Movement Alert|XPeng Group Falls 3.19% in Regular Trading, Auto Sector Dragged by May Retail Data Plunge and Q1 Loss Pressure

Market Focus06-18

On June 18, XPeng Group-W declined 3.19% in regular trading, trading at HK$51.7/share, with turnover of HK$292 million. The stock continued its multi-day slide amid dual headwinds from weak industry data and disappointing quarterly results.

On the news front, National Bureau of Statistics data released this week showed May auto retail sales fell 16.1% year-over-year, with January-to-May cumulative auto retail declining 11.8% YoY, signaling a sharp slowdown in consumer demand. The entire HK-listed auto sector traded lower, with BYD Company down 0.67%, Geely Auto down 1.68%, Li Auto down 2.78%, and Great Wall Motor down 4.51%.

Compounding sector weakness, XPeng reported a Q1 net loss of RMB 1.78 billion, with revenue declining 17.6% YoY and deliveries falling 33.3% YoY, returning to losses after a brief period of profitability. R&D expense ratio climbed to 22.33%, while CEO He Xiaopeng assumed direct leadership of the robotics division on June 10 following executive departures. Multiple foreign investment banks including Citi and JPMorgan have recently cut target prices across the auto sector amid intensifying price competition and margin compression.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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