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Li Auto Inc. Announces Unaudited First Quarter 2024 Financial Results

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Quarterly total revenues reached RMB25.6 billion (US$3.6 billion)1
Quarterly deliveries reached 80,400 vehicles

BEIJING, China, May 20, 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 March 31, 2024.

Operating Highlights for the First Quarter of 2024

    2024 Q1   2023 Q4   2023 Q3   2023 Q2
Deliveries   80,400   131,805   105,108   86,533
                 
    2023 Q1   2022 Q4   2022 Q3   2022 Q2
Deliveries   52,584   46,319   26,524   28,687  

Financial Highlights for the First Quarter of 2024

Key Financial Results

(in millions, except for percentages and per ADS data)
 
  For the Three Months Ended   % Change6  
  March 31,
2023		   December 31,
2023		   March 31,
2024		   YoY   QoQ  
  RMB   RMB   RMB          
Vehicle sales 18,327.3   40,379.3   24,251.6   32.3%   (39.9)%  
Vehicle margin 19.8%   22.7%   19.3%   (0.5)pts   (3.4)pts  
                     
Total revenues 18,787.1   41,732.1   25,633.7   36.4%   (38.6)%  
Gross profit 3,830.1   9,786.9   5,284.3   38.0%   (46.0)%  
Gross margin 20.4%   23.5%   20.6%   0.2pts   (2.9)pts  
                     
Operating expenses (3,424.9)   (6,750.5)   (5,869.2)   71.4%   (13.1)%  
Income/(Loss) from operations 405.2   3,036.4   (584.9)   N/A   N/A  
Operating margin 2.2%   7.3%   (2.3)%   (4.5)pts   (9.6)pts  
                     
Net income 933.8   5,752.3   591.1   (36.7)%   (89.7)%  
Non-GAAP net income 1,414.1   4,588.7   1,276.4   (9.7)%   (72.2)%  
                     
Diluted net earnings per ADS attributable to ordinary shareholders 0.89   5.32   0.56   (37.1)%   (89.5)%  
Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders 1.35   4.23   1.21   (10.4)%   (71.4)%  
                     
Net cash provided by/(used in) operating activities 7,780.4   17,294.2   (3,342.4)   N/A   N/A  
Free cash flow (non-GAAP) 6,702.1   14,638.1   (5,055.2)   N/A   N/A  
                     

Recent Developments

Delivery Update

New Model Launches

2023 Environmental, Social and Governance Report

CEO and CFO Comments

Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, “In the first quarter of 2024, our deliveries reached 80,400 vehicles, up 52.9% year over year, further solidifying Li Auto’s leadership position in the RMB300,000 and higher NEV market in China. In March, we launched and commenced delivery of our high-tech flagship family MPV, Li MEGA, which is also our first high-power charging BEV. Meanwhile, we accelerated our efforts to deploy super charging stations nationwide, adding charging resources for Li Auto users to expedite the 0-to-1 development phase of our high-power charging BEVs. In April, we launched and commenced delivery of Li L6, a five-seat premium family SUV, to satisfy the mobility needs of more young families, making all-wheel-drive range extension system and intelligent features available on vehicles priced below RMB300,000. As our company continues to grow amidst an ever-changing market landscape, we will embrace the twists and turns that the journey presents and consistently focus on enhancing operating efficiency while persistently creating incremental user value.”

Mr. Tie Li, chief financial officer of Li Auto, added, “Despite the rollout of a new model, product iterations, and pricing adjustments, our first quarter financial results remained solid. Our revenue reached RMB25.6 billion for the period, growing by 36.4% year over year, and our gross margin stayed healthy at 20.6%. While our first quarter deliveries fluctuated sequentially, we remain confident that our deliveries will continue to grow in the coming quarters. In line with this outlook, we have maintained the pace of our investments in research and development and sales and servicing network. Looking ahead, we will continue to rigorously evaluate and streamline our operations while being fully centered on users and products, driving progress toward our long-term goals and strategic vision amidst a competitive market.”

Financial Results for the First Quarter of 2024

Revenues

Cost of Sales and Gross Margin

Operating Expenses

(Loss)/Income from Operations

Net Income and Net Earnings Per Share

Cash Position, Operating Cash Flow and Free Cash Flow

Business Outlook

For the second quarter of 2024, the Company expects:

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 Monday, May 20, 2024 (8:00 p.m. Beijing/Hong Kong Time on May 20, 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/10038704-ogh75Er.html

A replay of the conference call will be accessible through May 27, 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: 10038704
   

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 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 RMB7.2203 to US$1.00, the exchange rate on March 29, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

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 to successfully commercialize extended-range electric vehicles in China. 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 leverages technology to create value for its users. It concentrates its in-house development efforts on its proprietary range extension system, next-generation electric vehicle technology, and smart vehicle solutions while expanding its product line by developing new BEVs and EREVs 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

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  
    March 31, 2023   December 31, 2023   March 31, 2024   March 31, 2024  
    RMB   RMB   RMB   US$  
Revenues:                  
Vehicle sales   18,327,316   40,379,267   24,251,553   3,358,801  
Other sales and services   459,737   1,352,830   1,382,107   191,420  
Total revenues   18,787,053   41,732,097   25,633,660   3,550,221  
Cost of sales:                  
Vehicle sales   (14,705,143)   (31,202,028)   (19,561,658)   (2,709,258)  
Other sales and services   (251,804)   (743,186)   (787,697)   (109,095)  
Total cost of sales   (14,956,947)   (31,945,214)   (20,349,355)   (2,818,353)  
Gross profit   3,830,106   9,786,883   5,284,305   731,868  
Operating expense:                  
Research and development   (1,852,297)   (3,491,026)   (3,048,886)   (422,266)  
Selling, general and administrative   (1,645,307)   (3,269,668)   (2,977,585)   (412,391)  
Other operating income, net   72,701   10,237   157,264   21,781  
Total operating expenses   (3,424,903)   (6,750,457)   (5,869,207)   (812,876)  
Income/(Loss) from operations   405,203   3,036,426   (584,902)   (81,008)  
Other (expense)/income:                  
Interest expense   (32,438)   (13,675)   (28,598)   (3,961)  
Interest income and investment income, net   418,531   794,355   1,068,888   148,039  
Others, net   181,488   358,825   220,184   30,495  
Income before income tax   972,784   4,175,931   675,572   93,565  
Income tax (expense)/benefit   (38,947)   1,576,385   (84,446)   (11,696)  
Net income   933,837   5,752,316   591,126   81,869  
Less: Net income/(loss) attributable to noncontrolling interests   4,169   94,235   (1,432)   (198)  
Net income attributable to ordinary shareholders of Li Auto Inc.   929,668   5,658,081   592,558   82,067  
                   
Net income   933,837   5,752,316   591,126   81,869  
Other comprehensive income/(loss)                  
Foreign currency translation adjustment, net of tax   27,607   40,438   (59,936)   (8,301)  
Total other comprehensive income/(loss)   27,607   40,438   (59,936)   (8,301)  
Total comprehensive income   961,444   5,792,754   531,190   73,568  
Less: Net income/(loss) attributable to noncontrolling interests   4,169   94,235   (1,432)   (198)  
Comprehensive income attributable to ordinary shareholders of Li Auto Inc.   957,275   5,698,519   532,622   73,766  
Weighted average number of ADSs                  
Basic   979,166,653   989,909,259   993,308,654   993,308,654  
Diluted   1,052,402,047   1,064,538,392   1,066,436,872   1,066,436,872  
Net earnings per ADS attributable to ordinary shareholders                  
Basic   0.95   5.72   0.60   0.08  
Diluted   0.89   5.32   0.56   0.08  
Weighted average number of ordinary shares                  
Basic   1,958,333,306   1,979,818,518   1,986,617,307   1,986,617,307  
Diluted   2,104,804,095   2,129,076,784   2,132,873,744   2,132,873,744  
Net earnings per share attributable to ordinary shareholders                  
Basic   0.47   2.86   0.30   0.04  
Diluted   0.45   2.66   0.28   0.04  
Li Auto Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
 
        As of    
    December 31, 2023   March 31, 2024   March 31, 2024
    RMB   RMB   US$
ASSETS            
Current assets:            
Cash and cash equivalents   91,329,030   85,124,762   11,789,643
Restricted cash   479   5,225   724
Time deposits and short-term investments   11,933,255   13,763,658   1,906,245
Trade receivable   143,523   77,255   10,700
Inventories   6,871,979   12,158,602   1,683,947
Prepayments and other current assets   4,247,318   4,525,497   626,774
Total current assets   114,525,584   115,654,999   16,018,033
Non-current assets:            
Long-term investments   1,595,376   1,545,525   214,053
Property, plant and equipment, net   15,745,018   20,323,916   2,814,830
Operating lease right-of-use assets, net   5,939,230   6,893,866   954,789
Intangible assets, net   864,180   880,571   121,958
Goodwill   5,484   5,484   760
Deferred tax assets   1,990,245   1,990,245   275,646
Other non-current assets   2,802,354   2,365,248   327,583
Total non-current assets   28,941,887   34,004,855   4,709,619
Total assets   143,467,471   149,659,854   20,727,652
LIABILITIES AND EQUITY            
Current liabilities:            
Short-term borrowings   6,975,399   7,136,525   988,397
Trade and notes payable   51,870,097   54,586,888   7,560,197
Amounts due to related parties   10,607   12,640   1,751
Deferred revenue, current   1,525,543   1,400,236   193,930
Operating lease liabilities, current   1,146,437   1,243,520   172,226
Finance lease liabilities, current   —   34,451   4,771
Accruals and other current liabilities   11,214,626   11,186,337   1,549,291
Total current liabilities   72,742,709   75,600,597   10,470,563
Non-current liabilities:            
Long-term borrowings   1,747,070   1,803,030   249,717
Deferred revenue, non-current   812,218   813,494   112,668
Operating lease liabilities, non-current   3,677,961   4,421,642   612,390
Finance lease liabilities, non-current   —   671,878   93,054
Deferred tax liabilities   200,877   200,877   27,821
Other non-current liabilities   3,711,414   4,354,846   603,139
Total non-current liabilities   10,149,540   12,265,767   1,698,789
Total liabilities   82,892,249   87,866,364   12,169,352
Total Li Auto Inc. shareholders’ equity   60,142,624   61,362,324   8,498,584
Noncontrolling interests   432,598   431,166   59,716
Total shareholders’ equity   60,575,222   61,793,490   8,558,300
Total liabilities and shareholders’ equity   143,467,471   149,659,854   20,727,652
Li Auto Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in thousands)
 
    For the Three Months Ended
    March 31,
2023		   December 31,
2023		   March 31,
2024		   March 31,
2024
    RMB   RMB   RMB   US$
Net cash provided by/(used in) operating activities   7,780,366   17,294,228   (3,342,386)   (462,915)
Net cash used in investing activities   (2,692,753)   (469,104)   (3,098,206)   (429,097)
Net cash (used in)/provided by financing activities   (195,821)   863,355   185,257   25,658
Effect of exchange rate changes on cash, cash equivalents and restricted cash   (25,241)   (48,180)   55,813   7,731
Net change in cash, cash equivalents and restricted cash   4,866,551   17,640,299   (6,199,522)   (858,623)
Cash, cash equivalents and restricted cash at beginning of period   40,418,158   73,689,210   91,329,509   12,648,990
Cash, cash equivalents and restricted cash at end of period   45,284,709   91,329,509   85,129,987   11,790,367
                 
Net cash provided by/(used in) operating activities   7,780,366   17,294,228   (3,342,386)   (462,915)
Capital expenditures   (1,078,295)   (2,656,106)   (1,712,843)   (237,226)
Free cash flow (non-GAAP)   6,702,071   14,638,122   (5,055,229)   (700,141)
Li Auto Inc.
Unaudited Reconciliation of 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
    March 31,
2023		   December 31,
2023		   March 31,
2024		   March 31,
2024
    RMB   RMB   RMB   US$
Cost of sales   (14,956,947)   (31,945,214)   (20,349,355)   (2,818,353)
Share-based compensation expenses   11,186   15,334   13,469   1,865
Non-GAAP cost of sales   (14,945,761)   (31,929,880)   (20,335,886)   (2,816,488)
                 
Research and development expenses   (1,852,297)   (3,491,026)   (3,048,886)   (422,266)
Share-based compensation expenses   336,220   537,843   433,764   60,076
Non-GAAP research and development expenses   (1,516,077)   (2,953,183)   (2,615,122)   (362,190)
                 
Selling, general and administrative expenses   (1,645,307)   (3,269,668)   (2,977,585)   (412,391)
Share-based compensation expenses   132,823   273,443   237,994   32,962
Non-GAAP selling, general and administrative expenses   (1,512,484)   (2,996,225)   (2,739,591)   (379,429)
                 
Income/(Loss) from operations   405,203   3,036,426   (584,902)   (81,008)
Share-based compensation expenses   480,229   826,620   685,227   94,903
Non-GAAP income from operations   885,432   3,863,046   100,325   13,895
                 
Net income   933,837   5,752,316   591,126   81,869
Share-based compensation expenses   480,229   826,620   685,227   94,903
Release of valuation allowance on deferred tax assets   —   (1,990,245)   —   —
Non-GAAP net income   1,414,066   4,588,691   1,276,353   176,772
                 
Net income attributable to ordinary shareholders of Li Auto Inc.   929,668   5,658,081   592,558   82,067
Share-based compensation expenses   480,229   826,620   685,227   94,903
Release of valuation allowance on deferred tax assets   —   (1,990,245)   —   —
Non-GAAP net income attributable to ordinary shareholders of Li Auto Inc.   1,409,897   4,494,456   1,277,785   176,970
                 
Weighted average number of ADSs                
Basic   979,166,653   989,909,259   993,308,654   993,308,654
Diluted   1,052,402,047   1,064,538,392   1,066,436,872   1,066,436,872
Non-GAAP net earnings per ADS attributable to ordinary shareholders                
Basic   1.44   4.54   1.29   0.18
Diluted   1.35   4.23   1.21   0.17
Weighted average number of ordinary shares                
Basic   1,958,333,306   1,979,818,518   1,986,617,307   1,986,617,307
Diluted   2,104,804,095   2,129,076,784   2,132,873,744   2,132,873,744
Non-GAAP net earnings per share attributable to ordinary shareholders8                
Basic   0.72   2.27   0.64   0.09
Diluted   0.67   2.11   0.60   0.08
                 

________________________________

1All translations from Renminbi (“RMB”) to U.S. dollars (“US$”) are made at a rate of RMB7.2203 to US$1.00, the exchange rate on March 29, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.

2 Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.

3The Company’s non-GAAP financial measures exclude share-based compensation expenses and release of valuation allowance on deferred tax assets. See “Unaudited Reconciliation of 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.

6Except 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.

8Non-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.


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