Li Auto Inc. Announces Unaudited Third Quarter 2024 Financial Results
Li Auto reported strong Q3 2024 financial results with total revenues reaching RMB42.9 billion (US$6.1 billion), up 23.6% year-over-year. The company delivered 152,831 vehicles in Q3, representing a 45.4% increase from the previous year. Vehicle margin was 20.9%, and gross margin stood at 21.5%. Net income reached RMB2.8 billion (US$401.9 million). The company achieved a significant milestone of one million cumulative vehicle deliveries in October 2024. For Q4 2024, Li Auto expects deliveries between 160,000-170,000 vehicles and revenues between RMB43.2-45.9 billion.
Li Auto ha riportato risultati finanziari solidi per il terzo trimestre del 2024 con ricavi totali che hanno raggiunto i 42,9 miliardi di RMB (6,1 miliardi di dollari USA), in aumento del 23,6% rispetto all'anno precedente. L'azienda ha consegnato 152.831 veicoli nel terzo trimestre, con un incremento del 45,4% rispetto all'anno scorso. Il margine sui veicoli è stato del 20,9% e il margine lordo è stato del 21,5%. Il reddito netto ha raggiunto i 2,8 miliardi di RMB (401,9 milioni di dollari USA). L'azienda ha raggiunto un traguardo significativo di un milione di consegne cumulative di veicoli nell'ottobre del 2024. Per il quarto trimestre del 2024, Li Auto prevede consegne tra 160.000 e 170.000 veicoli e ricavi tra 43,2 e 45,9 miliardi di RMB.
Li Auto informó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos totales alcanzando 42.9 mil millones de RMB (6.1 mil millones de dólares estadounidenses), un aumento del 23.6% año tras año. La empresa entregó 152,831 vehículos en el tercer trimestre, lo que representa un incremento del 45.4% en comparación con el año anterior. El margen de vehículos fue del 20.9%, y el margen bruto se situó en el 21.5%. Los ingresos netos alcanzaron 2.8 mil millones de RMB (401.9 millones de dólares estadounidenses). La compañía alcanzó un hito significativo de un millón de entregas acumulativas de vehículos en octubre de 2024. Para el cuarto trimestre de 2024, Li Auto espera entregas entre 160,000 y 170,000 vehículos e ingresos entre 43.2 y 45.9 mil millones de RMB.
리오토는 2024년 3분기 강력한 재무 결과를 보고하며, 총 수익이 429억 위안에 달했다 (61억 달러), 전년 대비 23.6% 증가했다고 밝혔다. 이 회사는 3분기에 152,831대의 차량을 인도했으며, 이는 전년 대비 45.4% 증가한 수치입니다. 차량 마진은 20.9%, 총 마진은 21.5%였습니다. 순이익은 28억 위안에 달했다 (4억 1,900만 달러). 이 회사는 2024년 10월까지 누적 차량 인도 수가 백만 대에 도달하는 중요한 이정표를 달성했습니다. 2024년 4분기에는 16만 대에서 17만 대의 차량 인도를 예상하고, 수익은 432억에서 459억 위안 사이로 예상하고 있습니다.
Li Auto a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des revenus totaux atteignant 42,9 milliards de RMB (6,1 milliards de dollars américains), en hausse de 23,6 % par rapport à l'année précédente. L'entreprise a livré 152 831 véhicules au troisième trimestre, représentant une augmentation de 45,4 % par rapport à l'année précédente. La marge sur véhicules était de 20,9 % et la marge brute s'élevait à 21,5 %. Le revenu net a atteint 2,8 milliards de RMB (401,9 millions de dollars américains). L'entreprise a atteint un jalon significatif de un million de livraisons cumulées de véhicules en octobre 2024. Pour le quatrième trimestre 2024, Li Auto s'attend à des livraisons comprises entre 160 000 et 170 000 véhicules et des revenus entre 43,2 et 45,9 milliards de RMB.
Li Auto berichtete über starke Finanzzahlen im dritten Quartal 2024, mit Gesamtumsätzen von 42,9 Milliarden RMB (6,1 Milliarden US-Dollar), was einem Anstieg von 23,6 % im Vergleich zum Vorjahr entspricht. Das Unternehmen lieferte 152.831 Fahrzeuge im dritten Quartal aus, was einen Anstieg von 45,4 % im Vergleich zum Vorjahr bedeutet. Die Fahrzeugmarge betrug 20,9 % und die Bruttomarge lag bei 21,5 %. Der Nettogewinn erreichte 2,8 Milliarden RMB (401,9 Millionen US-Dollar). Das Unternehmen erreichte einen bedeutenden Meilenstein von einer Million kumulierten Fahrzeugauslieferungen im Oktober 2024. Für das vierte Quartal 2024 erwartet Li Auto Auslieferungen zwischen 160.000 und 170.000 Fahrzeugen und Umsätze zwischen 43,2 und 45,9 Milliarden RMB.
- Record quarterly deliveries of 152,831 vehicles, up 45.4% YoY
- Total revenues increased 23.6% YoY to RMB42.9 billion
- Strong vehicle margin of 20.9% and gross margin of 21.5%
- Operating income grew 46.7% YoY to RMB3.4 billion
- Positive operating cash flow of RMB11.0 billion
- Vehicle margin slightly decreased from 21.2% to 20.9% YoY
- Operating expenses increased 9.2% YoY to RMB5.8 billion
- Net cash from operations decreased 24% YoY to RMB11.0 billion
Insights
Li Auto delivered outstanding Q3 2024 results with
Key positives include robust vehicle margin at
Q4 2024 guidance suggests continued momentum with expected deliveries of 160,000-170,000 vehicles. The achievement of 1 million cumulative deliveries milestone in just 58 months demonstrates Li Auto's strong market position in China's premium NEV segment.
Li Auto's rapid retail network expansion to 479 stores across 145 cities, combined with 894 super charging stations, creates a strong competitive moat. The company's focus on premium positioning and technological advancement through regular OTA updates enhances brand value and customer loyalty.
The company's strategic investments in autonomous driving technology and consistent high safety ratings (G+ rating for Li MEGA and Li L6) strengthen its market positioning. The MSCI ESG AAA rating for the second consecutive year appeals to ESG-focused investors and indicates strong corporate governance.
Quarterly total revenues reached RMB42.9 billion (US
Quarterly deliveries reached 152,831 vehicles
BEIJING, China, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced its unaudited financial results for the quarter ended September 30, 2024.
Operating Highlights for the Third Quarter of 2024
- Total deliveries for the third quarter of 2024 were 152,831 vehicles, representing a
45.4% year-over-year increase.
| 2024 Q3 | 2024 Q2 | 2024 Q1 | 2023 Q4 | |||||||
| Deliveries | 152,831 | 108,581 | 80,400 | 131,805 | ||||||
| 2023 Q3 | 2023 Q2 | 2023 Q1 | 2022 Q4 | |||||||
| Deliveries | 105,108 | 86,533 | 52,584 | 46,319 | ||||||
- As of September 30, 2024, in China, the Company had 479 retail stores in 145 cities, 436 servicing centers and Li Auto-authorized body and paint shops operating in 221 cities, and 894 super charging stations in operation equipped with 4,286 charging stalls.
Financial Highlights for the Third Quarter of 2024
- Vehicle sales were RMB41.3 billion (US
$5.9 billion ) in the third quarter of 2024, representing an increase of22.9% from RMB33.6 billion in the third quarter of 2023 and an increase of36.3% from RMB30.3 billion in the second quarter of 2024.
- Vehicle margin2 was
20.9% in the third quarter of 2024, compared with21.2% in the third quarter of 2023 and18.7% in the second quarter of 2024.
- Total revenues were RMB42.9 billion (US
$6.1 billion ) in the third quarter of 2024, representing an increase of23.6% from RMB34.7 billion in the third quarter of 2023 and an increase of35.3% from RMB31.7 billion in the second quarter of 2024.
- Gross profit was RMB9.2 billion (US
$1.3 billion ) in the third quarter of 2024, representing an increase of20.7% from RMB7.6 billion in the third quarter of 2023 and an increase of49.3% from RMB6.2 billion in the second quarter of 2024.
- Gross margin was
21.5% in the third quarter of 2024, compared with22.0% in the third quarter of 2023 and19.5% in the second quarter of 2024.
- Operating expenses were RMB5.8 billion (US
$825.4 million ) in the third quarter of 2024, representing an increase of9.2% from RMB5.3 billion in the third quarter of 2023 and an increase of1.5% from RMB5.7 billion in the second quarter of 2024.
- Income from operations was RMB3.4 billion (US
$489.2 million ) in the third quarter of 2024, representing an increase of46.7% from RMB2.3 billion in the third quarter of 2023 and an increase of633.4% from RMB468.0 million in the second quarter of 2024.
- Operating margin was
8.0% in the third quarter of 2024, compared with6.7% in the third quarter of 2023 and1.5% in the second quarter of 2024.
- Net income was RMB2.8 billion (US
$401.9 million ) in the third quarter of 2024, representing an increase of0.3% from RMB2.8 billion in the third quarter of 2023 and an increase of156.2% from RMB1.1 billion in the second quarter of 2024. Non-GAAP net income3 was RMB3.9 billion (US$548.8 million ) in the third quarter of 2024, representing an increase of11.1% from RMB3.5 billion in the third quarter of 2023 and an increase of156.2% from RMB1.5 billion in the second quarter of 2024.
- Diluted net earnings per ADS4 attributable to ordinary shareholders was RMB2.66 (US
$0.38) in the third quarter of 2024, compared with RMB2.67 in the third quarter of 2023 and RMB1.05 in the second quarter of 2024. Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders was RMB3.63 (US$0.52) in the third quarter of 2024, compared with RMB3.29 in the third quarter of 2023 and RMB1.42 in the second quarter of 2024.
- Net cash provided by operating activities was RMB11.0 billion (US
$1.6 billion ) in the third quarter of 2024, compared with RMB14.5 billion net cash provided by operating activities in the third quarter of 2023 and RMB429.4 million net cash used in operating activities in the second quarter of 2024.
- Free cash flow5 was RMB9.1 billion (US
$1.3 billion ) in the third quarter of 2024, compared with RMB13.2 billion in the third quarter of 2023 and negative RMB1.9 billion in the second quarter of 2024.
Key Financial Results
(in millions, except for percentages and per ADS data)
| For the Three Months Ended | % Change6 | ||||||||||
| September 30, 2023 | June 30, 2024 | September 30, 2024 | YoY | QoQ | |||||||
| RMB | RMB | RMB | |||||||||
| Vehicle sales | 33,616.1 | 30,319.7 | 41,323.8 | ||||||||
| Vehicle margin | (0.3)pts | 2.2pts | |||||||||
| Total revenues | 34,679.5 | 31,678.4 | 42,874.2 | ||||||||
| Gross profit | 7,644.5 | 6,176.9 | 9,224.7 | ||||||||
| Gross margin | (0.5)pts | 2.0pts | |||||||||
| Operating expenses | (5,305.1) | (5,708.9) | (5,792.0) | ||||||||
| Income from operations | 2,339.4 | 468.0 | 3,432.7 | ||||||||
| Operating margin | 1.3pts | 6.5pts | |||||||||
| Net income | 2,812.9 | 1,100.9 | 2,820.5 | ||||||||
| Non-GAAP net income | 3,467.3 | 1,503.1 | 3,851.0 | ||||||||
| Diluted net earnings per ADS attributable to ordinary shareholders | 2.67 | 1.05 | 2.66 | (0.4)% | |||||||
| Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders | 3.29 | 1.42 | 3.63 | ||||||||
| Net cash provided by/(used in) operating activities | 14,506.5 | (429.4) | 11,024.6 | (24.0)% | N/A | ||||||
| Free cash flow (non-GAAP) | 13,224.8 | (1,852.7) | 9,051.8 | (31.6)% | N/A | ||||||
Recent Developments
One Million Deliveries Milestone
- On October 18, 2024, the Company hit the one million cumulative vehicle deliveries milestone, becoming the first emerging new energy automotive brand in China to reach this benchmark. Notably, the Company hit this milestone just 58 months after delivering its first vehicle in December 2019.
OTA 6.4 Update
- In October 2024, the Company released the OTA update version 6.4 for Li MEGA and the Li L series, significantly enhancing the user experience with a range of new and upgraded autonomous driving, smart space, and smart electric features. With this update, the Company also rolled out its latest autonomous driving solution, which integrates an end-to-end (E2E) model and a vision-language model (VLM), on a full scale to over 320,000 Li AD Max users. Additionally, “Li Xiang Tong Xue” has evolved further with an upgraded voice model and a newly added eye tracking function, along with several other features, enabling more natural and human-like interaction with users.
Safety and Health Assessment Results
- In September 2024, Li MEGA and Li L6 successfully passed the China Insurance Automotive Safety Index (C-IASI) crash tests, adhering to the latest assessment protocols. Both models received a “G+” rating – the highest safety rating – across occupant safety, pedestrian safety, and assistance safety categories and an “A” rating in the crashworthiness and repair economy category. Notably, Li MEGA became the first MPV to receive a “G” rating in crash tests of
25% frontal offset impact on both the driver and the passenger sides under C-IASI’s latest assessment protocols.
- In September 2024, Li L6 received a record-setting overall score under the latest assessment protocols of the China Automobile Health Index (C-AHI) assessment conducted by the China Automotive Engineering Research Institute Co., Ltd. Li L6 received the highest ratings across all three categories assessed: the Clean Air Index, the Health Protection Index, and the Energy Efficiency and Emission Index.
Environmental, Social, and Governance (ESG) Performance
- In September 2024, the Company was awarded the highest “AAA” rating by MSCI ESG Research for the second consecutive year, recognizing its excellence in key areas such as corporate governance, product quality and safety, clean technologies, and its commitment to sustainable development and social responsibility.
CEO and CFO Comments
Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, “We achieved record-breaking deliveries in the third quarter, further cementing our leadership among Chinese automotive brands in the RMB200,000 and above NEV market. In October, we celebrated a major milestone: one million cumulative deliveries, a first for emerging new energy automotive brands in China. These remarkable results highlighted our rapidly growing brand influence and users’ strong recognition of our advancements in intelligentization. As our vehicle deliveries continue to grow, we are creating a virtuous cycle of innovation and advancement, driving the intelligentization of Li Auto vehicles to new heights. Notably, our latest autonomous driving solution, which integrates an end-to-end (E2E) model and a vision-language model (VLM), received overwhelmingly positive feedback from test users. In October, we rolled out this new solution on a full scale to over 320,000 Li AD Max users. Looking ahead, we remain committed to harnessing the power of technology to drive innovation, reinforcing our position as an industry leader as we continue to grow alongside our over one million user families.”
Mr. Tie Li, chief financial officer of Li Auto, added, “In the third quarter, we maintained our robust business performance. Our record vehicle deliveries boosted revenues to a historic high of RMB42.9 billion, representing an increase of
Financial Results for the Third Quarter of 2024
Revenues
- Total revenues were RMB42.9 billion (US
$6.1 billion ) in the third quarter of 2024, representing an increase of23.6% from RMB34.7 billion in the third quarter of 2023 and an increase of35.3% from RMB31.7 billion in the second quarter of 2024.
- Vehicle sales were RMB41.3 billion (US
$5.9 billion ) in the third quarter of 2024, representing an increase of22.9% from RMB33.6 billion in the third quarter of 2023 and an increase of36.3% from RMB30.3 billion in the second quarter of 2024. The increase in revenue from vehicle sales over the third quarter of 2023 and second quarter of 2024 was primarily attributable to the increase in vehicle deliveries, partially offset by the lower average selling price mainly due to different product mix.
- Other sales and services were RMB1.6 billion (US
$220.9 million ) in the third quarter of 2024, representing an increase of45.8% from RMB1.1 billion in the third quarter of 2023 and an increase of14.1% from RMB1.4 billion in the second quarter of 2024. The increase in revenue from other sales and services over the third quarter of 2023 and second quarter of 2024 was mainly attributable to the increased provision of services and sales of accessories, which is in line with higher accumulated vehicle sales, and increased sales of embedded products and services offered together with vehicle sales, which is in line with higher vehicle deliveries.
Cost of Sales and Gross Margin
- Cost of sales was RMB33.6 billion (US
$4.8 billion ) in the third quarter of 2024, representing an increase of24.5% from RMB27.0 billion in the third quarter of 2023 and an increase of32.0% from RMB25.5 billion in the second quarter of 2024. The increase in cost of sales over the third quarter of 2023 and second quarter of 2024 was mainly attributable to increase in vehicle deliveries, partially offset by the lower average cost of sales due to different product mix and cost reduction.
- Gross profit was RMB9.2 billion (US
$1.3 billion ) in the third quarter of 2024, representing an increase of20.7% from RMB7.6 billion in the third quarter of 2023 and an increase of49.3% from RMB6.2 billion in the second quarter of 2024.
- Vehicle margin was
20.9% in the third quarter of 2024, compared with21.2% in the third quarter of 2023 and18.7% in the second quarter of 2024. The vehicle margin remained relatively stable over the third quarter of 2023. The increase in vehicle margin over the second quarter of 2024 was mainly due to cost reduction, partially offset by lower average selling price mainly due to different product mix.
- Gross margin was
21.5% in the third quarter of 2024, compared with22.0% in the third quarter of 2023 and19.5% in the second quarter of 2024. The gross margin remained relatively stable over the third quarter of 2023. The increase in gross margin over the second quarter of 2024 was mainly due to the increase in vehicle margin.
Operating Expenses
- Operating expenses were RMB5.8 billion (US
$825.4 million ) in the third quarter of 2024, representing an increase of9.2% from RMB5.3 billion in the third quarter of 2023 and an increase of1.5% from RMB5.7 billion in the second quarter of 2024.
- Research and development expenses were RMB2.6 billion (US
$368.6 million ) in the third quarter of 2024, representing a decrease of8.2% from RMB2.8 billion in the third quarter of 2023 and a decrease of14.6% from RMB3.0 billion in the second quarter of 2024. The decrease in research and development expenses over the third quarter of 2023 and second quarter of 2024 was mainly attributable to decreased design and development costs for new products and technologies, and decreased employee compensation.
- Selling, general and administrative expenses were RMB3.4 billion (US
$478.7 million ) in the third quarter of 2024, representing an increase of32.1% from RMB2.5 billion in the third quarter of 2023 and an increase of19.3% from RMB2.8 billion in the second quarter of 2024. The increase in selling, general and administrative expenses over the third quarter of 2023 and second quarter of 2024 was primarily due to increased employee compensation associated with the recognition of share-based compensation expenses regarding the chief executive officer’s performance-based awards in the third quarter of 2024 as the achievement of the related performance condition was deemed probable as well as the growth in the number of staff.
Income from Operations
- Income from operations was RMB3.4 billion (US
$489.2 million ) in the third quarter of 2024, representing an increase of46.7% from RMB2.3 billion in the third quarter of 2023 and an increase of633.4% from RMB468.0 million in the second quarter of 2024. Operating margin was8.0% in the third quarter of 2024, compared with6.7% in the third quarter of 2023 and1.5% in the second quarter of 2024. Non-GAAP income from operations was RMB4.5 billion (US$636.0 million ) in the third quarter of 2024, representing an increase of49.1% from RMB3.0 billion in the third quarter of 2023 and an increase of412.9% from RMB870.1 million in the second quarter of 2024.
Net Income and Net Earnings Per Share
- Net income was RMB2.8 billion (US
$401.9 million ) in the third quarter of 2024, representing an increase of0.3% from RMB2.8 billion in the third quarter of 2023 and an increase of156.2% from RMB1.1 billion in the second quarter of 2024. Non-GAAP net income was RMB3.9 billion (US$548.8 million ) in the third quarter of 2024, representing an increase of11.1% from RMB3.5 billion in the third quarter of 2023 and an increase of156.2% from RMB1.5 billion in the second quarter of 2024.
- Basic and diluted net earnings per ADS attributable to ordinary shareholders were RMB2.82 (US
$0.40) and RMB2.66 (US$0.38) in the third quarter of 2024, respectively, compared with RMB2.86 and RMB2.67 in the third quarter of 2023, respectively, and RMB1.11 and RMB1.05 in the second quarter of 2024, respectively. Non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders were RMB3.85 (US$0.55) and RMB3.63 (US$0.52) in the third quarter of 2024, respectively, compared with RMB3.53 and RMB3.29 in the third quarter of 2023, respectively, and RMB1.51 and RMB1.42 in the second quarter of 2024, respectively.
Cash Position, Operating Cash Flow and Free Cash Flow
- Cash position7 was RMB106.5 billion (US
$15.2 billion ) as of September 30, 2024.
- Net cash provided by operating activities was RMB11.0 billion (US
$1.6 billion ) in the third quarter of 2024, compared with RMB14.5 billion net cash provided by operating activities in the third quarter of 2023 and RMB429.4 million net cash used in operating activities in the second quarter of 2024. The change in net cash provided by operating activities over the third quarter of 2023 was mainly due to increased payment related to inventory purchase, partially offset by the increase in cash received from customers. The change in net cash provided by operating activities over the second quarter of 2024 was mainly due to the increase in cash received from customers as a result of the increase in vehicle deliveries.
- Free cash flow was RMB9.1 billion (US
$1.3 billion ) in the third quarter of 2024, compared with RMB13.2 billion in the third quarter of 2023 and negative RMB1.9 billion in the second quarter of 2024.
Business Outlook
For the fourth quarter of 2024, the Company expects:
- Deliveries of vehicles to be between 160,000 and 170,000 vehicles, representing a year-over-year increase of
21.4% to29.0% .
- Total revenues to be between RMB43.2 billion (US
$6.2 billion ) and RMB45.9 billion (US$6.5 billion ), representing a year-over-year increase of3.5% to10.0% .
This business outlook reflects the Company’s current and preliminary views on its business situation and market conditions, which are subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Thursday, October 31, 2024 (8:00 p.m. Beijing/Hong Kong Time on October 31, 2024) to discuss financial results and answer questions from investors and analysts.
For participants who wish to join the call, please complete online registration using the link provided below prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, passcode, and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference instantly.
Participant Online Registration: https://s1.c-conf.com/diamondpass/10042773-bt4saz.html
A replay of the conference call will be accessible through November 7, 2024, by dialing the following numbers:
| United States: | +1-855-883-1031 |
| Mainland China: | +86-400-1209-216 |
| Hong Kong, China: | +852-800-930-639 |
| International: | +61-7-3107-6325 |
| Replay PIN: | 10042773 |
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.lixiang.com.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as non-GAAP cost of sales, non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP income from operations, non-GAAP net income, non-GAAP net income attributable to ordinary shareholders, non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders, non-GAAP basic and diluted net earnings per share attributable to ordinary shareholders and free cash flow, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses and release of valuation allowance on deferred tax assets, 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 financial information 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 Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this press release.
Exchange Rate Information
This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made at a rate of RMB7.0176 to US
About Li Auto Inc.
Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is: Create a Mobile Home, Create Happiness (创造移动的家, 创造幸福的家). Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer in successfully commercializing extended-range electric vehicles in China. While firmly advancing along this technological route, it builds platforms for battery electric vehicles in parallel. The Company leverages technology to create value for users. It concentrates its in-house development efforts on proprietary range extension systems, innovative electric vehicle technologies, and smart vehicle solutions. The Company started volume production in November 2019. Its current model lineup includes Li MEGA, a high-tech flagship family MPV, Li L9, a six-seat flagship family SUV, Li L8, a six-seat premium family SUV, Li L7, a five-seat flagship family SUV, and Li L6, a five-seat premium family SUV. The Company will continue to expand its product lineup to target a broader user base.
For more information, please visit: https://ir.lixiang.com.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to,” “challenges,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, 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: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles and high-power charging battery electric vehicles; Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
Li Auto Inc.
Investor Relations
Email: ir@lixiang.com
Christensen Advisory
Roger Hu
Tel: +86-10-5900-1548
Email: Li@christensencomms.com
| Li Auto Inc. Unaudited Condensed Consolidated Statements of Comprehensive Income | |||||||||
| (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) | |||||||||
| For the Three Months Ended | |||||||||
| September 30, 2023 | June 30, 2024 | September 30, 2024 | September 30, 2024 | ||||||
| RMB | RMB | RMB | US$ | ||||||
| Revenues: | |||||||||
| Vehicle sales | 33,616,140 | 30,319,728 | 41,323,833 | 5,888,599 | |||||
| Other sales and services | 1,063,315 | 1,358,668 | 1,550,385 | 220,928 | |||||
| Total revenues | 34,679,455 | 31,678,396 | 42,874,218 | 6,109,527 | |||||
| Cost of sales: | |||||||||
| Vehicle sales | (26,491,089) | (24,635,504) | (32,671,723) | (4,655,683) | |||||
| Other sales and services | (543,882) | (865,950) | (977,822) | (139,339) | |||||
| Total cost of sales | (27,034,971) | (25,501,454) | (33,649,545) | (4,795,022) | |||||
| Gross profit | 7,644,484 | 6,176,942 | 9,224,673 | 1,314,505 | |||||
| Operating expenses: | |||||||||
| Research and development | (2,817,206) | (3,027,581) | (2,586,534) | (368,578) | |||||
| Selling, general and administrative | (2,543,770) | (2,815,105) | (3,359,640) | (478,745) | |||||
| Other operating income, net | 55,870 | 133,773 | 154,174 | 21,970 | |||||
| Total operating expenses | (5,305,106) | (5,708,913) | (5,792,000) | (825,353) | |||||
| Income from operations | 2,339,378 | 468,029 | 3,432,673 | 489,152 | |||||
| Other (expense)/income: | |||||||||
| Interest expense | (11,698) | (43,231) | (54,167) | (7,719) | |||||
| Interest income and investment income, net | 439,800 | 370,034 | (21,979) | (3,132) | |||||
| Others, net | 183,585 | 383,237 | 43,752 | 6,235 | |||||
| Income before income tax | 2,951,065 | 1,178,069 | 3,400,279 | 484,536 | |||||
| Income tax expense | (138,191) | (77,129) | (579,789) | (82,619) | |||||
| Net income | 2,812,874 | 1,100,940 | 2,820,490 | 401,917 | |||||
| Less: Net (loss)/income attributable to noncontrolling interests | (10,357) | (1,653) | 6,228 | 887 | |||||
| Net income attributable to ordinary shareholders of Li Auto Inc. | 2,823,231 | 1,102,593 | 2,814,262 | 401,030 | |||||
| Net income | 2,812,874 | 1,100,940 | 2,820,490 | 401,917 | |||||
| Other comprehensive income/(loss) | |||||||||
| Foreign currency translation adjustment, net of tax | 21,998 | 12,444 | (136,283) | (19,420) | |||||
| Total other comprehensive income/(loss) | 21,998 | 12,444 | (136,283) | (19,420) | |||||
| Total comprehensive income | 2,834,872 | 1,113,384 | 2,684,207 | 382,497 | |||||
| Less: Net (loss)/income attributable to noncontrolling interests | (10,357) | (1,653) | 6,228 | 887 | |||||
| Comprehensive income attributable to ordinary shareholders of Li Auto Inc. | 2,845,229 | 1,115,037 | 2,677,979 | 381,610 | |||||
| Weighted average number of ADSs | |||||||||
| Basic | 985,819,450 | 994,833,579 | 997,934,606 | 997,934,606 | |||||
| Diluted | 1,059,821,062 | 1,062,428,185 | 1,062,727,888 | 1,062,727,888 | |||||
| Net earnings per ADS attributable to ordinary shareholders | |||||||||
| Basic | 2.86 | 1.11 | 2.82 | 0.40 | |||||
| Diluted | 2.67 | 1.05 | 2.66 | 0.38 | |||||
| Weighted average number of ordinary shares | |||||||||
| Basic | 1,971,638,899 | 1,989,667,158 | 1,995,869,212 | 1,995,869,212 | |||||
| Diluted | 2,119,642,125 | 2,124,856,370 | 2,125,455,776 | 2,125,455,776 | |||||
| Net earnings per share attributable to ordinary shareholders | |||||||||
| Basic | 1.43 | 0.55 | 1.41 | 0.20 | |||||
| Diluted | 1.34 | 0.52 | 1.33 | 0.19 | |||||
| Li Auto Inc. Unaudited Condensed Consolidated Balance Sheets | |||||||
| (All amounts in thousands) | |||||||
| As of | |||||||
| December 31, 2023 | September 30, 2024 | September 30, 2024 | |||||
| RMB | RMB | US$ | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | 91,329,030 | 77,588,229 | 11,056,234 | ||||
| Restricted cash | 479 | 5,225 | 745 | ||||
| Time deposits and short-term investments | 11,933,255 | 28,948,584 | 4,125,140 | ||||
| Trade receivable | 143,523 | 220,385 | 31,405 | ||||
| Inventories | 6,871,979 | 8,182,199 | 1,165,954 | ||||
| Prepayments and other current assets | 4,247,318 | 4,805,064 | 684,716 | ||||
| Total current assets | 114,525,584 | 119,749,686 | 17,064,194 | ||||
| Non-current assets: | |||||||
| Long-term investments | 1,595,376 | 1,029,625 | 146,720 | ||||
| Property, plant and equipment, net | 15,745,018 | 21,353,936 | 3,042,912 | ||||
| Operating lease right-of-use assets, net | 5,939,230 | 7,263,129 | 1,034,988 | ||||
| Intangible assets, net | 864,180 | 910,477 | 129,742 | ||||
| Goodwill | 5,484 | 5,484 | 781 | ||||
| Deferred tax assets | 1,990,245 | 2,408,771 | 343,247 | ||||
| Other non-current assets | 2,802,354 | 2,099,568 | 299,186 | ||||
| Total non-current assets | 28,941,887 | 35,070,990 | 4,997,576 | ||||
| Total assets | 143,467,471 | 154,820,676 | 22,061,770 | ||||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Short-term borrowings | 6,975,399 | 942,483 | 134,303 | ||||
| Trade and notes payable | 51,870,097 | 52,002,660 | 7,410,320 | ||||
| Amounts due to related parties | 10,607 | 10,815 | 1,541 | ||||
| Deferred revenue, current | 1,525,543 | 1,693,321 | 241,296 | ||||
| Operating lease liabilities, current | 1,146,437 | 1,246,896 | 177,681 | ||||
| Finance lease liabilities, current | — | 72,670 | 10,355 | ||||
| Accruals and other current liabilities | 11,214,626 | 11,993,326 | 1,709,037 | ||||
| Total current liabilities | 72,742,709 | 67,962,171 | 9,684,533 | ||||
| Non-current liabilities: | |||||||
| Long-term borrowings | 1,747,070 | 7,938,390 | 1,131,212 | ||||
| Deferred revenue, non-current | 812,218 | 738,930 | 105,297 | ||||
| Operating lease liabilities, non-current | 3,677,961 | 4,828,599 | 688,070 | ||||
| Finance lease liabilities, non-current | — | 661,432 | 94,253 | ||||
| Deferred tax liabilities | 200,877 | 387,682 | 55,244 | ||||
| Other non-current liabilities | 3,711,414 | 5,272,970 | 751,392 | ||||
| Total non-current liabilities | 10,149,540 | 19,828,003 | 2,825,468 | ||||
| Total liabilities | 82,892,249 | 87,790,174 | 12,510,001 | ||||
| Total Li Auto Inc. shareholders’ equity | 60,142,624 | 66,594,761 | 9,489,676 | ||||
| Noncontrolling interests | 432,598 | 435,741 | 62,093 | ||||
| Total shareholders’ equity | 60,575,222 | 67,030,502 | 9,551,769 | ||||
| Total liabilities and shareholders’ equity | 143,467,471 | 154,820,676 | 22,061,770 | ||||
| Li Auto Inc. Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||
| (All amounts in thousands) | ||||||||||
| For the Three Months Ended | ||||||||||
| September 30, 2023 | June 30, 2024 | September 30, 2024 | September 30, 2024 | |||||||
| RMB | RMB | RMB | US$ | |||||||
| Net cash provided by/(used in) operating activities | 14,506,532 | (429,397) | 11,024,642 | 1,570,999 | ||||||
| Net cash used in investing activities | (4,424,152) | (3,839,308) | (14,212,597) | (2,025,279) | ||||||
| Net cash provided by/(used in) financing activities | 1,371,433 | (104,743) | 238,305 | 33,958 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (20,252) | 32,257 | (245,692) | (35,010) | ||||||
| Net change in cash, cash equivalents and restricted cash | 11,433,561 | (4,341,191) | (3,195,342) | (455,332) | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 62,255,649 | 85,129,987 | 80,788,796 | 11,512,311 | ||||||
| Cash, cash equivalents and restricted cash at end of period | 73,689,210 | 80,788,796 | 77,593,454 | 11,056,979 | ||||||
| Net cash provided by/(used in) operating activities | 14,506,532 | (429,397) | 11,024,642 | 1,570,999 | ||||||
| Capital expenditures | (1,281,759) | (1,423,332) | (1,972,878) | (281,133) | ||||||
| Free cash flow (non-GAAP) | 13,224,773 | (1,852,729) | 9,051,764 | 1,289,866 | ||||||
| Li Auto Inc. Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results | |||||||||
| (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) | |||||||||
| For the Three Months Ended | |||||||||
| September 30, 2023 | June 30, 2024 | September 30, 2024 | September 30, 2024 | ||||||
| RMB | RMB | RMB | US$ | ||||||
| Cost of sales | (27,034,971) | (25,501,454) | (33,649,545) | (4,795,022) | |||||
| Share-based compensation expenses | 10,662 | 7,652 | 8,213 | 1,170 | |||||
| Non-GAAP cost of sales | (27,024,309) | (25,493,802) | (33,641,332) | (4,793,852) | |||||
| Research and development expenses | (2,817,206) | (3,027,581) | (2,586,534) | (368,578) | |||||
| Share-based compensation expenses | 431,294 | 224,332 | 296,778 | 42,291 | |||||
| Non-GAAP research and development expenses | (2,385,912) | (2,803,249) | (2,289,756) | (326,287) | |||||
| Selling, general and administrative expenses | (2,543,770) | (2,815,105) | (3,359,640) | (478,745) | |||||
| Share-based compensation expenses | 212,443 | 170,129 | 725,500 | 103,383 | |||||
| Non-GAAP selling, general and administrative expenses | (2,331,327) | (2,644,976) | (2,634,140) | (375,362) | |||||
| Income from operations | 2,339,378 | 468,029 | 3,432,673 | 489,152 | |||||
| Share-based compensation expenses | 654,399 | 402,113 | 1,030,491 | 146,844 | |||||
| Non-GAAP income from operations | 2,993,777 | 870,142 | 4,463,164 | 635,996 | |||||
| Net income | 2,812,874 | 1,100,940 | 2,820,490 | 401,917 | |||||
| Share-based compensation expenses | 654,399 | 402,113 | 1,030,491 | 146,844 | |||||
| Non-GAAP net income | 3,467,273 | 1,503,053 | 3,850,981 | 548,761 | |||||
| Net income attributable to ordinary shareholders of Li Auto Inc. | 2,823,231 | 1,102,593 | 2,814,262 | 401,030 | |||||
| Share-based compensation expenses | 654,399 | 402,113 | 1,030,491 | 146,844 | |||||
| Non-GAAP net income attributable to ordinary shareholders of Li Auto Inc. | 3,477,630 | 1,504,706 | 3,844,753 | 547,874 | |||||
| Weighted average number of ADSs | |||||||||
| Basic | 985,819,450 | 994,833,579 | 997,934,606 | 997,934,606 | |||||
| Diluted | 1,059,821,062 | 1,062,428,185 | 1,062,727,888 | 1,062,727,888 | |||||
| Non-GAAP net earnings per ADS attributable to ordinary shareholders | |||||||||
| Basic | 3.53 | 1.51 | 3.85 | 0.55 | |||||
| Diluted | 3.29 | 1.42 | 3.63 | 0.52 | |||||
| Weighted average number of ordinary shares | |||||||||
| Basic | 1,971,638,899 | 1,989,667,158 | 1,995,869,212 | 1,995,869,212 | |||||
| Diluted | 2,119,642,125 | 2,124,856,370 | 2,125,455,776 | 2,125,455,776 | |||||
| Non-GAAP net earnings per share attributable to ordinary shareholders8 | |||||||||
| Basic | 1.76 | 0.76 | 1.93 | 0.27 | |||||
| Diluted | 1.64 | 0.71 | 1.81 | 0.26 | |||||
___________________________
1 All translations from Renminbi (“RMB”) to U.S. dollars (“US$”) are made at a rate of RMB7.0176 to US
2 Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.
3 The Company’s non-GAAP financial measures exclude share-based compensation expenses and release of valuation allowance on deferred tax assets. See “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this press release.
4 Each ADS represents two Class A ordinary shares.
5 Free cash flow represents operating cash flow less capital expenditures, which is considered a non-GAAP financial measure.
6 Except for vehicle margin, gross margin, and operating margin, where absolute changes instead of percentage changes are presented.
7 Cash position includes cash and cash equivalents, restricted cash, time deposits and short-term investments, and long-term time deposits and financial instruments included in long-term investments.
8 Non-GAAP basic net earnings per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net earnings per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effects of convertible senior notes as determined under the if-converted method and the dilutive effect of share-based awards as determined under the treasury stock method.
FAQ
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