Li Auto expects third-quarter vehicle deliveries to be in the range of 100,000 to 103,000 units, implying year-on-year growth of 277.0 percent to 288.3 percent.
Li Auto (NASDAQ: LI) posted earnings that beat expectations as it saw strong vehicle deliveries in the second quarter.
The company reported record revenue of RMB 28.65 billion ($3.95 billion) in the second quarter, beating market expectations of RMB 27.25 billion, according to unaudited financial results released today.
This represents a year-on-year increase of 228.18 percent and a 52.47 percent increase from the first quarter, exceeding the upper end of the previously guided range of RMB 24.22 billion to RMB 25.86 billion.
Li Auto delivered 86,533 vehicles in the second quarter, exceeding the upper end of the guidance range of 76,000 to 81,000 vehicles. This represents a year-on-year growth of 201.65 percent and an increase of 64.56 percent over the first quarter.
The company's revenue from vehicle sales in the second quarter was RMB 27.97 billion, an increase of 229.7 percent year-on-year and 52.6 percent from the first quarter. This was mainly due to an increase in vehicle deliveries, partially offset by a lower average selling price due to a different product mix in the two quarters, the company said.
Li Auto's second-quarter net income was RMB 2.31 billion, compared with a net loss of RMB 641 million in the second quarter of 202, an increase of 147.4 percent from the first-quarter net income of RMB 933.8 million.
It reported non-GAAP net income of RMB 2.73 billion in the second quarter, compared to a non-GAAP net loss of RMB 183.4 million in the second quarter of 2022, an increase of 92.9 percent from non-GAAP net income of RMB 1.41 billion in the first quarter.
The company reported second-quarter basic and diluted net income per ADS attributable to ordinary shareholders of RMB 2.34 and RMB 2.18, respectively.
Its non-GAAP basic and diluted net income per ADS for the second quarter was RMB 2.76 and RMB 2.58, respectively.
Li Auto's gross margin was 21.8 percent in the second quarter, compared to 21.5 percent in the second quarter of 2022 and 20.4 percent in the first quarter.
It had a vehicle margin of 21.0 percent in the second quarter, compared to 21.2 percent in the second quarter of 2022 and 19.8 percent in the first quarter.
Excluding the impact of the Li One, the Li L-series' vehicle margin remained stable in the second quarter, the company said.
Li Auto's research and development expenses for the second quarter were RMB 2.43 billion, an increase of 58.4 percent year-on-year and 31.0 percent from the first quarter.
The increase in R&D expenses in the second quarter was mainly due to higher employee compensation as a result of an increase in the number of employees, as well as higher expenses to support the company's expanding product portfolio and technologies, it said.
As of June 30, Li Auto's balance of cash and cash equivalents, restricted cash, time deposits and short-term investments amounted to RMB 73.77 billion.
Li Auto expects third-quarter vehicle deliveries to be in the range of 100,000 to 103,000 units, implying year-on-year growth of 277.0 percent to 288.3 percent.
Considering it delivered 34,134 vehicles in July, the guidance implies Li Auto expects to deliver a total of 65,866 to 68,866 vehicles in August and September.
It expects total revenue for the third quarter to be in the range of RMB 32.33 billion to RMB 33.30 billion, implying year-on-year growth of 246.0 percent to 256.4 percent.
