Xpeng's cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits reached RMB 43.5 billion by the end of last year.
Xpeng Motors (NYSE: XPEV, HKG: 9868), which already has RMB tens of billions in cash reserves, has received a new line of credit from a local bank.
Agricultural Bank of China (ABC) Guangdong Branch will grant Xpeng an RMB 7.5 billion ($1.14 billion) comprehensive credit line to support the electric vehicle (EV) maker's business operations and growth, according to a press release shared with CnEVPost today.
Xpeng and the bank signed a strategic cooperation agreement in Guangzhou, with He Xiaopeng, the EV maker's chairman and CEO, and Zhu Zhenggang, president of ABC Guangdong Branch, attending the ceremony.
(Image credit: Xpeng Motors)
The credit line is the largest granted to an emerging Chinese automaker by the ABC and marks the bank's high recognition of Xpeng's industry position and development prospects, the EV maker said.
"We are very pleased with the agreement, with terms demonstrating the financial institution's strong trust in our solid business fundamentals and growth prospects," said Mr. He, adding, "As we pursue rapid technology and product iterations, we will continue to strengthen our product competitiveness and bring compelling EV experience to our consumers."
In 2021, Xpeng achieved full-year revenue of more than RMB 20 billion, up 259 percent year-on-year, and took the No. 1 spot for deliveries by China's new car makers with 98,155 units, it said.
The achievement is backed by Xpeng's firm investment in technology development, production and sales and service ecology to bring a quality experience to car owners at home and abroad, it said.
These credit facilities will further diversify Xpeng's funding channels and help optimize the efficiencies in cash management, cost control and more corporate initiatives, it said.
Xpeng's cash and cash equivalents, restricted cash, short-term deposits, short-term investments and long-term deposits reached RMB 43.5 billion by the end of last year, according to its fourth-quarter 2021 earnings report late last month.
The latest credit line appears to be providing a reserve of funds for the company's next technology as well as product development.
Xpeng plans to officially launch XPILOT 4.0 in 2023, which will enable intelligent assisted driving for full scenarios on the highway and in the city, the company said in a conference call after announcing its fourth-quarter earnings.
The company will have at least four models supporting XPILOT 4.0 in 2023 and will gradually unify the smart-assisted driving hardware and software platforms for new Xpeng models.
Xpeng will also launch Robotaxi test operations on the G9 SUV in the fourth quarter of this year. The G9 was unveiled late last year and is expected to start delivery in the third quarter.
The company will launch two new model platforms and their first models in 2023, a C-segment platform and a B-segment platform, which will use integrated die-cast technology.
Xpeng delivered 15,414 vehicles in March, up 202 percent from a year earlier, according to figures the company released earlier this month. It delivered 9,183 units of the P7 flagship sedan in March, marking the first time deliveries of the model exceeded 9,000.