to the Latest Practicable Date, the Company has maintained sufficient public float as required by the Listing Rules.
FUND RAISING ACTIVITIES
Listing on the NYSE and Follow-on Offering
Listing on the NYSE
In August 2020, the Company completed the initial public offering and was
listed on the NYSE (the “Listing on the NYSE”) in which it offered and sold an aggregate 114,693,333 ADSs, representing 229,386,666 Class A ordinary shares with the offer price of US$15.00 per ADS, raising a total of US$1,655.7
million in net proceeds after deducting underwriting discounts commissions and expenses. The net proceeds from the Listing on the NYSE have been and will be utilized in accordance with the purposes set out in the prospectus disclosed on the website
of the SEC dated August 28, 2020 as follows:
50% of the net proceeds for research and development of our Smart EVs and technologies;
30% of the net proceeds for selling and marketing and expansion of sales channels; and
20% of
the net proceeds for general corporate purposes, including working capital needs.
There has been no change in the intended use of net proceeds disclosed as above,
and the Company had fully utilized the net proceeds in accordance with such intended purposes depending on actual business needs.
110 XPeng Inc.
General Information
Net proceeds from Follow-on Offering
In December 2020, the Company completed its follow-on public offering on the NYSE (the “Follow-on Offering”) in which the Company offered and sold an aggregate
55,200,000 ADSs, representing 110,400,000 Class A ordinary shares with the offer price of US$45.00 per ADS, raising a total of US$2,444.9 million in net proceeds after deducting underwriting discounts, commissions and expenses. The net proceeds
from the Follow-on Offering will be utilized in accordance with the purposes set out in the prospectus disclosed on the website of the SEC dated December 10, 2020. as follows:
30% of the net proceeds for research and development of our Smart EVs and software, hardware and data technologies;
30% of the net proceeds for sales and marketing and expansion of sales and service channels and super charging network, as well as the expansion of our footprints in the
international markets;
20% of the net proceeds for potential strategic investments in core technologies of Smart EV; and
20% of the net proceeds for general corporate purposes, including working capital needs.
There
has been no change in the intended use of net proceeds disclosed as above, and the Company had fully utilized the net proceeds from the Follow-on Offering in accordance with the aforementioned intended purposes.
Initial Public Offering on the Hong Kong Stock Exchange
On July 7, 2021, the Company
successfully listed its Class A ordinary shares on the Main Board of the Hong Kong Stock Exchange. The Company issued a total of 97,083,300 Class A ordinary shares with the offer price of HK$165.00 per share (exclusive of brokerage of 1%,
SFC transaction levy of 0.0027% and Hong Kong Stock Exchange trading fee of 0.005%) in the Global Offering. Net proceeds from the Global Offering, after deducting underwriting discounts and commissions, including the partial exercise of the
over-allotment option, were approximately HK$15,823.3 million. As of the Latest Practicable Date, there has been no change in the intended use of net proceeds as previously disclosed in the section headed “Future Plans and Use of
Proceeds” in the Prospectus. The Company expects to fully utilize the residual amount of the net proceeds in accordance with such intended purposes within 1 year.
2 0 2 5 INTERIM REPORT 111
General Information
As of June 30, 2025, the Group had utilized the net proceeds from the
Global Offering as set out in the table below:
Utilized Unutilized
% of
Unutilized amount for the amount
use of amount as at six months ended as at
proceed Net proceeds December 31, 2024 June 30, 2025 June 30, 2025
(HK$ million)(HK$ million)(HK$ million)(HK$ million)
Research and development
of developing software technology 15% 2,373.5 — — —
Research and
development of new
models and improving hardware
technology
20% 3,164.6 — — —
Research and development of other
technology investments 10% 1,582.3 — — —
Enhancement for brand recognition
through the following marketing
strategies in order to promote the
sale of our Smart EVs 10% 1,582.3 — — —
Broadening of sales,
services, and super
charging network, as well as to
improve
the skills and service quality
of our sales and marketing personnel
with better customer services 20% 3,164.6 — — —
Strategic building and expansion of
presence in international
markets,
starting with certain European
markets.
Specifically, (a) open sales
stores in select countries to enhance
brand recognition and improve
customer reach internationally;
and (b) enhance marketing efforts to
promote our brand
and develop
potential customer base 5% 791.2 289.0 253.4 35.6
Enhancement of production capability,
including expansion of
capacity,
upgrade of manufacturing facilities
and development
of manufacturing
technologies 10% 1,582.3 — — —
112 XPeng Inc.
General Information
Utilized Unutilized
% of Unutilized amount for the amount
use of amount as at six months ended as at
proceed Net proceeds December 31, 2024 June 30, 2025 June 30, 2025
(HK$ million)(HK$ million)(HK$ million)(HK$ million)
Working capital and
other general
corporate purposes to support our
business operation and growth
in the
next 12 months 10% 1,582.3 — — —
Total 100%
15,823.0 289.0 253.4 35.6
(18) APPRECIATION
The Group would like to express
its appreciation to all the staff for their outstanding contribution towards the Group’s development. The Board wishes to sincerely thank the management for their dedication and diligence, which are the key factors for the Group to continue
its success in the future. Also, the Group wishes to extend its gratitude for the continued support from its shareholders, customers, and business partners. The Group will continue to deliver sustainable business development, so as to create more
values for all shareholders.
(19) SAFE HARBOR STATEMENT
This interim report
contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology
such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Statements that are not
historical facts, including statements about XPENG’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ
materially from those contained in any forward-looking statement, including but not limited to the following: XPENG’s goal and strategies; XPENG’s expansion plans; XPENG’s future business development, financial condition and
results of operations; the trends in, and size of, China’s EV market; XPENG’s expectations regarding demand for, and market acceptance of, its products and services; XPENG’s expectations regarding its relationships with customers,
contract manufacturer, suppliers, third-party service providers, strategic partners and other stakeholders; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these
and other risks is included in XPENG’s filings with the SEC. All information provided in this report is as of the Latest Practicable Date, and XPENG does not undertake any obligation to update any forward-looking statement, except as required
under applicable law.
DIRECTORS
Executive Director
Xiaopeng He (何小鵬) (Chairman of the Board and
Chief Executive Officer)
Non-Executive Director
Ji-Xun Foo (符績勳)
Independent Non-Executive
Directors
Donghao Yang (楊東皓)
Fang Qu (瞿芳)
HongJiang Zhang (張宏江)
AUDIT COMMITTEE
Donghao Yang (楊東皓) (Chairperson)
Ji-Xun Foo (符績勳)
HongJiang Zhang (張宏江)
COMPENSATION COMMITTEE
Fang Qu (瞿芳) (Chairperson)
Xiaopeng He (何小鵬)
HongJiang Zhang (張宏江)
NOMINATION COMMITTEE
HongJiang Zhang (張宏江) (Chairperson)
Xiaopeng He (何小鵬)
Fang Qu (瞿芳)
2 0 2 5 INTERIM REPORT 113
Corporate Information
CORPORATE GOVERNANCE COMMITTEE
Donghao Yang (楊東皓) (Chairperson)
Fang Qu (瞿芳)
HongJiang Zhang (張宏江)
COMPANY SECRETARY
Yeqing Zheng (鄭葉青)
AUTHORISED REPRESENTATIVES
Xiaopeng He (何小鵬)
Yeqing Zheng (鄭葉青)
CORPORATE HEADQUARTERS
No. 8 Songgang Road
Changxing Street, Cencun
Tianhe District
Guangzhou
PRC
REGISTERED OFFICE IN CAYMAN ISLANDS
Harneys Fiduciary (Cayman) Limited 4th Floor, Harbour Place
103 South Church Street P.O. Box
10240
Grand Cayman KY1-1002 Cayman Islands
114 XPeng Inc.
Corporate Information
PRINCIPAL PLACE OF BUSINESS IN HONG KONG
Room 1918, 19/F
Lee Garden One
33 Hysan Avenue
Causeway Bay
Hong Kong
PRINCIPAL SHARE REGISTRAR
Harneys Fiduciary (Cayman) Limited 4th Floor, Harbour Place
103 South Church Street P.O. Box
10240
Grand Cayman KY1-1002 Cayman Islands
HONG KONG BRANCH SHARE REGISTRAR
Tricor Investor Services Limited
17/F, Far East Finance Centre
16 Harcourt Road
Hong Kong
COMPLIANCE ADVISER
Guotai Junan Capital Limited
27/F, Low Block, Grand Millennium Plaza
181 Queen’s Road Central
Hong Kong
AUDITOR AND REPORTING ACCOUNTANTS
PricewaterhouseCoopers
Certified Public Accountants
Registered Public Interest Entity Auditor
22/F, Prince’s Building
Central
Hong Kong
LEGAL ADVISERS TO THE COMPANY
As to Hong Kong law:
Freshfields
55th Floor, One Island East Taikoo Place
Quarry Bay
Hong Kong
As to U.S. law:
Sullivan & Cromwell (Hong Kong) LLP 20/F, Alexandra House,
18 Chater Road Central
Hong Kong
As to PRC laws:
Fangda Partners
27/F North Tower Beijing Kerry Centre 1 Guanghua Road
Chaoyang District Beijing
PRC
As to Cayman Islands laws:
Harney Westwood & Riegels 3501 The Center
99 Queen’s Road Central Central
Hong Kong
STOCK SHORT NAME
XPENG — W
STOCK EXCHANGE STOCK CODE
9868
NYSE SYMBOL
XPEV
COMPANY WEBSITE
www.xiaopeng.com
2 0 2 5 INTERIM REPORT115
In this interim report, the following expressions have the meanings set out below unless the context requires otherwise.
“2019 Equity Incentive Plan” the equity incentive plan approved and adopted in June 2020, as amended and
restated in August 2020 and June 2021
“2025 Share Incentive Scheme” the share
incentive scheme adopted by the Board on March 18, 2025 and
approved by the Shareholders on June 27, 2025
“ADSs” American depositary shares, each of which represents two Class A ordinary
shares
“Articles of Association” the articles of association of
our Company adopted on August 20, 2020, as
amended and restated in June 2023 and as amended from time to time
“Board” the board of Directors of the Company
“Class A ordinary
shares” Class A ordinary shares of the share capital of the Company with a par value of
US$0.00001 each, conferring a holder of a Class A ordinary share one
vote per
share on all matters subject to the vote at general meetings of the Company
“Class B ordinary shares” Class B ordinary shares of the share capital of the Company with a par value of
US$0.00001 each, conferring weighted voting rights in the Company such that
a holder of a
Class B ordinary share is entitled to ten votes per share on all
matters subject to the vote at general meetings of the Company, subject to the
requirements under Rule 8A.24 of the Listing Rules that the Reserved Matters
shall be voted on
a one vote per share basis
“Company”, “our Company”,
“the Company” or “XPeng” or “XPENG”
XPeng
Inc., a company controlled through weighted voting rights and
incorporated in the Cayman Islands with limited liability, the Class A ordinary
shares of which are listed on the Main Board of the Hong Kong Stock Exchange
and the ADSs of
which are listed on NYSE
116 XPeng Inc.
Definitions
“Director(s)”
“EV” or “electric vehicle”
“Global Offering”
“Group”, “the Group”, “our Group”, “we”, “our” or “us”
“HK$” or “Hong Kong dollars”
“Hong Kong”
“Hong Kong Stock Exchange” or “Stock Exchange”
“Latest
Practicable Date”
“Listing on the Hong Kong Stock Exchange”
“Listing Rules”
“Memorandum”
“Model Code”
the director(s) of the Company
the battery electric vehicle used for the carriage of passengers
the global offering comprises
the Hong Kong public offering of 4,250,000 Class A ordinary shares as well as the international offering of 80,750,000 Class A ordinary shares initially available for subscription and 12,083,300 Class A ordinary shares pursuant to the
partial exercise of the over-allotment option
the Company and its subsidiaries and consolidated variable interest entities from time to time or, where the context
so requires, in respect of the period prior to our Company becoming the holding company of its present subsidiaries, such subsidiaries as if they were subsidiaries of our Company at the relevant time
Hong Kong dollars, the lawful currency of Hong Kong
the Hong Kong Special Administrative
Region of the PRC
The Stock Exchange of Hong Kong Limited
September 17,
2025, being the latest practicable date for ascertaining the contents set out in this report
the listing of the Class A ordinary shares on the Main Board of
the Hong Kong Stock Exchange
the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
our memorandum of association (as amended from time to time), the current form of which was adopted on August 20, 2020 and amended and restated in June 2023
the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules
“NYSE” New York Stock Exchange
2 0 2 5 INTERIM REPORT 117
Definitions
“PRC”, “China” or “Mainland China” the
People’s Republic of China, but for the purposes of this interim report only,
except where the context requires, references in this interim report to PRC,
China or Mainland China exclude Hong Kong, Macau and Taiwan
“Prospectus” the prospectus of the Company published on the website of the Hong Kong
Stock Exchange on June 25, 2021
“Reporting Period” the six months ended
June 30, 2025
“Reserved Matters” those matters resolutions with respect to which each Share is entitled to
one vote at general meetings of our Company pursuant to Rule 8A.24 of the
Listing Rules,
being: (i) any amendment to the Memorandum and Articles of
Association, (ii) the variation of the rights attached to any class of Shares,
(iii) the appointment or removal of an independent non-executive Director,
(iv) the
appointment or removal of the Company’s auditors, and (v) the voluntary
winding-up of our Company
“RMB” Renminbi, the lawful currency of the PRC
“RSU(s)” restricted
share units
“SEC” the Securities and Exchange Commission of the United States
“SFC” the Securities and Futures Commission of Hong Kong
“SFO” the
Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong),
as amended or supplemented from time to time
“Share(s)” the Class A ordinary shares and Class B ordinary shares in the share capital of
the Company, as the context so requires
“Shareholder(s)” holder(s) of Shares and,
where the context requires, ADSs
“Smart EV” electric vehicles with a rich array of connectivity, advanced driver assistance
systems and smart technology features
“substantial shareholder(s)” has the meaning
ascribed to it under the Listing Rules
“U.S.” or “United States” the United States of America, its territories and possessions, any state
of the
United States and the District of Columbia
118 XPeng Inc.
Definitions
“U.S. GAAP” accounting principles generally accepted in the United
States
“US$” U.S. Dollars, the lawful currency of the U.S.
“WVR Beneficiary” has the meaning ascribed to it under the Listing Rules and unless the context
otherwise requires, refers to Mr. Xiaopeng He, being the holder of the Class B
ordinary
shares upon Listing on the Hong Kong Stock Exchange, entitling him to
weighted voting rights
“WVR Structure(s)” has the meaning ascribed to it under the Listing Rules
“%” per cent
In this interim report, if there is any
inconsistency between the Chinese names of the entities, authorities, organisations, institutions or enterprises established in China or the awards or certificate given in China and their English translations, the Chinese version shall prevail.
