Hong Kong Stock Market Update: XPENG-W surged over 5% as it is about to launch a brand new model. The intelligent driving flagship model is set to officially hit the road in the second quarter.

Zhitong App learned that XPENG-W (09868) surged by over 5%, as of the time of publication, it rose by 4.89% to HKD 39.65, with a turnover of HKD 92.2449 million.

On the news front, XPeng's Chairman and CEO, He Xiaopeng, announced that XPeng is about to launch a brand new brand, officially entering the global 100-150 thousand level automobile market, aiming to provide young people with a truly AI smart driving car. He mentioned that XPeng will upgrade its "AI technology core smart driving" this year, with a planned annual investment of 3.5 billion yuan in intelligent R&D and the recruitment of 4,000 new employees. In addition, in the second quarter of this year, Xiaopeng's AI smart driving large model will officially be "on board", making it the first mass-produced and deployed AI and cognitive engine for vehicles in the automotive industry.

According to a research report from Shenwan Hongyuan, the company's smart driving capabilities are leading, with the potential to deeply participate in the domestic high-end smart driving development wave; profitability will significantly improve after cost reduction and efficiency enhancement; and it is about to usher in a big year for products in 2024 and 2025. The report also pointed out that XPeng is still in a period of losses before the large-scale volume expansion, but with the continuous advancement of cost reduction and efficiency enhancement measures and the contribution of new models to sales volume, it is expected to quickly achieve a reduction in losses.