- Li Auto expects its vehicle deliveries in the first quarter to be between 88,000 and 93,000 units, below analysts' expectations of 130,914 units.
- The guidance means Li Auto expects March deliveries to be between 31,810 and 36,810 units.
Li Auto (NASDAQ: LI) reported in-line fourth-quarter revenue, with net income continuing to rebound from the previous quarter while gross margin slipped.
The Chinese automaker's revenue for the fourth quarter of 2024 came in at RMB 44.3 billion ($6.1 billion), in line with analysts' estimates of RMB 44.21 billion in a Bloomberg survey and within the guidance range of RMB 43.2 billion to RMB 45.9 billion.
That's up 6.1 percent from the fourth quarter of 2023 and up 3.3 percent from the third quarter of 2024, according to its unaudited earnings report released today.
The company's vehicle sales were RMB 42.6 billion in the fourth quarter of 2024, an increase of 5.6 percent from the fourth quarter of 2023 and an increase of 3.2 percent from the third quarter of 2024.
The increase in revenue was mainly attributed to higher vehicle deliveries, partially offset by lower average selling prices due to interest subsidies provided to customers, Li Auto said.
Previously released data showed Li Auto delivered 158,696 vehicles in the fourth quarter, below the lower end of its guidance range of 160,000 to 170,000 vehicles.
Deliveries for the quarter were up 20.40 percent year-on-year and up 3.84 percent from the third quarter.
Li Auto's net income for the fourth quarter was RMB 3.5 billion, an increase of 25.3 percent from the third quarter of 2024, but a decrease of 38.6 percent from the fourth quarter of 2023.
Non-GAAP net income for the fourth quarter of 2024 was RMB 4.0 billion, a decrease of 12.0 percent from the fourth quarter of 2023 and an increase of 4.9 percent from the third quarter of 2024.
It reported basic and diluted net income per ADS attributable to ordinary shareholders of RMB 3.52 and RMB 3.31, respectively, in the fourth quarter of 2024, compared to RMB 5.72 and RMB 5.32, respectively, in the same period of the prior year, and RMB 2.82 and RMB 2.66, respectively, in the third quarter of 2024.
It had a gross margin of 20.3 percent in the fourth quarter, compared to 23.5 percent in the fourth quarter of 2023 and 21.5 percent in the third quarter of 2024.
Vehicle margin was 19.7 percent in the fourth quarter of 2024 compared to 22.7 percent in the fourth quarter of 2023 and 20.9 percent in the third quarter of 2024.
The decrease in vehicle margin from the third quarter of 2024 was primarily due to losses on purchase commitment and lower average selling price due to interest subsidies provided to customers.
Li Auto's research and development (R&D) expenses were RMB 2.4 billion in the fourth quarter of 2024, a decrease of 31.0 percent from the fourth quarter of 2023 and a decrease of 6.9 percent from the third quarter of 2024.
The decrease in R&D expenses from the fourth quarter of 2023 was primarily attributable to a decrease in product portfolio and technology-related expenses and a decrease in employee compensation, while the decrease from the third quarter of 2024 was primarily attributable to a decrease in employee compensation.
The company's selling, general and administrative (SG&A) expenses were RMB 3.1 billion in the fourth quarter of 2024, a decrease of 5.9 percent from the fourth quarter of 2023 and a decrease of 8.4 percent from the third quarter of 2024.
The decrease from the third quarter of 2024 was mainly due to decreased employee compensation associated with the recognition of the chief executive officer's performance-based awards in the third quarter of 2024, partially offset by the increased marketing and promotional activities.
As of December 31, 2024, the company had a cash position of RMB 112.8 billion.
Li Auto guided its vehicle deliveries in the first quarter of 2025 to be in the range of 88,000 to 93,000 units, an increase of 9.5 percent to 15.7 percent year-on-year but below analysts' expectations of 130,914 units.
This means that the company expects March deliveries to be in the range of 31,810 to 36,810 vehicles, considering that it delivered 29,927 vehicles in January and 26,263 vehicles in February.
It guided first-quarter revenue to be in the range of RMB 23.4 billion to RMB 24.7 billion, a year-on-year decline of 8.7 percent to 3.5 percent, and below analysts' expectations of RMB 38.37 billion.
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