Bay Street News

Li Auto Inc. Announces Unaudited Fourth Quarter and Full Year 2023 Financial Results

Bay Street

Quarterly total revenues reached RMB41.73 billion (US$5.88 billion)1
Quarterly deliveries reached 131,805 vehicles
Full year total revenues reached RMB123.85 billion (US$17.44 billion)
Full year deliveries were 376,030 vehicles

BEIJING, China, Feb. 26, 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 and full year ended December 31, 2023.

Operating Highlights for the Fourth Quarter of 2023 and Full Year 2023

  FY 2023   2023 Q4   2023 Q3   2023 Q2   2023 Q1  
Deliveries 376,030   131,805   105,108   86,533   52,584  
                     
  FY 2022   2022 Q4   2022 Q3   2022 Q2   2022 Q1  
 Deliveries  133,246   46,319   26,524   28,687   31,716  
 

Financial Highlights for the Fourth Quarter of 2023

Key Financial Results

(in millions, except for percentages and per ADS data)
  For the Three Months Ended   % Change6      
  December 31,
2022		   September 30,
2023		   December 31,
2023		   YoY   QoQ  
  RMB   RMB   RMB          
Vehicle sales 17,268.3   33,616.1   40,379.3   133.8%   20.1%  
Vehicle margin 20.0%   21.2%   22.7%   2.7pts   1.5pts  
                     
Total revenues 17,649.9   34,679.5   41,732.1   136.4%   20.3%  
Gross profit 3,566.3   7,644.5   9,786.9   174.4%   28.0%  
Gross margin 20.2%   22.0%   23.5%   3.3pts   1.5pts  
                     
Operating expenses (3,700.0)   (5,305.1)   (6,750.5)   82.4%   27.2%  
(Loss)/Income from operations (133.6)   2,339.4   3,036.4   N/A   29.8%  
Operating margin (0.8)%   6.7%   7.3%   8.1pts   0.6pts  
                     
Net income 265.3   2,812.9   5,752.3   2,068.2%   104.5%  
Non-GAAP net income 967.6   3,467.3   4,588.7   374.2%   32.3%  
                     
Diluted net earnings per ADS attributable to ordinary shareholders 0.25   2.67   5.32   2,028.0%   99.3%  
Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders 0.93   3.29   4.23   354.8%   28.6%  
                     
Net cash provided by operating activities 4,925.4   14,506.5   17,294.2   251.1%   19.2%  
Free cash flow (non-GAAP) 3,257.3   13,224.8   14,638.1   349.4%   10.7%  

Financial Highlights for the Full Year 2023

Key Financial Results

(in millions, except for percentages and per ADS data)
  For the Year Ended   % Change
  December 31,
2022		   December 31,
2023		   YoY
  RMB   RMB    
Vehicle sales 44,106.4   120,294.7   172.7%
Vehicle margin 19.1%   21.5%   2.4pts
           
Total revenues 45,286.8   123,851.3   173.5%
Gross profit 8,790.5   27,496.8   212.8%
Gross margin 19.4%   22.2%   2.8pts
           
Operating expenses (12,445.3)   (20,089.9)   61.4%
(Loss)/Income from operations (3,654.9)   7,406.9   N/A
Operating margin (8.1)%   6.0%   14.1pts
           
Net (loss)/income (2,032.3)   11,809.1   N/A
Non-GAAP net income 20.8   12,197.6   58,494.3%
           
Diluted net (loss)/earnings per ADS attributable to ordinary shareholders (2.07)   11.10   N/A
Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders 0.04   11.46   28,550.0%
           
Net cash provided by operating activities 7,380.3   50,693.5   586.9%
Free cash flow (non-GAAP) 2,252.4   44,186.3   1,861.8%

Recent Developments

Delivery Update

OTA 5.0 Upgrade

Inclusion in the Hang Seng Index

CEO and CFO Comments

Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, “Undeterred by the fiercely competitive NEV market in 2023, Li Auto achieved an outstanding performance with its three Li L series models. Full-year deliveries grew by 182.2%, reaching 376,030 vehicles, making us the best-selling brand among NEVs priced above RMB300,000 in China. In December, we released the OTA version 5.0 for Li L series. With comprehensive enhancement in autonomous driving and smart space, we bring even more exceptional experience to family users. With our significantly increasing scale, continued research and development advancement, and consistently improving operating efficiency throughout the year, 2023 marks our best financial performance yet, setting a solid foundation for Li Auto’s growth to diversify its product matrix and cater to a broader range of user needs in 2024.”

Mr. Tie Li, chief financial officer of Li Auto, added, “We ended the year with another robust performance in the fourth quarter, setting historical highs across multiple financial metrics. Record-high vehicle deliveries fueled the fourth-quarter revenue to a year-over-year increase of 136.4% to RMB41.73 billion, while full-year revenue surged by 173.5% year over year to RMB123.85 billion. With the expansion of business scale and the optimization of production, supply, and sales coordination, our gross margin reached 23.5% in the fourth quarter, and the annual gross margin was 22.2%. Notably, 2023 is our first year of profitability, with a healthy full-year net income reaching RMB11.81 billion. As of the end of 2023, our cash reserve reached RMB103.67 billion. In 2024, healthy profitability and capital strength will support Li Auto to further strengthen research and development, expand business scale, and lead the rapid transformation of China’s NEV market.”

Financial Results for the Fourth Quarter of 2023

Revenues

Cost of Sales and Gross Margin

Operating Expenses

Income/(Loss) from Operations

Net Income and Net Earnings Per Share

Cash Position, Operating Cash Flow and Free Cash Flow

Financial Results for the Full Year 2023

Revenues

Cost of Sales and Gross Margin

Operating Expenses

Income/(Loss) from Operations

Net Income/(Loss) and Net Earnings/(Loss) Per Share

Operating Cash Flow and Free Cash Flow

Employees

Business Outlook

For the first 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 7:00 a.m. U.S. Eastern Time on Monday, February 26, 2024 (8:00 p.m. Beijing/Hong Kong Time on February 26, 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/10036557-1tqjis.html

A replay of the conference call will be accessible through March 4, 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: 10036557

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lixiang.com.

Non-GAAP Financial Measure

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/loss 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 RMB7.0999 to US$1.00, the exchange rate on December 29, 2023, 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, and Li L8, a six-seat premium family SUV, as well as Li L7, a five-seat flagship 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

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
       +86-10-6508-0677
Email: Li@tpg-ir.com

Li Auto Inc.
Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
    For the Three Months Ended   For the Year Ended  
    December 31,
2022		   September 30,
2023		   December 31,
2023		   December 31,
2023		   December 31,
2022		   December 31,
2023		   December 31,
2023		  
    RMB   RMB   RMB   US$   RMB   RMB   US$  
Revenues:                              
Vehicle sales   17,268,330   33,616,140   40,379,267   5,687,301   44,106,434   120,294,667   16,943,150  
Other sales and services   381,544   1,063,315   1,352,830   190,542   1,180,382   3,556,665   500,946  
Total revenues   17,649,874   34,679,455   41,732,097   5,877,843   45,286,816   123,851,332   17,444,096  
Cost of sales:                              
Vehicle sales   (13,818,255)   (26,491,089)   (31,202,028)   (4,394,714)   (35,688,343)   (94,482,347)   (13,307,560)  
Other sales and services   (265,288)   (543,882)   (743,186)   (104,676)   (808,017)   (1,872,234)   (263,699)  
Total cost of sales   (14,083,543)   (27,034,971)   (31,945,214)   (4,499,390)   (36,496,360)   (96,354,581)   (13,571,259)  
Gross profit   3,566,331   7,644,484   9,786,883   1,378,453   8,790,456   27,496,751   3,872,837  
Operating expense:                              
Research and development   (2,070,091)   (2,817,206)   (3,491,026)   (491,701)   (6,780,032)   (10,586,129)   (1,491,025)  
Selling, general and administrative   (1,629,859)   (2,543,770)   (3,269,668)   (460,523)   (5,665,301)   (9,767,955)   (1,375,788)  
Other operating income, net   —   55,870   10,237   1,442   —   264,210   37,213  
Total operating expenses   (3,699,950)   (5,305,106)   (6,750,457)   (950,782)   (12,445,333)   (20,089,874)   (2,829,600)  
(Loss)/Income from operations   (133,619)   2,339,378   3,036,426   427,671   (3,654,877)   7,406,877   1,043,237  
Other (expense)/income:                              
Interest expense   (38,393)   (11,698)   (13,675)   (1,926)   (106,340)   (86,251)   (12,148)  
Interest income and investment income, net   255,772   439,800   794,355   111,883   976,229   2,082,948   293,377  
Others, net   84,706   183,585   358,825   50,539   625,633   1,048,189   147,634  
Income/(Loss) before income tax   168,466   2,951,065   4,175,931   588,167   (2,159,355)   10,451,763   1,472,100  
Income tax benefit/(expense)   96,836   (138,191)   1,576,385   222,029   127,007   1,357,362   191,180  
Net income/(loss)   265,302   2,812,874   5,752,316   810,196   (2,032,348)   11,809,125   1,663,280  
Less: Net income/(loss) attributable to noncontrolling interests   8,364   (10,357)   94,235   13,273   (20,133)   104,992   14,788  
Net income/(loss) attributable to ordinary shareholders of Li Auto Inc.   256,938   2,823,231   5,658,081   796,923   (2,012,215)   11,704,133   1,648,492  
                               
Net income/(loss)   265,302   2,812,874   5,752,316   810,196   (2,032,348)   11,809,125   1,663,280  
Other comprehensive income/(loss)                              
Foreign currency translation adjustment, net of tax   42,097   21,998   40,438   5,696   1,327,761   (30,766)   (4,333)  
Total other comprehensive income/(loss)   42,097   21,998   40,438   5,696   1,327,761   (30,766)   (4,333)  
Total comprehensive income/(loss)   307,399   2,834,872   5,792,754   815,892   (704,587)   11,778,359   1,658,947  
Less: Net income/(loss) attributable to noncontrolling interests   8,364   (10,357)   94,235   13,273   (20,133)   104,992   14,788  
Comprehensive income/(loss) attributable to ordinary shareholders of Li Auto Inc.   299,035   2,845,229   5,698,519   802,619   (684,454)   11,673,367   1,644,159  
Weighted average number of ADSs                              
Basic   976,970,967   985,819,450   989,909,259   989,909,259   970,615,499   983,931,880   983,931,880  
Diluted   1,045,583,572   1,059,821,062   1,064,538,392   1,064,538,392   970,615,499   1,057,688,196   1,057,688,196  
Net earnings/(loss) per ADS attributable to ordinary shareholders                              
Basic   0.26   2.86   5.72   0.81   (2.07)   11.90   1.68  
Diluted   0.25   2.67   5.32   0.75   (2.07)   11.10   1.56  
Weighted average number of ordinary shares                              
Basic   1,953,941,934   1,971,638,899   1,979,818,518   1,979,818,518   1,941,230,998   1,967,863,759   1,967,863,759  
Diluted   2,091,167,144   2,119,642,125   2,129,076,784   2,129,076,784   1,941,230,998   2,115,376,392   2,115,376,392  
Net earnings/(loss) per share attributable to ordinary shareholders                              
Basic   0.13   1.43   2.86   0.40   (1.04)   5.95   0.84  
Diluted   0.13   1.34   2.66   0.37   (1.04)   5.55   0.78  
Li Auto Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
        As of      
    December 31, 2022   December 31, 2023   December 31, 2023  
    RMB   RMB   US$  
ASSETS              
Current assets:              
Cash and cash equivalents   38,478,016   91,329,030   12,863,425  
Restricted cash   1,940,142   479   67  
Time deposits and short-term investments   18,031,395   11,933,255   1,680,764  
Trade receivable   48,381   143,523   20,215  
Inventories   6,804,693   6,871,979   967,898  
Prepayments and other current assets   1,689,860   4,247,318   598,222  
Total current assets   66,992,487   114,525,584   16,130,591  
Non-current assets:              
Long-term investments   1,484,491   1,595,376   224,704  
Property, plant and equipment, net   11,187,898   15,745,018   2,217,639  
Operating lease right-of-use assets, net   3,538,911   5,939,230   836,523  
Intangible assets, net   832,620   864,180   121,717  
Goodwill   5,484   5,484   772  
Deferred tax assets   74,767   1,990,245   280,320  
Other non-current assets   2,421,293   2,802,354   394,704  
Total non-current assets   19,545,464   28,941,887   4,076,379  
Total assets   86,537,951   143,467,471   20,206,970  
LIABILITIES AND EQUITY              
Current liabilities:              
Short‑term borrowings   390,750   6,975,399   982,464  
Trade and notes payable   20,024,329   51,870,097   7,305,750  
Amounts due to related parties   7,190   10,607   1,494  
Deferred revenue, current   569,234   1,525,543   214,868  
Operating lease liabilities, current   696,454   1,146,437   161,472  
Accruals and other current liabilities   5,684,644   11,214,626   1,579,547  
Total current liabilities   27,372,601   72,742,709   10,245,595  
Non-current liabilities:              
Long-term borrowings   9,230,807   1,747,070   246,070  
Deferred revenue, non-current   581,598   812,218   114,399  
Operating lease liabilities, non-current   1,946,367   3,677,961   518,030  
Deferred tax liabilities   77,809   200,877   28,293  
Other non-current liabilities   2,142,462   3,711,414   522,742  
Total non-current liabilities   13,979,043   10,149,540   1,429,534  
Total liabilities   41,351,644   82,892,249   11,675,129  
Total Li Auto Inc. shareholders’ equity   44,858,701   60,142,624   8,470,911  
Noncontrolling interests   327,606   432,598   60,930  
Total shareholders’ equity   45,186,307   60,575,222   8,531,841  
Total liabilities and shareholders’ equity   86,537,951   143,467,471   20,206,970  
Li Auto Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in thousands)
    For the Three Months Ended   For the Year Ended  
    December 31,
2022		   September 30,
2023		   December 31,
2023		   December 31,
2023		   December 31,
2022		   December 31,
2023		   December 31,
2023		  
    RMB   RMB   RMB   US$   RMB   RMB   US$  
Net cash provided by operating activities   4,925,350   14,506,532   17,294,228   2,435,841   7,380,266   50,693,521   7,140,033  
Net cash used in investing activities   (5,308,274)   (4,424,152)   (469,104)   (66,072)   (4,364,661)   (12,068)   (1,700)  
Net cash provided by financing activities   251,024   1,371,433   863,355   121,601   5,639,392   185,385   26,111  
Effect of exchange rate changes   (19,686)   (20,252)   (48,180)   (6,786)   1,270,097   44,513   6,270  
Net change in cash, cash equivalents and restricted cash   (151,586)   11,433,561   17,640,299   2,484,584   9,925,094   50,911,351   7,170,714  
Cash, cash equivalents and restricted cash at beginning of period   40,569,744   62,255,649   73,689,210   10,378,908   30,493,064   40,418,158   5,692,778  
Cash, cash equivalents and restricted cash at end of period   40,418,158   73,689,210   91,329,509   12,863,492   40,418,158   91,329,509   12,863,492  
                               
Net cash provided by operating activities   4,925,350   14,506,532   17,294,228   2,435,841   7,380,266   50,693,521   7,140,033  
Capital expenditures   (1,668,021)   (1,281,759)   (2,656,106)   (374,105)   (5,127,900)   (6,507,189)   (916,518)  
Free cash flow (non-GAAP)   3,257,329   13,224,773   14,638,122   2,061,736   2,252,366   44,186,332   6,223,515  
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   For the Year Ended  
    December 31,
2022		   September 30,
2023		   December 31,
2023		   December 31,
2023		   December 31,
2022		   December 31,
2023		   December 31,
2023		  
    RMB   RMB   RMB   US$   RMB   RMB   US$  
Cost of sales   (14,083,543)   (27,034,971)   (31,945,214)   (4,499,390)   (36,496,360)   (96,354,581)   (13,571,259)  
Share-based compensation expenses   16,644   10,662   15,334   2,160   44,845   46,631   6,568  
Non-GAAP cost of sales   (14,066,899)   (27,024,309)   (31,929,880)   (4,497,230)   (36,451,515)   (96,307,950)   (13,564,691)  
                               
Research and development expenses   (2,070,091)   (2,817,206)   (3,491,026)   (491,701)   (6,780,032)   (10,586,129)   (1,491,025)  
Share-based compensation expenses   476,522   431,294   537,843   75,754   1,333,710   1,552,421   218,654  
Non-GAAP research and development expenses   (1,593,569)   (2,385,912)   (2,953,183)   (415,947)   (5,446,322)   (9,033,708)   (1,272,371)  
                               
Selling, general and administrative expenses   (1,629,859)   (2,543,770)   (3,269,668)   (460,523)   (5,665,301)   (9,767,955)   (1,375,788)  
Share-based compensation expenses   209,135   212,443   273,443   38,514   674,610   779,637   109,810  
Non-GAAP selling, general and administrative expenses   (1,420,724)   (2,331,327)   (2,996,225)   (422,009)   (4,990,691)   (8,988,318)   (1,265,978)  
                               
(Loss)/Income from operations   (133,619)   2,339,378   3,036,426   427,671   (3,654,877)   7,406,877   1,043,237  
Share-based compensation expenses   702,301   654,399   826,620   116,428   2,053,165   2,378,689   335,031  
Non-GAAP income/(loss) from operations   568,682   2,993,777   3,863,046   544,099   (1,601,712)   9,785,566   1,378,268  
                               
Net income/(loss)   265,302   2,812,874   5,752,316   810,196   (2,032,348)   11,809,125   1,663,280  
Share-based compensation expenses   702,301   654,399   826,620   116,428   2,053,165   2,378,689   335,031  
Release of valuation allowance on deferred tax assets   —   —   (1,990,245)   (280,320)   —   (1,990,245)   (280,320)  
Non-GAAP net income   967,603   3,467,273   4,588,691   646,304   20,817   12,197,569   1,717,991  
                               
Net income/(loss) attributable to ordinary shareholders of Li Auto Inc.   256,938   2,823,231   5,658,081   796,923   (2,012,215)   11,704,133   1,648,492  
Share-based compensation expenses   702,301   654,399   826,620   116,428   2,053,165   2,378,689   335,031  
Release of valuation allowance on deferred tax assets   —   —   (1,990,245)   (280,320)   —   (1,990,245)   (280,320)  
Non-GAAP net income attributable to ordinary shareholders of Li Auto Inc.   959,239   3,477,630   4,494,456   633,031   40,950   12,092,577   1,703,203  
                               
Weighted average number of ADSs                              
Basic   976,970,967   985,819,450   989,909,259   989,909,259   970,615,499   983,931,880   983,931,880  
Diluted   1,045,583,572   1,059,821,062   1,064,538,392   1,064,538,392   1,016,365,275   1,057,688,196   1,057,688,196  
Non-GAAP net earnings per ADS attributable to ordinary shareholders                              
Basic   0.98   3.53   4.54   0.64   0.04   12.29   1.73  
Diluted   0.93   3.29   4.23   0.60   0.04   11.46   1.61  
Weighted average number of ordinary shares                              
Basic   1,953,941,934   1,971,638,899   1,979,818,518   1,979,818,518   1,941,230,998   1,967,863,759   1,967,863,759  
Diluted   2,091,167,144   2,119,642,125   2,129,076,784   2,129,076,784   2,032,730,550   2,115,376,392   2,115,376,392  
Non-GAAP net earnings per share attributable to ordinary shareholders8                              
Basic   0.49   1.76   2.27   0.32   0.02   6.15   0.87  
Diluted   0.46   1.64   2.11   0.30   0.02   5.73   0.81  

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1 All translations from Renminbi (“RMB”) to U.S. dollars (“US$”) are made at a rate of RMB7.0999 to US$1.00, the exchange rate on December 29, 2023 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.

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 GAAP and Non-GAAP Results” set forth at the end of this press release.

4 Each ADS represents two Class A ordinary shares.

5Free 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 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, 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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