- Li Auto reported a net income of RMB 646.6 million for the first quarter, up 9.4 percent year-on-year.
- The gross margin for the first quarter was 20.5 percent, largely flat from the same period last year and the fourth quarter.
Li Auto (NASDAQ: LI) saw a solid year-on-year increase in net income last quarter, despite a flat revenue, as sales expenses declined.
The company reported a net income of RMB 646.6 million ($89.1 million) in the first quarter, up 9.4 percent year-on-year, though down 81.7 percent from the fourth quarter of 2024, according to its unaudited financial results released today.
The company reported a non-GAAP net income of RMB 1 billion in the first quarter, down 20.5 percent year-on-year and down 74.9 percent from the fourth quarter of 2024.
Li Auto's first-quarter revenue was RMB 25.9 billion, exceeding the RMB 25.11 billion forecast by analysts in a Bloomberg survey and also surpassing the upper limit of its guidance range of RMB 23.4 billion to RMB 24.7 billion.
Revenue for the quarter increased by 1.1 percent year-on-year, despite a 41.4 percent decrease from the fourth quarter of 2024.
First-quarter vehicle sales revenue was RMB 24.7 billion, up 1.8 percent year-on-year but down 42.1 percent from the fourth quarter of 2024.
The increase in vehicle sales revenue compared to the first quarter of 2024 was primarily due to higher vehicle delivery volumes, but this growth was partially offset by a decline in average selling prices resulting from product mix differences.
The sequential decline was primarily due to a decrease in vehicle deliveries impacted by seasonal factors such as the Spring Festival holiday, it said.
Data already released showed that Li Auto delivered 92,864 vehicles in the first quarter, near the upper end of its previously guided range of 88,000 to 93,000 vehicles.
Deliveries for the quarter increased by 15.50 percent year-on-year but decreased by 41.48 percent compared to the fourth quarter of 2024.
Li Auto's gross margin for the first quarter was 20.5 percent, a decrease of 0.1 percentage points from the same period last year but an increase of 0.2 percentage points from the fourth quarter.
The company's vehicle margin for the first quarter was 19.8 percent, compared to 19.3 percent in the first quarter of 2024 and 19.7 percent in the fourth quarter of 2024.
The increase in vehicle margin compared to the first quarter of 2024 was primarily due to cost reductions and pricing strategy adjustments in the first quarter of 2024, but this growth was partially offset by product mix adjustments, Li Auto said.
The company's R&D expenses for the first quarter were RMB 2.5 billion, a year-on-year decrease of 17.5 percent, but an increase of 4.4 percent compared to the fourth quarter of 2024.
The decrease in R&D expenses compared to the first quarter of 2024 was primarily due to reduced employee compensation and the impact of the pace of new vehicle project development.
In the first quarter, selling, general, and administrative (SG&A) expenses totaled RMB 2.5 billion, a year-on-year decrease of 15.0 percent and a decrease of 17.7 percent compared to the fourth quarter of 2024.
These decreases were primarily due to reduced employee compensation, improved operational efficiency, and reduced marketing and promotional activities, Li Auto said.
It reported a negative free cash flow of RMB 2.5 billion in the first quarter, a decrease of 49.9 percent from the negative RMB 5.1 billion in the first quarter of 2024, while the free cash flow in the fourth quarter of 2024 was RMB 6.1 billion.
As of March 31, its cash position was RMB 110.7 billion.
Li Auto guided second-quarter vehicle deliveries to be between 123,000 and 128,000 units, representing a year-on-year increase of 13.3 percent to 17.9 percent.
This guidance implies that Li Auto is expecting to deliver a total of 89,061 to 94,061 vehicles in May and June, taking into account the 33,939 vehicles delivered in April.
The company guided second-quarter revenue to be between RMB 32.5 billion ($4.5 billion) and RMB 33.8 billion, representing a year-on-year increase of 2.5 percent to 6.7 percent.
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