Xpeng (XPEV)

EX-99.1 2 d75446dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 XPENG Reports Second Quarter 2026 Unaudited Financial Results Cash positioni was RMB40.48 billion (US$5.97 billion) as of June 30, 2026 Quarterly total revenues were RMB19.74 billion, a 51.5% increase quarter-over-quarter Quarterly gross margin was 20.7%, an increase of 3.4 percentage points over the same period of 2025 Quarterly vehicle margin was 12.1%, remained relatively stable quarter-over-quarter GUANGZHOU, China, August 24, 2026 XPeng Inc. ( XPENG or the Company, NYSE: XPEV and HKEX: 9868), a leading global Physical AI company, today announced its unaudited financial results for the three months ended June 30, 2026. Operational and Financial Highlights for the Three Months Ended June 30, 2026 2026Q2 2026Q1 2025Q4 2025Q3 2025Q2 2025Q1 Total deliveries 103,295 62,682 116,249 116,007 103,181 94,008 Total deliveries of vehicles were 103,295 for the second quarter of 2026, representing an increase of 0.1% from 103,181 in the corresponding period of 2025. XPENG s physical sales network had a total of 740 stores, covering 257 cities as of June 30, 2026. i Cash position includes cash and cash equivalents, restricted cash, short-term investments and time deposits. 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. 1 XPENG self-operated charging station network reached 3,780 stations, including 2,720 XPENG ultra-fast charging stations as of June 30, 2026. Total revenues were RMB19.74 billion (US$2.91 billion) for the second quarter of 2026, representing an increase of 8.0% from the same period of 2025, and an increase of 51.5% from the first quarter of 2026. Revenues from vehicle sales were RMB17.05 billion (US$2.51 billion) for the second quarter of 2026, representing an increase of 1.0% from the same period of 2025, and an increase of 55.0% from the first quarter of 2026. Gross margin was 20.7% for the second quarter of 2026, compared with 17.3% for the same period of 2025 and 20.6% for the first quarter of 2026. Vehicle margin, which is gross profit of vehicle sales as a percentage of vehicle sales revenue, was 12.1% for the second quarter of 2026, compared with 14.3% for the same period of 2025 and 12.1% for the first quarter of 2026. Net loss was RMB1.34 billion (US$0.20 billion) for the second quarter of 2026, compared with a loss of RMB0.48 billion for the same period of 2025 and a loss of RMB1.78 billion for the first quarter of 2026. Excluding share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, non-GAAP net loss was RMB1.24 billion (US$0.18 billion) for the second quarter of 2026, compared with a loss of RMB0.39 billion for the same period of 2025 and a loss of RMB1.69 billion for the first quarter of 2026. Net loss attributable to ordinary shareholders of XPENG was RMB1.34 billion (US$0.20 billion) for the second quarter of 2026, compared with a loss of RMB0.48 billion for the same period of 2025 and a loss of RMB1.78 billion for the first quarter of 2026. Excluding share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, non-GAAP net loss attributable to ordinary shareholders of XPENG was RMB1.24 billion (US$0.18 billion) for the second quarter of 2026, compared with a loss of RMB0.39 billion for the same period of 2025 and a loss of RMB1.69 billion for the first quarter of 2026. Basic and diluted net loss per American depositary share (ADS) were both RMB1.40 (US$0.21) and basic and diluted net loss per ordinary share were both RMB0.70 (US$0.10) for the second quarter of 2026. Each ADS represents two Class A ordinary shares. Non-GAAP basic and diluted net loss per ADS were both RMB1.29 (US$0.19), and non-GAAP basic and diluted net loss per ordinary share were both RMB0.65 (US$0.10) for the second quarter of 2026. Cash position was RMB40.48 billion (US$5.97 billion) as of June 30, 2026, compared with RMB42.09 billion as of March 31, 2026. 2 Key Financial Results (in RMB billions, except for percentages) For the Three Months Ended % Changeii June 30, 2026 March 31, 2026 June 30, 2025 YoY QoQ Vehicle sales 17.05 11.00 16.88 1.0 % 55.0 % Vehicle margin 12.1 % 12.1 % 14.3 % -2.2 pts 0.0 pts Total revenues 19.74 13.03 18.27 8.0 % 51.5 % Gross profit 4.08 2.68 3.17 28.9 % 52.2 % Gross margin 20.7 % 20.6 % 17.3 % 3.4 pts 0.1 pts Net loss 1.34 1.78 0.48 179.9 % -25.1 % Non-GAAP net loss 1.24 1.69 0.39 221.1 % -26.6 % Net loss attributable to ordinary shareholders 1.34 1.78 0.48 179.9 % -25.1 % Non-GAAP net loss attributable to ordinary shareholders 1.24 1.69 0.39 221.1 % -26.6 % Comprehensive loss attributable to ordinary shareholders 1.60 2.06 0.49 223.4 % -22.4 % ii Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented. Management Commentary The back-to-back success of the GX and MONA L03 gives us greater confidence in our upcoming new models, as we translate our leading edge in smart technologies and design into more blockbuster products and stronger brand momentum, said Mr. Xiaopeng He, Chairman and CEO of XPENG. The development of the mass-production version of XPENG s humanoid robot has recently reached several significant milestones. I believe XPENG will not only build one of China s most valuable humanoid robotics companies, but also become a global leader in physical AI, spearheading the large-scale adoption and commercialization of advanced general-purpose humanoid robots and autonomous driving technologies in China and overseas. During the second quarter of 2026, our operations remained resilient despite industry-wide cost pressures. Driven by breakthroughs in our premiumization and globalization efforts, our gross margin continued to exceed 20%, added Dr. Hongdi Brian Gu, Vice Chairman and Co-President of XPENG. I expect the mass production and commercialization of physical AI technologies to accelerate over the coming year, generating meaningful gross profit growth to support our continued R&D investment in physical AI. 3 Recent Developments Deliveries in July 2026 Total deliveries were 38,027 vehicles in July 2026. As of July 31, 2026, year-to-date total deliveries were 204,004 vehicles. Launch of MONA L03 On July 16, 2026, XPENG held the global launch event of MONA L03, the Next-Gen AI SUV Coupe, in Munich, Germany. Entering into the Dogotix Share Purchase Agreement On August 24, 2026, Dogotix Inc. (a subsidiary of the Company) entered into a share purchase agreement (the Dogotix Share Purchase Agreement ) with, among others, certain subscribers, pursuant to which such subscribers conditionally agreed to subscribe for certain shares to be newly issued by Dogotix Inc. at an aggregate purchase price of US$900 million. For details, please refer to the announcement of the Company dated August 24, 2026, in relation to, among others, the Dogotix Share Purchase Agreement. Unaudited Financial Results for the Three Months Ended June 30, 2026 Total revenues were RMB19.74 billion (US$2.91 billion) for the second quarter of 2026, representing an increase of 8.0% from RMB18.27 billion for the same period of 2025 and an increase of 51.5% from RMB13.03 billion for the first quarter of 2026. Revenues from vehicle sales were RMB17.05 billion (US$2.51 billion) for the second quarter of 2026, representing an increase of 1.0% from RMB16.88 billion for the same period of 2025, and an increase of 55.0% from RMB11.00 billion for the first quarter of 2026. The quarter-over-quarter increase was mainly attributable to higher vehicle deliveries. Revenues from services and others were RMB2.70 billion (US$0.40 billion) for the second quarter of 2026, representing an increase of 93.9% from RMB1.39 billion for the same period of 2025 and an increase of 32.6% from RMB2.03 billion for the first quarter of 2026. The year-over-year and quarter-over-quarter increases were primarily attributable to increased revenues from (i) technical research and development services ( technical R&D services ) rendered to a car manufacturer (the Manufacturer ) with the successful achievement of certain key milestones in the current period, under the agreement entered into with the Manufacturer; and (ii) parts and accessories sales. Cost of sales was RMB15.66 billion (US$2.31 billion) for the second quarter of 2026, representing an increase of 3.7% from RMB15.11 billion for the same period of 2025 and an increase of 51.3% from RMB10.35 billion for the first quarter of 2026. The quarter-over-quarter increase was mainly in line with vehicle deliveries as described above. 4 Gross margin was 20.7% for the second quarter of 2026, compared with 17.3% for the same period of 2025 and 20.6% for the first quarter of 2026. Vehicle margin was 12.1% for the second quarter of 2026, compared with 14.3% for the same period of 2025 and 12.1% for the first quarter of 2026. The year-over-year decrease was due to product generation transition. Services and others margin was 75.1% for the second quarter of 2026, compared with 53.6% for the same period of 2025 and 66.5% for the first quarter of 2026. The year-over-year and quarter-over-quarter increases were attributable to the aforementioned revenue from technical R&D services and parts and accessories sales. Research and development expenses were RMB2.91 billion (US$0.43 billion) for the second quarter of 2026, representing an increase of 32.1% from RMB2.21 billion for the same period of 2025 and an increase of 0.3% from RMB2.91 billion for the first quarter of 2026. The year-over-year increase was mainly due to higher expenses related to the development of new vehicle models and AI-related technologies as the Company expanded its product portfolio to support future growth. Selling, general and administrative expenses were RMB2.50 billion (US$0.37 billion) for the second quarter of 2026, representing an increase of 15.2% from RMB2.17 billion for the same period of 2025 and an increase of 32.5% from RMB1.88 billion for the first quarter of 2026. The year-over-year increase was primarily due to higher marketing and advertising expenses. The quarter-over-quarter increase was primarily due to the higher commission to the franchised stores and higher marketing and advertising expenses. Other income, net was RMB0.14 billion (US$0.02 billion) for the second quarter of 2026, representing a decrease of 42.2% from RMB0.24 billion for the same period of 2025 and a decrease of 24.7% from RMB0.18 billion for the first quarter of 2026. The year-over-year and quarter-over-quarter decreases were primarily due to the decrease in receipt of government subsidies. Fair value gain on derivative liability relating to the contingent consideration was a gain of RMB0.05 billion (US$0.01 billion) for the second quarter of 2026, compared with a gain of RMB0.03 billion for the same period of 2025 and a gain of RMB0.05 billion for the first quarter of 2026. This non-cash 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 RMB1.14 billion (US$0.17 billion) for the second quarter of 2026, compared with RMB0.93 billion for the same period of 2025 and RMB1.87 billion for the first quarter of 2026. Non-GAAP loss from operations, which excludes share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, was RMB1.04 billion (US$0.15 billion) for the second quarter of 2026, compared with a loss of RMB0.84 billion for the same period of 2025 and a loss of RMB1.78 billion for the first quarter of 2026. 5 Net loss was RMB1.34 billion (US$0.20 billion) for the second quarter of 2026, compared with a loss of RMB0.48 billion for the same period of 2025 and a loss of RMB1.78 billion for the first quarter of 2026. Non-GAAP net loss, which excludes share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, was RMB1.24 billion (US$0.18 billion) for the second quarter of 2026, compared with a loss of RMB0.39 billion for the same period of 2025 and a loss of RMB1.69 billion for the first quarter of 2026. Net loss attributable to ordinary shareholders of XPENG was RMB1.34 billion (US$0.20 billion) for the second quarter of 2026, compared with a loss of RMB0.48 billion for the same period of 2025 and a loss of RMB1.78 billion for the first quarter of 2026. Non-GAAP net loss attributable to ordinary shareholders of XPENG, which excludes share-based compensation expenses and fair value gain on derivative liability relating to the contingent consideration, was RMB1.24 billion (US$0.18 billion) for the second quarter of 2026, compared with a loss of RMB0.39 billion for the same period of 2025 and a loss of RMB1.69 billion for the first quarter of 2026. Basic and diluted net loss per ADS were both RMB1.40 (US$0.21) for the second quarter of 2026, compared with RMB0.50 basic and diluted net loss per ADS for the second quarter of 2025 and RMB1.87 basic and diluted net loss per ADS for the first quarter of 2026. Non-GAAP basic and diluted net loss per ADS were both RMB1.29 (US$0.19) for the second quarter of 2026, compared with RMB0.41 non-GAAP basic and diluted net loss per ADS for the second quarter of 2025 and RMB1.76 non-GAAP basic and diluted net loss per ADS for the first quarter of 2026. Balance Sheets As of June 30, 2026, the Company had a cash position of RMB40.48 billion (US$5.97 billion), compared with RMB42.09 billion as of March 31, 2026. Business Outlook For the third quarter of 2026, the Company expects: Deliveries of vehicles to be between 115,000 and 121,000, representing a year-over-year change of approximately -0.87% to +4.30%, and a quarter-over-quarter increase of approximately 11.33% to 17.14%. Total revenues to be between RMB21.7 billion and RMB23.4 billion, representing a year-over-year increase of approximately 6.47% to 14.81%, and a quarter-over-quarter increase of approximately 9.91% to 18.52%. The above outlook is based on the current market conditions and reflects the Company s preliminary estimates of market and operating conditions, and customer demand, which are all subject to change. 6 Conference Call The Company s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on August 24, 2026 (8:00 PM Beijing/Hong Kong Time on August 24, 2026). For participants who wish to join the call by phone, please access the link provided below to complete the pre-registration process and dial in 5 minutes prior to the scheduled call start time. Upon registration, each participant will receive dial-in details to join the conference call. Event Title: XPENG Second Quarter 2026 Earnings Conference Call Pre-registration link: https://s1.c-conf.com/diamondpass/10056093-aweri7.html Additionally, a live and archived webcast of the conference call will be available on the Company s investor relations website at http://ir.xiaopeng.com. A replay of the conference call will be accessible approximately an hour after the conclusion of the call until September 1, 2026, by dialing the following telephone numbers: United States: +1-855-883-1031 International: +61-7-3107-6325 Hong Kong, China: 800-930-639 Chinese Mainland: 400-120-9216 Replay Access Code: About XPENG 10056093 XPENG is a leading global Physical AI company, dedicated to bringing artificial intelligence into the physical world to reshape future mobility and smart living. Through in-house R&D, XPENG has developed a full-stack Physical AI architecture spanning Turing AI chips, world foundation models, and highly integrated software and hardware applications. This unified technology foundation of XPENG powers an expansive product portfolio of smart EVs, robotaxis, and humanoid robots, advancing the deployment of Physical AI at scale. Headquartered in Guangzhou, China, XPENG is dual-primary listed on the New York Stock Exchange and the Hong Kong Stock Exchange. With global capabilities across R&D, manufacturing, sales, and services, XPENG drives continuous technological innovation and fosters an open Physical AI ecosystem, making life smarter, safer, and better for users worldwide. For more information, please visit https://www.xpeng.com/. 7 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 ordinary share 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 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. For more information on the non-GAAP financial measures, please see the table captioned Unaudited Reconciliations of GAAP and non-GAAP Results set forth in this announcement. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.79 to US$1.00, the exchange rate on June 30, 2026, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement 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, 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 United States Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and XPENG does not undertake any obligation to update any forward-looking statement, except as required under applicable law. 8 For Investor Enquiries IR Department XPeng Inc. E-mail: [email protected] Jenny Cai Piacente Financial Communications Tel: +1-212-481-2050 or +86-10-6508-0677 E-mail: [email protected] For Media Enquiries PR Department XPeng Inc. E-mail: [email protected] Source: XPeng Inc. 9 XPENG INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) December 31, 2025 RMB June 30, 2026 RMB June 30, 2026 US$ ASSETS Current assets Cash and cash equivalents 17,329,612 14,238,387 2,098,479 Restricted cash 6,071,491 6,924,327 1,020,520 Short-term deposits 11,388,834 7,780,960 1,146,772 Restricted short-term deposits 296,277 1,207,694 177,992 Short-term investments 3,217,293 1,537,877 226,655 Long-term deposits, current portion 3,020,317 4,485,471 661,077 Restricted long-term deposits, current portion 600,472 Derivative assets 46,884 6,910 Accounts and notes receivable, net 1,996,917 1,140,279 168,056 Installment payment receivables, net, current portion 3,553,054 3,729,175 549,612 Inventory 10,380,668 13,729,266 2,023,443 Amounts due from related parties 102,219 165,426 24,381 Prepayments and other current assets, net 5,296,673 6,519,738 960,889 Total current assets 63,253,827 61,505,484 9,064,786 Non-current assets Long-term deposits 4,263,542 2,815,695 414,982 Restricted long-term deposits 1,468,708 1,488,663 219,402 Property, plant and equipment, net 13,527,237 17,874,208 2,634,332 Right-of-use assets, net 3,730,921 1,172,310 172,777 Intangible assets, net 4,253,168 3,985,127 587,335 Land use rights, net 3,216,526 3,475,115 512,169 Installment payment receivables, net 6,496,020 6,145,671 905,760 Long-term investments 2,523,037 2,708,224 399,143 Other non-current assets 429,644 415,819 61,284 Total non-current assets 39,908,803 40,080,832 5,907,184 Total assets 103,162,630 101,586,316 14,971,970 10 XPENG INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) December 31, 2025 RMB June 30, 2026 RMB June 30, 2026 US$ LIABILITIES Current liabilities Short-term borrowings 4,282,000 10,070,000 1,484,134 Accounts payable 18,001,675 15,721,318 2,317,036 Notes payable 19,161,724 13,993,642 2,062,408 Amounts due to related parties 1,064 397 59 Income taxes payable 44,682 65,560 9,662 Derivative liabilities 281,009 199,834 29,452 Operating lease liabilities, current portion 445,901 305,387 45,008 Finance lease liabilities, current portion 55,581 75,910 11,188 Deferred revenue, current portion 1,463,065 1,698,642 250,349 Long-term borrowings, current portion 1,837,950 706,156 104,075 Accruals and other liabilities 12,538,698 12,468,572 1,837,640 Total current liabilities 58,113,349 55,305,418 8,151,011 Non-current liabilities Long-term borrowings 6,588,865 8,983,337 1,323,980 Operating lease liabilities 4,246,599 2,068,806 304,904 Finance lease liabilities 740,576 4,649,369 685,232 Deferred revenue 1,206,014 1,354,301 199,599 Deferred tax liabilities 330,353 330,341 48,686 Other non-current liabilities 1,568,284 1,885,892 277,946 Total non-current liabilities 14,680,691 19,272,046 2,840,347 Total liabilities 72,794,040 74,577,464 10,991,358 SHAREHOLDERS EQUITY Class A Ordinary shares 105 106 16 Class B Ordinary shares 21 21 3 Additional paid-in capital 71,236,011 71,532,962 10,542,654 Statutory and other reserves 137,720 161,535 23,807 Accumulated deficit (42,767,710 ) (45,912,689 ) (6,766,693 ) Accumulated other comprehensive income 1,762,443 1,226,917 180,825 Total shareholders equity 30,368,590 27,008,852 3,980,612 Total liabilities and shareholders equity 103,162,630 101,586,316 14,971,970 11 XPENG INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) Three Months Ended June 30, 2025 RMB March 31,2026 RMB June 30, 2026 RMB June 30,2026 US$ Revenues Vehicle sales 16,883,696 10,999,321 17,046,476 2,512,340 Services and others 1,390,709 2,034,460 2,697,117 397,506 Total revenues 18,274,405 13,033,781 19,743,593 2,909,846 Cost of sales Vehicle sales (14,461,688 ) (9,669,451 ) (14,987,590 ) (2,208,897 ) Services and others (645,387 ) (681,737 ) (672,521 ) (99,117 ) Total cost of sales (15,107,075 ) (10,351,188 ) (15,660,111 ) (2,308,014 ) Gross profit 3,167,330 2,682,593 4,083,482 601,832 Operating expenses Research and development expenses (2,206,144 ) (2,906,991 ) (2,914,440 ) (429,535 ) Selling, general and administrative expenses (2,167,241 ) (1,883,438 ) (2,496,484 ) (367,936 ) Other income, net 237,402 182,249 137,250 20,228 Fair value gain on derivative liability relating to the contingent consideration 34,004 51,113 47,662 7,025 Total operating expenses, net (4,101,979 ) (4,557,067 ) (5,226,012 ) (770,218 ) Loss from operations (934,649 ) (1,874,474 ) (1,142,530 ) (168,386 ) Interest income 308,224 257,166 216,746 31,944 Interest expenses (75,161 ) (164,994 ) (124,473 ) (18,345 ) Fair value (loss) gain on derivative assets or derivative liabilities (101 ) 36,969 5,449 Investment gain (loss) on long-term investments 24,401 169,117 (140,377 ) (20,689 ) Exchange gain (loss) from foreign currency transactions 142,684 (148,728 ) (125,295 ) (18,466 ) Other non-operating income (expenses), net 3,454 (959 ) 12,401 1,828 Loss before income tax benefit (expenses) and share of results of equity method investees (531,047 ) (1,762,973 ) (1,266,559 ) (186,665 ) Income tax benefit (expenses) 9,421 (9,251 ) (74,281 ) (10,948 ) Share of results of equity method investees 43,872 (11,876 ) 3,776 557 Net loss (477,754 ) (1,784,100 ) (1,337,064 ) (197,056 ) Net loss attributable to ordinary shareholders of XPeng Inc. (477,754 ) (1,784,100 ) (1,337,064 ) (197,056 ) 12 XPENG INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED) (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) Three Months Ended June 30, 2025 March 31, 2026 June 30, 2026 June 30, 2026 RMB RMB RMB US$ Net loss (477,754 ) (1,784,100 ) (1,337,064 ) (197,056 ) Other comprehensive loss Foreign currency translation adjustment, net of tax (16,414 ) (274,419 ) (261,107 ) (38,482 ) Total comprehensive loss attributable to XPeng Inc. (494,168 ) (2,058,519 ) (1,598,171 ) (235,538 ) Comprehensive loss attributable to ordinary shareholders of XPeng Inc. (494,168 ) (2,058,519 ) (1,598,171 ) (235,538 ) Weighted average number of ordinary shares used in computing net loss per ordinary share Basic and diluted 1,902,441,632 1,910,568,643 1,912,734,380 1,912,734,380 Net loss per ordinary share attributable to ordinary shareholders Basic and diluted (0.25 ) (0.93 ) (0.70 ) (0.10 ) Weighted average number of ADS used in computing net loss per share Basic and diluted 951,220,816 955,284,322 956,367,190 956,367,190 Net loss per ADS attributable to ordinary shareholders Basic and diluted (0.50 ) (1.87 ) (1.40 ) (0.21 ) 13 XPENG INC. UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) Three Months Ended June 30, 2025 March 31, 2026 June 30, 2026 June 30, 2026 RMB RMB RMB US$ Loss from operations (934,649 ) (1,874,474 ) (1,142,530 ) (168,386 ) Fair value gain on derivative liability relating to the contingent consideration (34,004 ) (51,113 ) (47,662 ) (7,025 ) Share-based compensation expenses 126,475 149,549 147,403 21,725 Non-GAAP loss from operations (842,178 ) (1,776,038 ) (1,042,789 ) (153,686 ) Net loss (477,754 ) (1,784,100 ) (1,337,064 ) (197,056 ) Fair value gain on derivative liability relating to the contingent consideration (34,004 ) (51,113 ) (47,662 ) (7,025 ) Share-based compensation expenses 126,475 149,549 147,403 21,725 Non-GAAP net loss (385,283 ) (1,685,664 ) (1,237,323 ) (182,356 ) Net loss attributable to ordinary shareholders (477,754 ) (1,784,100 ) (1,337,064 ) (197,056 ) Fair value gain on derivative liability relating to the contingent consideration (34,004 ) (51,113 ) (47,662 ) (7,025 ) Share-based compensation expenses 126,475 149,549 147,403 21,725 Non-GAAP net loss attributable to ordinary shareholders of XPeng Inc. (385,283 ) (1,685,664 ) (1,237,323 ) (182,356 ) Weighted average number of ordinary shares used in calculating Non-GAAP net loss per share Basic and diluted 1,902,441,632 1,910,568,643 1,912,734,380 1,912,734,380 Non-GAAP net loss per ordinary share Basic and diluted (0.20 ) (0.88 ) (0.65 ) (0.10 ) Weighted average number of ADS used in calculating Non-GAAP net loss per share Basic and diluted 951,220,816 955,284,322 956,367,190 956,367,190 Non-GAAP net loss per ADS Basic and diluted (0.41 ) (1.76 ) (1.29 ) (0.19 ) 14

EX-99.2 3 d75446dex992.htm EX-99.2 EX-99.2 Exhibit 99.2 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. XPeng Inc. * (A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability) (Stock Code: 9868) Interim Results Announcement for the Six Months Ended June 30, 2026 XPeng Inc. ( XPENG or the Company, Hong Kong stock code: 9868 and NYSE symbol: XPEV), a leading global Physical AI company, today announced the unaudited financial results of the Company and its subsidiaries and consolidated affiliated entities (the Group ) for the six months ended June 30, 2026 (the Reporting Period ). OPERATIONAL AND FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 Total deliveries of vehicles were 165,977 in the six months ended June 30, 2026, representing a decrease of 15.8% from 197,189 in the six months ended June 30, 2025. XPENG s physical sales network had a total of 740 stores, covering 257 cities as of June 30, 2026. XPENG self-operated charging station network reached 3,780 stations, including 2,720 XPENG ultra-fast charging stations as of June 30, 2026. Total revenues were RMB32.78 billion in the six months ended June 30, 2026, representing a decrease of 3.8% from RMB34.09 billion in the six months ended June 30, 2025. Revenues from vehicle sales were RMB28.05 billion in the six months ended June 30, 2026, representing a decrease of 10.3% from RMB31.25 billion in the six months ended June 30, 2025. Gross margin was 20.6% in the six months ended June 30, 2026, compared with 16.5% in the six months ended June 30, 2025. Vehicle margin, which is gross profit of vehicle sales as a percentage of vehicle sales revenues, was 12.1% in the six months ended June 30, 2026, compared with 12.6% in the six months ended June 30, 2025. 1 Net loss was RMB3.12 billion in the six months ended June 30, 2026, compared with RMB1.14 billion in the six months ended June 30, 2025. Excluding share-based compensation expenses and fair value (gain) loss on derivative liability relating to the contingent consideration, non-GAAP net loss was RMB2.92 billion in the six months ended June 30, 2026, compared with RMB0.81 billion in the six months ended June 30, 2025. Net loss attributable to ordinary shareholders of XPENG was RMB3.12 billion in the six months ended June 30, 2026, compared with RMB1.14 billion in the six months ended June 30, 2025. Excluding share-based compensation expenses and fair value (gain) loss on derivative liability relating to the contingent consideration, non-GAAP net loss attributable to ordinary shareholders of XPENG was RMB2.92 billion in the six months ended June 30, 2026, compared with RMB0.81 billion in the six months ended June 30, 2025. Basic and diluted net loss per American depositary share (ADS) were both RMB3.27 and basic and diluted net loss per ordinary share were both RMB1.63 for the six months ended June 30, 2026. Each ADS represents two Class A ordinary shares. Non-GAAP basic and diluted net loss per ADS were both RMB3.06 and non-GAAP basic and diluted net loss per ordinary share were both RMB1.53 for the six months ended June 30, 2026. Cash position1 was RMB40.48 billion as of June 30, 2026, compared with RMB47.66 billion as of December 31, 2025. MANAGEMENT QUOTES The back-to-back success of the GX and MONA L03 gives us greater confidence in our upcoming new models, as we translate our leading edge in smart technologies and design into more blockbuster products and stronger brand momentum, said Mr. Xiaopeng He, Chairman and CEO of XPENG. The development of the mass-production version of XPENG s humanoid robot has recently reached several significant milestones. I believe XPENG will not only build one of China s most valuable humanoid robotics companies, but also become a global leader in physical AI, spearheading the large-scale adoption and commercialization of advanced general-purpose humanoid robots and autonomous driving technologies in China and overseas. During the second quarter of 2026, our operations remained resilient despite industry-wide cost pressures. Driven by breakthroughs in our premiumization and globalization efforts, our gross margin continued to exceed 20%, added Dr. Hongdi Brian Gu, Vice Chairman and Co-President of XPENG. I expect the mass production and commercialization of physical AI technologies to accelerate over the coming year, generating meaningful gross profit growth to support our continued R&D investment in physical AI. 1 Cash position includes cash and cash equivalents, restricted cash, short-term investments and time deposits. 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 RECENT DEVELOPMENTS Deliveries in July 2026 Total deliveries were 38,027 vehicles in July 2026. As of July 31, 2026, year-to-date total deliveries were 204,004 vehicles. Launch of MONA L03 On July 16, 2026, XPENG held the global launch event of MONA L03, the Next-Gen AI SUV Coupe, in Munich, Germany. Entering into the Dogotix Share Purchase Agreement On August 24, 2026, Dogotix Inc. (a subsidiary of the Company) entered into a share purchase agreement (the Dogotix Share Purchase Agreement ) with, among others, certain subscribers, pursuant to which such subscribers conditionally agreed to subscribe for certain shares to be newly issued by Dogotix Inc. at an aggregate purchase price of US$900 million. For details, please refer to the announcement of the Company dated August 24, 2026, in relation to, among others, the Dogotix Share Purchase Agreement. UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 Total revenues were RMB32.78 billion in the six months ended June 30, 2026, representing a decrease of 3.8% from RMB34.09 billion in the six months ended June 30, 2025. Revenues from vehicle sales were RMB28.05 billion in the six months ended June 30, 2026, representing a decrease of 10.3% from RMB31.25 billion in the six months ended June 30, 2025. The year-over-year decrease was mainly attributable to lower vehicle deliveries. Revenues from services and others were RMB4.73 billion in the six months ended June 30, 2026, representing an increase of 67.1% from RMB2.83 billion in the six months ended June 30, 2025. The year-over-year increase was primarily attributable to the increased revenues from (i) technical research and development services ( technical R&D services ) rendered to a car manufacturer (the Manufacturer ) with the successful achievement of certain key milestones in the current period, under the agreement entered into with the Manufacturer; and (ii) parts and accessories sales in line with higher accumulated vehicle sales. Cost of sales was RMB26.01 billion in the six months ended June 30, 2026, representing a decrease of 8.6% from RMB28.46 billion in the six months ended June 30, 2025. The year-over-year decrease was mainly in line with vehicle deliveries as described above. Gross margin was 20.6% in the six months ended June 30, 2026, compared with 16.5% in the six months ended June 30, 2025. Vehicle margin was 12.1% in the six months ended June 30, 2026, compared with 12.6% in the six months ended June 30, 2025. Services and others margin was 71.4% in the six months ended June 30, 2026, compared with 60.1% in the six months ended June 30, 2025. The year-over-year increase was primarily attributable to the aforementioned revenue from technical R&D services and parts and accessories sales. 3 Research and development expenses were RMB5.82 billion in the six months ended June 30, 2026, representing an increase of 39.0% from RMB4.19 billion in the six months ended June 30, 2025. The year-over-year increase was mainly due to higher expenses related to the development of new vehicle models and AI-related technologies as the Company expanded its product portfolio to support future growth. Selling, general and administrative expenses were RMB4.38 billion in the six months ended June 30, 2026, representing an increase of 6.5% from RMB4.11 billion in the six months ended June 30, 2025. The year-over-year increase was mainly due to higher marketing and advertising expenses. Other income, net was RMB0.32 billion in the six months ended June 30, 2026, representing a decrease of 59.1% from RMB0.78 billion in the six months ended June 30, 2025. The year-over-year decrease was primarily due to the decrease in receipt of government subsidies. Fair value gain (loss) on derivative liability relating to the contingent consideration was a gain of RMB0.10 billion in the six months ended June 30, 2026, compared with a loss of RMB0.08 billion in the six months ended June 30, 2025. This non-cash 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 RMB3.02 billion in the six months ended June 30, 2026, compared with RMB1.98 billion in the six months ended June 30, 2025. Non-GAAP loss from operations, which excludes share-based compensation expenses and fair value (gain) loss on derivative liability relating to the contingent consideration, was RMB2.82 billion in the six months ended June 30, 2026, compared with RMB1.65 billion in the six months ended June 30, 2025. Net loss was RMB3.12 billion in the six months ended June 30, 2026, compared with RMB1.14 billion in the six months ended June 30, 2025. Non-GAAP net loss, which excludes share-based compensation expenses and fair value (gain) loss on derivative liability relating to the contingent consideration, was RMB2.92 billion in the six months ended June 30, 2026, compared with RMB0.81 billion in the six months ended June 30, 2025. Net loss attributable to ordinary shareholders of XPENG was RMB3.12 billion in the six months ended June 30, 2026, compared with RMB1.14 billion in the six months ended June 30, 2025. Non-GAAP net loss attributable to ordinary shareholders of XPENG, which excludes share-based compensation expenses and fair value (gain) loss on derivative liability relating to the contingent consideration, was RMB2.92 billion in the six months ended June 30, 2026, compared with RMB0.81 billion in the six months ended June 30, 2025. Basic and diluted net loss per ADS were both RMB3.27 in the six months ended June 30, 2026, compared with RMB1.20 in the six months ended June 30, 2025. Non-GAAP basic and diluted net loss per ADS were both RMB3.06 in the six months ended June 30, 2026, compared with RMB0.85 in the six months ended June 30, 2025. 4 Balance Sheets As of June 30, 2026, the Company had a cash position of RMB40.48 billion, compared with RMB47.66 billion as of December 31, 2025. BUSINESS OUTLOOK For the third quarter of 2026, the Company expects: Deliveries of vehicles to be between 115,000 and 121,000, representing a year-over-year change of approximately -0.87% to +4.30%, and a quarter-over-quarter increase of approximately 11.33% to 17.14%. Total revenues to be between RMB21.7 billion and RMB23.4 billion, representing a year-over-year increase of approximately 6.47% to 14.81%, and a quarter-over-quarter increase of approximately 9.91% to 18.52%. The above outlook is based on the current market conditions and reflects the Company s preliminary estimates of market and operating conditions, and customer demand, which are all subject to change. MANAGEMENT DISCUSSION AND ANALYSIS 1. Liquidity and capital resources The Group has been incurring losses from operations since inception. The Group incurred net losses of RMB3.12 billion and RMB1.14 billion for the six months ended June 30, 2026 and 2025, respectively. Accumulated deficit amounted to RMB45.91 billion as of June 30, 2026. Net cash used in operating activities was approximately RMB11.72 billion for the six months ended June 30, 2026 and net cash provided by operating activities was approximately RMB7.64 billion for the six months ended June 30, 2025. 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 the 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 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. 5 As of June 30, 2026, the balance of cash and cash equivalents, restricted cash, excluding RMB0.02 billion (December 31, 2025: RMB0.06 billion) restricted as to withdrawal or use for legal disputes, short-term investments and time deposits was RMB40.46 billion (December 31, 2025: RMB47.60 billion). 2. Interest-bearing bank and other borrowings (i) Short-term bank loans As of June 30, 2026, the Group s short-term borrowings from banks in the PRC amounted to RMB10.07 billion in aggregate. The effective interest rate of these borrowings was 1.31% per annum. As of December 31, 2025, the Group s short-term borrowings from banks in the PRC amounted to RMB4.28 billion in aggregate. The effective interest rate of these borrowings was 2.05% per annum. (ii) Long-term bank loans Ref. Company Outstanding loanRMB in billion As of June 30, 2026Currentportionaccording tothe repaymentscheduleRMB in billion Long-termportionRMB in billion Effectiveinterestrate Outstandingloan RMB in billion As of December 31, 2025Currentportionaccording to therepaymentscheduleRMB in billion Long-termportionRMB in billion Effectiveinterest rate 1 Zhaoqing Xiaopeng Motors Co., Ltd. 0.38 0.01 0.37 4.00% 1.26 0.51 0.75 3.63% 2 Zhaoqing Xiaopeng New Energy Investment Co., Ltd. 3.89 0.12 3.77 2.41% 1.28 0.52 0.76 3.26% 3 Guangzhou Xiaopeng Motors Financing Lease Co., Ltd. 0.14 0.14 3.80% 4 Guangdong Xiaopeng Motors Technology Group Co., Ltd. 1.69 0.11 1.58 2.25% 1.69 0.06 1.63 2.25% 5 Xiaopeng Motors Huazhong (Wuhan) Co., Ltd. 2.01 0.25 1.76 3.15% 2.10 0.22 1.88 3.15% 6 Guangzhou Pengyue Automobile Development Co., Ltd. 0.91 0.02 0.89 3.05% 0.87 0.02 0.85 3.08% 7 Guangzhou Xiaopeng New Energy Motors Co., Ltd. 0.76 0.15 0.61 3.87% 0.82 0.10 0.72 4.00% TOTAL 9.64 0.66 8.98 8.16 1.57 6.59 6 As of June 30, 2026, the Group obtained secured borrowings from several banks of RMB9.64 billion in aggregate. The maturity dates ranged from July 2026 to June 2035. As of December 31, 2025, the Group obtained secured borrowings from several banks of RMB8.16 billion in aggregate. The maturity dates ranged from January 2026 to June 2035. Moreover, the Group received subsidies from the local government for interest expenses incurred associated with the borrowings. As of June 30, 2026 and December 31, 2025, the aggregate sum of loans receiving government-subsidized interest amounted to RMB2.94 billion and RMB3.48 billion, respectively. For the six months ended June 30, 2026 and 2025, the Group recognized the subsidies to reduce the related interest expenses as incurred or to reduce the interest expenses capitalized in the construction costs of certain manufacturing plant or base, if any. (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, 2026, the balance of current and non-current portion of the ABS were RMB0.05 billion and nil, respectively. As of December 31, 2025, the balance of current and non-current portion of the ABS were RMB0.27 billion and RMB0.002 billion, respectively. As of June 30, 2026, all of the bank loans and other borrowings of the Group were denominated in RMB and bore fixed and floating interest rates, and the Group had not been in violation of any of the covenants pursuant to the applicable agreement(s) entered with the lenders. 3. Pledge of assets As of June 30, 2026, the Group pledged restricted cash and restricted deposits of RMB9.62 billion (December 31, 2025: RMB8.44 billion) for bank borrowings and the issuance of letter of guarantee, bank notes, legal disputes and others. Certain manufacturing buildings of Guangzhou plants, Wuhan base 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 RMB6.60 billion (December 31, 2025: RMB5.80 billion). 7 4. 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, 2026, the gearing ratio of the Group is 73.2% (December 31, 2025: 41.8%). 5. Material investments For the six months ended June 30, 2026, 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, 2026). As of June 30, 2026, the Group did not have other plans for material investments and capital assets. 6. Capital commitments and capital expenditure As of June 30, 2026, the Group had capital commitments amounting to RMB1.63 billion for the acquisition of property, plant and equipment, which was primarily for Guangzhou and Zhaoqing plants and Wuhan base, and RMB0.09 billion for other investments. 7. Contingent liabilities As of June 30, 2026, the Group did not have any material contingent liabilities. 8. Material acquisitions and disposals For the six months ended June 30, 2026, the Group did not have any material acquisitions and disposals. 9. 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 exchange 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 enters into hedging transactions in an effort to reduce its exposure to foreign currency exchange risk. During the six months ended June 30, 2026, the Group entered into foreign exchange forward contracts and currency swap contracts, which were not qualified for hedge accounting. As of June 30, 2026, the Group held foreign exchange forward contracts and currency swap contracts, which were not qualified for hedge accounting. 8 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. 10. Employees and remuneration policies The following table sets forth the breakdown of the Group s employees by function as of June 30, 2026: Function Number of Employees Research and development 8,735 Sales and marketing 5,432 Manufacturing 5,616 General and administration 60 Operation 789 Total 20,632 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. 9 OTHER INFORMATION Purchase, sale and redemption of the Company s listed securities On February 4, 2026, the Company issued 7,170 Class A ordinary shares to satisfy the restricted share units (the RSUs ) pursuant to the 2019 equity incentive plan approved and adopted in June 2020, as amended and restated in August 2020 and June 2021 (the 2019 Equity Incentive Plan ). On March 25, 2026, the Company issued 2,194,444 Class A ordinary shares to satisfy the RSUs pursuant to the 2019 Equity Incentive Plan and the 2025 share incentive scheme adopted in March 2025 and approved in June 2025 (the 2025 Share Incentive Scheme ). On April 1, 2026, the Company issued 600,000 Class A ordinary shares to satisfy the RSUs pursuant to the 2019 Equity Incentive Plan. On June 24, 2026, the Company issued 1,642,300 Class A ordinary shares to satisfy the RSUs pursuant to the 2019 Equity Incentive Plan and the 2025 Share Incentive Scheme. 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, 2026. 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 Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (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 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 of directors (the Directors ) of the Company (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. 10 Compliance with the Model Code for Securities Transactions The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the Model Code ) as set out in Appendix C3 to the Listing Rules 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. Important events after the Reporting Period Save as disclosed in this announcement, no important events affecting the Group occurred since June 30, 2026 and up to the date of this announcement. Review of unaudited interim condensed consolidated financial statements The unaudited interim condensed consolidated financial statements of the Group for the six months ended June 30, 2026 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, 2026 have also been reviewed by the audit committee of the Company. About XPENG XPENG is a leading global Physical AI company, dedicated to bringing artificial intelligence into the physical world to reshape future mobility and smart living. Through in-house R&D, XPENG has developed a full-stack Physical AI architecture spanning Turing AI chips, world foundation models, and highly integrated software and hardware applications. This unified technology foundation of XPENG powers an expansive product portfolio of smart EVs, robotaxis, and humanoid robots, advancing the deployment of Physical AI at scale. Headquartered in Guangzhou, China, XPENG is dual-primary listed on the New York Stock Exchange and the Hong Kong Stock Exchange. With global capabilities across R&D, manufacturing, sales, and services, XPENG drives continuous technological innovation and fosters an open Physical AI ecosystem, making life smarter, safer, and better for users worldwide. For more information, please visit https://www.xpeng.com/. 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 ordinary share 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 (gain) loss 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. 11 For more information on the non-GAAP financial measures, please see the table captioned Unaudited Interim Reconciliations of GAAP and non-GAAP Results set forth in this announcement. Safe Harbor Statement This announcement 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, 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 United States Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and XPENG does not undertake any obligation to update any forward-looking statement, except as required under applicable law. By order of the Board XPeng Inc. Xiaopeng He Chairman Hong Kong, Monday, August 24, 2026 As at the date of this announcement, the board of directors of the Company comprises Mr. Xiaopeng He as an executive director, Mr. Ji-Xun Foo as a non-executive director, and Mr. Donghao Yang, Ms. Fang Qu, Mr. HongJiang Zhang and Mr. Yudong Chen as independent non-executive directors. * For identification purpose only 12 XPENG INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) For the Six Months EndedJune 30, Note 2026 2025 RMB RMB Revenues Vehicle sales 3 28,045,797 31,252,994 Services and others 3 4,731,577 2,832,039 Total revenues 3 32,777,374 34,085,033 Cost of sales Vehicle sales (24,657,041 ) (27,327,991 ) Services and others (1,354,258 ) (1,130,182 ) Total cost of sales (26,011,299 ) (28,458,173 ) Gross profit 6,766,075 5,626,860 Operating expenses Research and development expenses (5,821,431 ) (4,186,868 ) Selling, general and administrative expenses (4,379,922 ) (4,113,305 ) Other income, net 319,499 781,442 Fair value gain (loss) on derivative liability relating to the contingent consideration 98,775 (84,225 ) Total operating expenses, net (9,783,079 ) (7,602,956 ) Loss from operations (3,017,004 ) (1,976,096 ) Interest income 473,912 599,451 Interest expenses (289,467 ) (204,096 ) Fair value gain on derivative assets or derivative liabilities 36,868 Investment gain on long-term investments 28,740 104,054 Exchange (loss) gain from foreign currency transactions (274,023 ) 273,132 Other non-operating income, net 11,442 23,729 Loss before income tax (expenses) benefit and share of results of equity method investees (3,029,532 ) (1,179,826 ) Income tax (expenses) benefit 4 (83,532 ) 1,430 Share of results of equity method investees (8,100 ) 36,596 Net loss (3,121,164 ) (1,141,800 ) Net loss attributable to ordinary shareholders of XPeng Inc. (3,121,164 ) (1,141,800 ) 13 XPENG INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS (CONTINUED) (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) For the Six Months Ended June 30, Note 2026 2025 RMB RMB Net loss (3,121,164 ) (1,141,800 ) Other comprehensive loss Foreign currency translation adjustment, net of tax (535,526 ) (42,124 ) Total comprehensive loss attributable to XPeng Inc. (3,656,690 ) (1,183,924 ) Comprehensive loss attributable to ordinary shareholders of XPeng Inc. (3,656,690 ) (1,183,924 ) Weighted average number of ordinary shares used in computing net loss per ordinary share Basic and diluted 5 1,911,657,495 1,900,912,109 Net loss per ordinary share attributable to ordinary shareholders Basic and diluted 5 (1.63 ) (0.60 ) Weighted average number of ADS used in computing net loss per share Basic and diluted 955,828,748 950,456,055 Net loss per ADS attributable to ordinary shareholders Basic and diluted (3.27 ) (1.20 ) 14 XPENG INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) Note As of June 30, 2026 RMB As of December 31, 2025 RMB ASSETS Current assets Cash and cash equivalents 14,238,387 17,329,612 Restricted cash 6,924,327 6,071,491 Short-term deposits 7,780,960 11,388,834 Restricted short-term deposits 1,207,694 296,277 Short-term investments 1,537,877 3,217,293 Long-term deposits, current portion 4,485,471 3,020,317 Restricted long-term deposits, current portion 600,472 Derivative assets 46,884 Accounts and notes receivable, net 6 1,140,279 1,996,917 Installment payment receivables, net, current portion 3,729,175 3,553,054 Inventory 13,729,266 10,380,668 Amounts due from related parties 165,426 102,219 Prepayments and other current assets, net 6,519,738 5,296,673 Total current assets 61,505,484 63,253,827 Non-current assets Long-term deposits 2,815,695 4,263,542 Restricted long-term deposits 1,488,663 1,468,708 Property, plant and equipment, net 17,874,208 13,527,237 Right-of-use assets, net 1,172,310 3,730,921 Intangible assets, net 3,985,127 4,253,168 Land use rights, net 3,475,115 3,216,526 Installment payment receivables, net 6,145,671 6,496,020 Long-term investments 2,708,224 2,523,037 Other non-current assets 415,819 429,644 Total non-current assets 40,080,832 39,908,803 Total assets 101,586,316 103,162,630 15 XPENG INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED) (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) Note As of June 30, 2026 RMB As ofDecember 31, 2025 RMB LIABILITIES Current liabilities Short-term borrowings 10,070,000 4,282,000 Accounts payable 7 15,721,318 18,001,675 Notes payable 8 13,993,642 19,161,724 Amounts due to related parties 397 1,064 Income taxes payable 65,560 44,682 Derivative liabilities 199,834 281,009 Operating lease liabilities, current portion 305,387 445,901 Finance lease liabilities, current portion 75,910 55,581 Deferred revenue, current portion 1,698,642 1,463,065 Long-term borrowings, current portion 706,156 1,837,950 Accruals and other liabilities 12,468,572 12,538,698 Total current liabilities 55,305,418 58,113,349 Non-current liabilities Long-term borrowings 8,983,337 6,588,865 Operating lease liabilities 2,068,806 4,246,599 Finance lease liabilities 4,649,369 740,576 Deferred revenue 1,354,301 1,206,014 Deferred tax liabilities 330,341 330,353 Other non-current liabilities 1,885,892 1,568,284 Total non-current liabilities 19,272,046 14,680,691 Total liabilities 74,577,464 72,794,040 16 XPENG INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED) (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) As of June 30, As ofDecember 31, 2026 2025 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, 1,567,388,524 and 1,562,944,610 shares issued, 1,564,662,874 and 1,559,991,508 shares outstanding as of June 30, 2026 and December 31, 2025, respectively) 106 105 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, 2026 and December 31, 2025, respectively) 21 21 Additional paid-in capital 71,532,962 71,236,011 Statutory and other reserves 161,535 137,720 Accumulated deficit (45,912,689 ) (42,767,710 ) Accumulated other comprehensive income 1,226,917 1,762,443 Total shareholders equity 27,008,852 30,368,590 Total liabilities and shareholders equity 101,586,316 103,162,630 17 NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. General Information 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 . XPENG is a leading global Physical AI company, dedicated to bringing artificial intelligence into the physical world. Powered by its full-stack technology capabilities, XPENG develops an expansive product portfolio spanning smart EVs, robotaxis, and humanoid robots for future mobility and smart living. The company manufactures its vehicles through its own plants in Zhaoqing, Guangzhou, and its manufacturing base in Wuhan. As of June 30, 2026, XPENG conducts its primary operations in the People s Republic of China ( PRC ) while expanding its global capabilities across research and development, sales, and services to serve users worldwide. 2. Summary of Significant Accounting Policies (a) Basis of presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ( U.S. GAAP ) for interim financial information. 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 interim condensed 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, 2026, results of operations and cash flows for the six months ended June 30, 2026 and 2025. The consolidated balance sheets as of December 31, 2025 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 interim condensed financial statements and related disclosures have been prepared with the presumption that users of the unaudited interim condensed 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, 2025. 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. 18 (b) 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. Hence, the Group has only one reportable segment. As one reportable segment, the Group derives revenue from vehicle sales and the related business. The following table presents revenues by geographic area based on the sales location of our products: For the Six Months EndedJune 30, 2026 RMB 000 2025 RMB 000 Chinese Mainland 24,550,923 29,013,920 Overseas 8,226,451 5,071,113 Total 32,777,374 34,085,033 As the Group s long-lived assets are substantially located in Chinese Mainland, no segment geographical information of long-lived assets is presented. The CODM does not review any information regarding total assets on a reportable segment basis. The primary measure of segment revenue and profitability for the Group s operating segment is considered to be consolidated revenue and gross profit. Significant segment expense reviewed by the CODM on a regular basis included within gross profit includes cost of sales, which is separately presented on the Group s unaudited condensed consolidated statements of comprehensive loss. For the operating results of segment provided to and reviewed by CODM, please refer to the unaudited condensed consolidated statements of comprehensive loss. 19 3. Revenues Revenues by source consisted of the following: For the Six Months EndedJune 30, 2026 2025 RMB 000 RMB 000 Revenue from contracts with customers Vehicle sales At a point in time 28,045,797 31,252,994 Services and others At a point in time 1,765,039 1,331,264 Over time 2,648,136 1,290,763 Revenue from other sources Services and others 318,402 210,012 Total 32,777,374 34,085,033 4. Taxation Composition of income tax expenses (benefit) for the periods presented are as follows: For the Six months EndedJune 30, 2026 RMB 000 2025 RMB 000 Current income tax expenses 75,944 6,870 Deferred income tax expenses (benefit) 7,588 (8,300 ) Income tax expenses (benefit) 83,532 (1,430 ) 20 5. 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, 2026 and 2025 as follows: For the Six months Ended June 30, 2026 2025 RMB 000 RMB 000 Numerator: Net loss (3,121,164 ) (1,141,800 ) Net loss attributable to ordinary shareholders of XPeng Inc. (3,121,164 ) (1,141,800 ) Denominator: Weighted average number of ordinary shares outstanding-basic and diluted 1,911,657,495 1,900,912,109 Basic and diluted net loss per share attributable to ordinary shareholders of XPeng Inc. (1.63 ) (0.60 ) For the six months ended June 30, 2026 and 2025, 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, 2026 and 2025, 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 55,292,182 and 33,072,605 as of June 30, 2026 and 2025, 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 14,276,521, as of June 30, 2026 and 2025, respectively. 21 6. Accounts and Notes Receivable, net As of June 30, 2026 RMB 000 As ofDecember 31, 2025 RMB 000 Accounts receivable, net 611,087 842,940 Notes receivable 529,192 1,153,977 Total 1,140,279 1,996,917 Accounts receivable consisted of the following: As ofJune 30, 2026 RMB 000 As ofDecember 31, 2025 RMB 000 Accounts receivable, gross 634,341 932,187 Allowance for doubtful accounts (23,254 ) (89,247 ) Accounts receivable, net 611,087 842,940 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 ofJune 30, 2026 RMB 000 As ofDecember 31, 2025 RMB 000 0 3 months 444,503 635,402 3 6 months 7,276 18,756 6 12 months 3,523 5,507 Over 1 year 179,039 272,522 Accounts receivable, gross 634,341 932,187 22 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 ofJune 30, 2026 RMB 000 As ofDecember 31, 2025 RMB 000 0 3 months 529,192 840,296 3 6 months 313,681 Notes receivable 529,192 1,153,977 7. Accounts Payable As of June 30, 2026 RMB 000 As ofDecember 31, 2025 RMB 000 Accounts payable 15,721,318 18,001,675 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 June 30, 2026 RMB 000 As ofDecember 31, 2025 RMB 000 0 3 months 14,546,625 16,862,769 3 6 months 761,239 583,601 6 12 months 281,383 361,753 Over 1 year 132,071 193,552 Total 15,721,318 18,001,675 23 8. Notes Payable As of June 30, 2026 RMB 000 As ofDecember 31, 2025 RMB 000 Bank acceptance notes payable 13,993,642 19,161,724 The bank acceptance notes payable represent 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 June 30, 2026 RMB 000 As ofDecember 31, 2025 RMB 000 0 3 months 7,146,999 11,103,257 3 6 months 6,846,643 8,058,467 Total 13,993,642 19,161,724 9. Dividends Dividends are recognized when declared. No dividend was declared for the six months ended June 30, 2026 and 2025, respectively. 24 XPENG INC. UNAUDITED INTERIM RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) For the Six Months Ended June 30, 2026 RMB 2025 RMB Loss from operations (3,017,004 ) (1,976,096 ) Fair value (gain) loss on derivative liability relating to contingent consideration (98,775 ) 84,225 Share-based compensation expenses 296,952 246,503 Non-GAAP loss from operations (2,818,827 ) (1,645,368 ) Net loss (3,121,164 ) (1,141,800 ) Fair value (gain) loss on derivative liability relating to contingent consideration (98,775 ) 84,225 Share-based compensation expenses 296,952 246,503 Non-GAAP net loss (2,922,987 ) (811,072 ) Net loss attributable to ordinary shareholders (3,121,164 ) (1,141,800 ) Fair value (gain) loss on derivative liability relating to contingent consideration (98,775 ) 84,225 Share-based compensation expenses 296,952 246,503 Non-GAAP net loss attributable to ordinary shareholders of XPeng Inc. (2,922,987 ) (811,072 ) Weighted average number of ordinary shares used in calculating Non-GAAP net loss per share Basic and diluted 1,911,657,495 1,900,912,109 Non-GAAP net loss per ordinary share Basic and diluted (1.53 ) (0.43 ) Weighted average number of ADS used in calculating Non-GAAP net loss per share Basic and diluted 955,828,748 950,456,055 Non-GAAP net loss per ADS Basic and diluted (3.06 ) (0.85 ) 25