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 September 30,
2022.
Operating Highlights for the Third Quarter of
2022
- Total vehicle deliveries were
26,524 units in the third quarter of 2022, representing a 5.6%
year-over-year increase.
Deliveries |
2022 Q3 |
|
2022 Q2 |
|
2022 Q1 |
|
2021 Q4 |
|
26,524 |
|
28,687 |
|
31,716 |
|
35,221 |
|
|
|
|
|
|
|
|
|
|
Deliveries |
2021 Q3 |
|
2021 Q2 |
|
2021 Q1 |
|
2020 Q4 |
|
25,116 |
|
17,575 |
|
12,579 |
|
14,464 |
|
- As of September 30, 2022, the
Company had 271 retail stores covering 119 cities, as well as 316
servicing centers and Li Auto-authorized body and paint shops
operating in 226 cities.
Financial Highlights for the Third Quarter of
2022
- Vehicle sales were
RMB9.05 billion (US$1.27 billion) in the third quarter of 2022,
representing an increase of 22.5% from RMB7.39 billion in the third
quarter of 2021 and an increase of 6.6% from RMB8.48 billion in the
second quarter of 2022.
- Vehicle
margin2 was 12.0% in the third quarter of
2022, compared with 21.1% in the third quarter of 2021 and 21.2% in
the second quarter of 2022.
- Total revenues
were RMB9.34 billion (US$1.31 billion) in the third quarter of
2022, representing an increase of 20.2% from RMB7.78 billion in the
third quarter of 2021 and an increase of 7.0% from RMB8.73 billion
in the second quarter of 2022.
- Gross profit was
RMB1.18 billion (US$166.2 million) in the third quarter of 2022,
representing a decrease of 34.8% from RMB1.81 billion in the third
quarter of 2021 and a decrease of 37.1% from RMB1.88 billion in the
second quarter of 2022.
- Gross margin was
12.7% in the third quarter of 2022, compared with 23.3% in the
third quarter of 2021 and 21.5% in the second quarter of 2022.
- Loss from
operations was RMB2.13 billion (US$299.4 million) in the
third quarter of 2022, compared with RMB97.8 million in the third
quarter of 2021, and representing an increase of 117.6% from
RMB978.5 million in the second quarter of 2022. Non-GAAP
loss from operations3 was RMB1.72 billion
(US$242.4 million) in the third quarter of 2022, compared with
RMB259.4 million non-GAAP income from operations3 in the third
quarter of 2021, and representing an increase of 231.1% from
RMB520.8 million non-GAAP loss from operations in the second
quarter of 2022.
- Net loss was
RMB1.65 billion (US$231.3 million) in the third quarter of 2022,
compared with RMB21.5 million in the third quarter of 2021, and
representing an increase of 156.7% from RMB641.0 million in the
second quarter of 2022. Non-GAAP net
loss3 was RMB1.24 billion (US$174.4
million) in the third quarter of 2022, compared with RMB335.7
million non-GAAP net income3 in the third quarter of 2021 and
RMB183.4 million non-GAAP net loss in the second quarter of
2022.
- Net cash used in operating
activities was RMB508.3 million (US$71.5 million) in the
third quarter of 2022, compared with RMB2.17 billion net cash
provided by operating activities in the third quarter of 2021 and
RMB1.13 billion net cash provided by operating activities in the
second quarter of 2022.
- Free cash
flow4 was negative RMB1.96 billion
(negative US$275.3 million) in the third quarter of 2022, compared
with RMB1.16 billion free cash flow in the third quarter of 2021
and RMB451.7 million free cash flow in the second quarter of
2022.
Key
Financial Results |
(in millions,
except for percentages) |
|
For the Three Months Ended |
|
% Change5 |
|
September 30,2021 |
|
June 30,2022 |
|
September 30,2022 |
|
YoY |
|
QoQ |
|
RMB |
|
RMB |
|
RMB |
|
|
|
|
Vehicle sales |
7,385.8 |
|
8,483.6 |
|
9,045.9 |
|
22.5% |
|
6.6% |
Vehicle margin |
21.1% |
|
21.2% |
|
12.0% |
|
(9.1)% |
|
(9.2)% |
|
|
|
|
|
|
|
|
|
|
Total revenues |
7,775.2 |
|
8,732.6 |
|
9,342.3 |
|
20.2% |
|
7.0% |
Gross profit |
1,812.0 |
|
1,878.3 |
|
1,182.0 |
|
(34.8)% |
|
(37.1)% |
Gross margin |
23.3% |
|
21.5% |
|
12.7% |
|
(10.6)% |
|
(8.8)% |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
(97.8) |
|
(978.5) |
|
(2,129.7) |
|
N/A |
|
117.6% |
Non-GAAP income/(loss) from
operations |
259.4 |
|
(520.8) |
|
(1,724.4) |
|
N/A |
|
231.1% |
|
|
|
|
|
|
|
|
|
|
Net loss |
(21.5) |
|
(641.0) |
|
(1,645.7) |
|
N/A |
|
156.7% |
Non-GAAP net
income/(loss) |
335.7 |
|
(183.4) |
|
(1,240.4) |
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
Operating cash flow |
2,169.5 |
|
1,129.4 |
|
(508.3) |
|
N/A |
|
N/A |
Free cash flow |
1,165.0 |
|
451.7 |
|
(1,958.6) |
|
N/A |
|
N/A |
Recent Developments
Delivery Update
- In October 2022, the Company
delivered 10,052 vehicles, representing a 31.4% increase from
October 2021. In November 2022, the Company delivered 15,034
vehicles, representing a 11.5% increase from November 2021. As of
November 30, 2022, the Company had 276 retail stores covering 119
cities, in addition to 317 servicing centers and Li Auto-authorized
body and paint shops operating in 226 cities.
Li L8 and Li L7
- On September 30, 2022, the Company
officially launched Li L8, a six-seat premium family SUV, and
unveiled Li L7, a five-seat flagship family SUV. Both Li L8 and Li
L7 employ the Company’s new-generation all-wheel drive range
extension system and boast over 100 features in their standard
configurations. Both models are available in two trims, Pro and
Max, to provide users with flexible choices of smartness. The two
trims are harnessed with Li AD Pro and Li AD Max autonomous driving
systems, respectively. The former is powered by the Horizon
Robotics Journey 5 chip with 128 TOPS of computing power, while the
latter is powered by dual Orin-X chips with 508 TOPS of computing
power. In addition, the two trims are equipped with innovative
smart space systems, SS Pro and SS Max, featuring a first-row
four-screen interactive system and a five-screen, three-dimensional
interactive system, respectively.
Safety Evaluation Results
- In November 2022, the China
Insurance Automotive Safety Index (“C-IASI”) Management Center
published the safety evaluation results for Li L9 based on crash
tests. Li L9 achieved the G rating, the highest safety rating, in
three out of four evaluation categories — occupant safety,
pedestrian safety, and assistance safety. In the category of
crashworthiness and repair economy, Li L9 received an M rating, one
of the top results received by premium vehicles tested by C-IASI
since 2017. Notably, Li L9 is the first domestic full-size SUV
achieving the G rating in the crash tests of 25% frontal offset
impact on both the driver and the passenger sides.
Li Auto Power Semiconductor R&D and
Manufacturing Base
- Construction of the Li Auto Power
Semiconductor R&D and Manufacturing Base (the “Semiconductor
Base”) commenced in the high-tech zone of Suzhou, Jiangsu province
in the third quarter of 2022. The Semiconductor Base is being built
by Suzhou Sike Semiconductor (苏州斯科半导体), a company established by Li
Auto and Hunan Sanan Semiconductor (湖南三安半导体). It will focus on
in-house research and development and production of
automotive-grade power modules based on the third-generation
semiconductor material, silicon carbide (SiC). The power module is
a core component of the Company's self-developed 800-volt electric
drive system. This marks a key milestone in the Company’s ongoing
enhancement of its self-development capabilities and its extension
along the value chain into next-generation high-voltage electric
drive technology.
ESG Performance
- In September 2022, the Company
received an “AA” rating from MSCI ESG Research for the second
consecutive year, one of the highest MSCI ESG ratings among
automakers worldwide. It demonstrates the Company’s excellence in
making positive environmental and social impacts through its sound
governance structure and dedication to sustainable
development.
Inclusion in the Hang Seng China
Enterprises Index
- The Company has been included as a
constituent stock in the Hang Seng China Enterprises Index,
effective December 5, 2022. This is a strong recognition of the
Company’s strength and investment value.
At-The-Market Offering
- On June 28, 2022, the Company
announced an at-the-market offering program (the “ATM Offering”) to
sell up to US$2,000,000,000 of American depositary shares (“ADSs”),
each representing two Class A ordinary shares of the Company.As of
the date of this press release, the Company has sold 9,431,282 ADSs
representing 18,862,564 Class A ordinary shares of the Company
under the ATM Offering, raising gross proceeds of US$366.5 million
before deducting fees and commissions payable to the distribution
agents of up to US$4.8 million and certain other offering
expenses.
CEO and CFO Comments
Mr. Xiang Li, founder, chairman, and chief
executive officer of Li Auto, commented, “Fueled by our
comprehensive capabilities in R&D, supply chain, and
intelligent manufacturing, we executed on our product roadmap and
delivered another quarter with meaningful progress. Our Li L9
deliveries exceeded 10,000 in the first full month of its
production despite the uncertain macro environment and supply chain
disruptions. Li L9 has been the sales champion among full-size SUVs
in China since its deliveries started. Such a strong performance
demonstrated the wide recognition by family users and our team’s
formidable execution capabilities. Meanwhile, we forged ahead with
the launch of Li L8, the successor to Li ONE, and unveiled Li L7, a
five-seat flagship family SUV.”
“To create successful products, we have two core
goals. Firstly, for consumers, we choose to exceed their needs
rather than merely meeting them. Secondly, as a company, we aim to
achieve healthy gross margin and self-sustaining cash flow, which
will allow us to continually invest in our dual growth engines of
R&D and business capabilities. Specifically, our R&D
efforts will be directed more comprehensively across products,
platforms, and systems, with the long-term goal of growing into a
world-class technology company. Our business capabilities include
commercial, supply, and organization capabilities. With continued
investments in R&D and business capabilities supported by our
healthy gross margin, we will continue to pursue product and
commercial success and foster a healthy long-term development
model. This flywheel has been the strategic focus since our
founding and, we believe, will remain our strategy going forward.
By understanding this business model, you will understand Li
Auto.”
Mr. Tie Li, chief financial officer of Li Auto,
added, “In the third quarter, we navigated our model succession and
launch cycle, as well as a challenging macro environment and cost
inflation. Against this backdrop, our third quarter revenues came
in at RMB9.34 billion, up 20.2% year over year. Our gross margin
was 12.7% during the quarter, affected by a provision related to Li
ONE, despite the healthy vehicle margin we achieved for Li L9 in
its first quarter of production. Looking ahead, we are optimistic
that with rapid production ramp-up, rigorous execution, and
responsible cost management, we will realize greater economies of
scale and further drive down costs, putting us back on track to hit
our profitability inflection point. As always, we believe that our
ability to deliver best-in-class products will keep Li Auto at the
forefront of the NEV transformation.”
Financial Results for the Third Quarter of
2022
Revenues
- Total revenues
were RMB9.34 billion (US$1.31 billion) in the third quarter of
2022, representing an increase of 20.2% from RMB7.78 billion in the
third quarter of 2021 and an increase of 7.0% from RMB8.73 billion
in the second quarter of 2022.
- Vehicle sales were
RMB9.05 billion (US$1.27 billion) in the third quarter of 2022,
representing an increase of 22.5% from RMB7.39 billion in the third
quarter of 2021 and an increase of 6.6% from RMB8.48 billion in the
second quarter of 2022. The increase in revenue from vehicle sales
over the third quarter of 2021 and the second quarter of 2022 was
mainly attributable to higher average selling price due to our
delivery of Li L9 starting in late August.
- Other sales and
services were RMB296.4 million (US$41.7 million) in the
third quarter of 2022, representing a decrease of 23.9% from
RMB389.4 million in the third quarter of 2021 and an increase of
19.0% from RMB249.0 million in the second quarter of 2022. The
decrease in revenue from other sales and services over the third
quarter of 2021 was attributable to the sales of automotive
regulatory credits in the third quarter of 2021, which did not
recur in the third quarter of 2022. The increase in revenue from
other sales and services over the second quarter of 2022 was mainly
attributable to increased sales of accessories and services in line
with higher accumulated vehicle sales.
Cost of Sales and Gross Margin
- Cost of sales was
RMB8.16 billion (US$1.15 billion) in the third quarter of 2022,
representing an increase of 36.8% from RMB5.96 billion in the third
quarter of 2021 and an increase of 19.1% from RMB6.85 billion in
the second quarter of 2022. The increase in cost of sales over both
the third quarter of 2021 and the second quarter of 2022 was mainly
attributable to higher average cost of sales due to our delivery of
Li L9 starting in late August, and an inventory provision and
losses on purchase commitments related to Li ONE as we lower our
order forecast for Li ONE considering the stronger-than-expected
market demands for Li L9 and our accelerated launch of Li L8. The
inventory provision and losses on purchase commitments in the
amount of RMB802.8 million (US$112.9 million) was made based on our
updated order forecast of Li ONE after the launch of Li L9 and Li
L8.
- Gross profit was
RMB1.18 billion (US$166.2 million) in the third quarter of 2022,
representing a decrease of 34.8% from RMB1.81 billion in the third
quarter of 2021 and a decrease of 37.1% from RMB1.88 billion in the
second quarter of 2022.
- Vehicle margin was
12.0% in the third quarter of 2022, compared with 21.1% in the
third quarter of 2021 and 21.2% in the second quarter of 2022. The
decrease in vehicle margin over both the third quarter of 2021 and
the second quarter of 2022 was mainly attributable to the inventory
provision and losses on purchase commitments related to Li ONE.
Excluding the aforementioned impact, the vehicle margin was 20.8%
in the third quarter of 2022.
- Gross margin was
12.7% in the third quarter of 2022, compared with 23.3% in the
third quarter of 2021 and 21.5% in the second quarter of 2022. The
decrease in gross margin over the third quarter of 2021 and the
second quarter of 2022 was mainly driven by the increase in cost of
sales.
Operating Expenses
- Operating expenses
were RMB3.31 billion (US$465.6 million) in the third quarter of
2022, representing an increase of 73.4% from RMB1.91 billion in the
third quarter of 2021 and an increase of 15.9% from RMB2.86 billion
in the second quarter of 2022.
- Research and development
expenses were RMB1.80 billion (US$253.6 million) in the
third quarter of 2022, representing an increase of 103.1% from
RMB888.5 million in the third quarter of 2021 and an increase of
17.8% from RMB1.53 billion in the second quarter of 2022. The
increase in research and development expenses over the third
quarter of 2021 was primarily driven by increased expenses
associated with new models to be introduced in the future as well
as increased employee compensation as a result of our growing
number of research and development staff. The increase in research
and development expenses over the second quarter of 2022 was
primarily driven by increased expenses associated with new models
to be introduced in the future.
- Selling, general and
administrative expenses were RMB1.51 billion (US$211.9
million) in the third quarter of 2022, representing an increase of
47.6% from RMB1.02 billion in the third quarter of 2021 and an
increase of 13.8% from RMB1.33 billion in the second quarter of
2022. The increase in selling, general and administrative expenses
over the third quarter of 2021 was primarily driven by increased
employee compensation as a result of our growing number of staff,
as well as increased rental expenses associated with the expansion
of the Company’s sales network. The increase in selling, general
and administrative expenses over the second quarter of 2022 was
primarily driven by increased marketing and promotional activities
and increased employee compensation as a result of our growing
number of staff.
Loss from Operations
- Loss from
operations was RMB2.13 billion (US$299.4 million) in the
third quarter of 2022, compared with RMB97.8 million in the third
quarter of 2021, and representing an increase of 117.6% from
RMB978.5 million in the second quarter of 2022. Non-GAAP
loss from operations was RMB1.72 billion (US$242.4
million) in the third quarter of 2022, compared with RMB259.4
million non-GAAP income from operations in the third quarter of
2021, and representing an increase of 231.1% from RMB520.8 million
non-GAAP loss from operations in the second quarter of 2022.
Net Loss and Net Loss Per Share
- Net loss was
RMB1.65 billion (US$231.3 million) in the third quarter of 2022,
compared with RMB21.5 million in the third quarter of 2021, and
representing an increase of 156.7% from RMB641.0 million in the
second quarter of 2022. Non-GAAP net loss was
RMB1.24 billion (US$174.4 million) in the third quarter of 2022,
compared with RMB335.7 million non-GAAP net income in the third
quarter of 2021 and RMB183.4 million non-GAAP net loss in the
second quarter of 2022.
- Basic and diluted net loss
per ADS6 attributable to ordinary shareholders were both
RMB1.68 (US$0.24) in the third quarter of 2022, compared with both
RMB0.02 in the third quarter of 2021, and both RMB0.64 in the
second quarter of 2022. Non-GAAP basic and diluted net loss
per ADS attributable to ordinary
shareholders3 were both RMB1.27 (US$0.18)
in the third quarter of 2022, compared with RMB0.36 and RMB0.34
non-GAAP basic and diluted net earnings per ADS attributable to
ordinary shareholders3, respectively, in the third quarter of 2021,
and RMB0.17 for both non-GAAP basic and diluted net loss per ADS
attributable to ordinary shareholders in the second quarter of
2022.
Cash Position, Operating Cash Flow and Free Cash
Flow
- Balance of cash and cash
equivalents, restricted cash, time deposits, short-term
investments, long-term time deposits and long-term
financial instruments that were included in long-term
investments was RMB55.83 billion (US$7.85 billion) as of
September 30, 2022.
- Net cash used in operating
activities was RMB508.3 million (US$71.5 million) in the
third quarter of 2022, compared with RMB2.17 billion net cash
provided by operating activities in the third quarter of 2021 and
RMB1.13 billion net cash provided by operating activities in the
second quarter of 2022. The change in net cash used in operating
activities over both the third quarter of 2021 and the second
quarter of 2022 was mainly due to the increase in payment related
to inventory purchase partially offset by the increase in cash
received from customers.
- Free cash flow was
negative RMB1.96 billion (negative US$275.3 million) in the third
quarter of 2022, compared with RMB1.16 billion free cash flow in
the third quarter of 2021 and RMB451.7 million free cash flow in
the second quarter of 2022. The change in free cash flow over both
the third quarter of 2021 and the second quarter of 2022 was
primarily due to the increase of operating cash outflow as well as
an increase in capital expenditures.
Business Outlook
For the fourth quarter of 2022, the Company expects:
- Deliveries of
vehicles to be between 45,000 and 48,000 vehicles,
representing an increase of 27.8% to 36.3% from the fourth quarter
of 2021.
- Total revenues to
be between RMB16.51 billion (US$2.32 billion) and RMB17.61 billion
(US$2.47 billion), representing an increase of 55.4% to 65.8% from
the fourth quarter of 2021.
This business outlook reflects the Company’s
current and preliminary view on the business situation and market
condition, which is subject to change.
Conference Call
Management will hold a conference call at 7:00
a.m. U.S. Eastern Time on Friday, December 9, 2022 (8:00 p.m.
Beijing Time on December 9, 2022) 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/10027197-gftd65.html
A replay of the conference call will be accessible through
December 16, 2022, 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: |
10027197 |
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/loss,
non-GAAP net income/loss attributable to ordinary shareholders,
non-GAAP basic and diluted net earnings/loss per ADS 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, 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 net loss or other consolidated statements of
comprehensive loss data 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.
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 model lineup includes Li
L9, a six-seat flagship family SUV, Li L8 and Li ONE, both of which
are six-seat premium family SUVs, and 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: http://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,” “likely to,”
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, 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 RelationsEmail: ir@lixiang.com
The Piacente Group, Inc.Yang SongTel:
+86-10-6508-0677Email: Li@tpg-ir.com
Brandi PiacenteTel: +1-212-481-2050Email: 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 |
|
|
September 30,2021 |
|
June 30,2022 |
|
September 30,2022 |
|
September 30,2022 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Revenues: |
|
|
|
|
|
|
|
|
Vehicle sales |
|
7,385,785 |
|
8,483,612 |
|
9,045,883 |
|
1,271,650 |
Other sales and services |
|
389,389 |
|
249,009 |
|
296,402 |
|
41,668 |
Total
revenues |
|
7,775,174 |
|
8,732,621 |
|
9,342,285 |
|
1,313,318 |
Cost of
sales: |
|
|
|
|
|
|
|
|
Vehicle sales |
|
(5,830,322) |
|
(6,687,273) |
|
(7,962,903) |
|
(1,119,407) |
Other sales and services |
|
(132,890) |
|
(167,048) |
|
(197,412) |
|
(27,752) |
Total cost of
sales |
|
(5,963,212) |
|
(6,854,321) |
|
(8,160,315) |
|
(1,147,159) |
Gross
profit |
|
1,811,962 |
|
1,878,300 |
|
1,181,970 |
|
166,159 |
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
(888,460) |
|
(1,531,644) |
|
(1,804,335) |
|
(253,649) |
Selling, general and administrative |
|
(1,021,299) |
|
(1,325,113) |
|
(1,507,362) |
|
(211,902) |
Total operating
expenses |
|
(1,909,759) |
|
(2,856,757) |
|
(3,311,697) |
|
(465,551) |
Loss from
operations |
|
(97,797) |
|
(978,457) |
|
(2,129,727) |
|
(299,392) |
Other
(expense)/income: |
|
|
|
|
|
|
|
|
Interest expense |
|
(19,236) |
|
(21,172) |
|
(36,637) |
|
(5,150) |
Interest income and investment income, net |
|
150,123 |
|
249,662 |
|
307,921 |
|
43,287 |
Others, net |
|
67,595 |
|
104,695 |
|
156,529 |
|
22,004 |
Income/(Loss) before
income tax expense |
|
100,685 |
|
(645,272) |
|
(1,701,914) |
|
(239,251) |
Income tax (expense)/benefit |
|
(122,195) |
|
4,226 |
|
56,176 |
|
7,897 |
Net loss |
|
(21,510) |
|
(641,046) |
|
(1,645,738) |
|
(231,354) |
Less: Net loss attributable to noncontrolling interests |
|
– |
|
(23,080) |
|
(5,417) |
|
(762) |
Net loss attributable
to ordinary shareholders of Li Auto Inc. |
|
(21,510) |
|
(617,966) |
|
(1,640,321) |
|
(230,592) |
|
|
|
|
|
|
|
|
|
Net loss |
|
(21,510) |
|
(641,046) |
|
(1,645,738) |
|
(231,354) |
Other comprehensive
income |
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of tax |
|
53,965 |
|
1,058,208 |
|
312,572 |
|
43,941 |
Total other
comprehensive income |
|
53,965 |
|
1,058,208 |
|
312,572 |
|
43,941 |
Total comprehensive
income/(loss) |
|
32,455 |
|
417,162 |
|
(1,333,166) |
|
(187,413) |
Less: Net loss attributable to noncontrolling interests |
|
– |
|
(23,080) |
|
(5,417) |
|
(762) |
Comprehensive
income/(loss) attributable to ordinary shareholders of Li Auto
Inc. |
|
32,455 |
|
440,242 |
|
(1,327,749) |
|
(186,651) |
Weighted average
number of ADSs |
|
|
|
|
|
|
|
|
Basic |
|
933,507,739 |
|
965,395,732 |
|
975,026,517 |
|
975,026,517 |
Diluted |
|
933,507,739 |
|
965,395,732 |
|
975,026,517 |
|
975,026,517 |
Net loss per ADS
attributable to ordinary shareholders |
|
|
|
|
|
|
|
|
Basic |
|
(0.02) |
|
(0.64) |
|
(1.68) |
|
(0.24) |
Diluted |
|
(0.02) |
|
(0.64) |
|
(1.68) |
|
(0.24) |
Weighted average
number of ordinary shares |
|
|
|
|
|
|
|
|
Basic |
|
1,867,015,478 |
|
1,930,791,463 |
|
1,950,053,033 |
|
1,950,053,033 |
Diluted |
|
1,867,015,478 |
|
1,930,791,463 |
|
1,950,053,033 |
|
1,950,053,033 |
Net loss per share
attributable to ordinary shareholders |
|
|
|
|
|
|
|
|
Basic |
|
(0.01) |
|
(0.32) |
|
(0.84) |
|
(0.12) |
Diluted |
|
(0.01) |
|
(0.32) |
|
(0.84) |
|
(0.12) |
Li Auto
Inc. |
Unaudited
Condensed Consolidated Balance Sheets |
(All amounts in
thousands) |
|
|
|
|
As of |
|
|
|
|
December 31,2021 |
|
September 30,2022 |
|
September 30,2022 |
|
|
RMB |
|
RMB |
|
US$ |
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
27,854,224 |
|
37,472,617 |
|
5,267,817 |
Restricted cash |
|
2,638,840 |
|
3,097,127 |
|
435,387 |
Time deposits and short-term
investments |
|
19,668,239 |
|
14,492,404 |
|
2,037,310 |
Trade receivable |
|
120,541 |
|
32,582 |
|
4,580 |
Inventories |
|
1,617,890 |
|
5,515,781 |
|
775,396 |
Prepayments and other current
assets |
|
480,680 |
|
1,459,680 |
|
205,199 |
Total current
assets |
|
52,380,414 |
|
62,070,191 |
|
8,725,689 |
Non-current assets: |
|
|
|
|
|
|
Long-term investments |
|
156,306 |
|
1,480,987 |
|
208,194 |
Property, plant and equipment,
net |
|
4,498,269 |
|
9,361,504 |
|
1,316,019 |
Operating lease right-of-use
assets, net |
|
2,061,492 |
|
3,277,542 |
|
460,750 |
Intangible assets, net |
|
751,460 |
|
832,030 |
|
116,965 |
Deferred tax assets |
|
19,896 |
|
11,493 |
|
1,616 |
Other non-current assets |
|
1,981,076 |
|
2,196,550 |
|
308,787 |
Total non-current
assets |
|
9,468,499 |
|
17,160,106 |
|
2,412,331 |
Total
assets |
|
61,848,913 |
|
79,230,297 |
|
11,138,020 |
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short‑term borrowings |
|
37,042 |
|
528,065 |
|
74,234 |
Trade and notes payable |
|
9,376,050 |
|
15,520,221 |
|
2,181,798 |
Amounts due to related
parties |
|
37,455 |
|
7,307 |
|
1,027 |
Deferred revenue, current |
|
305,092 |
|
522,613 |
|
73,468 |
Operating lease liabilities,
current |
|
473,245 |
|
707,068 |
|
99,398 |
Accruals and other current
liabilities |
|
1,879,368 |
|
4,615,396 |
|
648,823 |
Total current
liabilities |
|
12,108,252 |
|
21,900,670 |
|
3,078,748 |
Non-current liabilities: |
|
|
|
|
|
|
Long-term borrowings |
|
5,960,899 |
|
8,964,211 |
|
1,260,169 |
Deferred revenue,
non-current |
|
389,653 |
|
584,635 |
|
82,187 |
Operating lease liabilities,
non-current |
|
1,369,825 |
|
1,743,489 |
|
245,096 |
Deferred tax liabilities |
|
153,723 |
|
84,264 |
|
11,846 |
Other non-current
liabilities |
|
802,259 |
|
1,805,869 |
|
253,865 |
Total non-current
liabilities |
|
8,676,359 |
|
13,182,468 |
|
1,853,163 |
Total
liabilities |
|
20,784,611 |
|
35,083,138 |
|
4,931,911 |
Total Li Auto Inc.
shareholders’ equity |
|
41,064,302 |
|
43,856,988 |
|
6,165,317 |
Noncontrolling interests |
|
– |
|
290,171 |
|
40,792 |
Total shareholders’
equity |
|
41,064,302 |
|
44,147,159 |
|
6,206,109 |
Total liabilities and
shareholders’ equity |
|
61,848,913 |
|
79,230,297 |
|
11,138,020 |
Li Auto Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(All amounts in thousands) |
|
|
For the Three Months Ended |
|
|
September 30,2021 |
|
June 30,2022 |
|
September 30,2022 |
|
September 30,2022 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Net cash provided by/(used in) operating activities |
|
2,169,517 |
|
1,129,407 |
|
(508,260) |
|
(71,450) |
Net cash provided by/(used in) investing activities |
|
6,962,534 |
|
(740,518) |
|
119,880 |
|
16,852 |
Net cash provided by financing activities |
|
11,010,741 |
|
1,026,855 |
|
3,458,522 |
|
486,191 |
Effect of exchange rate changes |
|
(8,659) |
|
962,704 |
|
404,582 |
|
56,876 |
Net change in cash, cash equivalents and restricted
cash |
|
20,134,133 |
|
2,378,448 |
|
3,474,724 |
|
488,469 |
Cash, cash equivalents and restricted cash at beginning of
period |
|
13,827,058 |
|
34,716,572 |
|
37,095,020 |
|
5,214,735 |
Cash, cash equivalents and restricted cash at end of
period |
|
33,961,191 |
|
37,095,020 |
|
40,569,744 |
|
5,703,204 |
|
|
|
|
|
|
|
|
|
Net cash provided by/(used in) operating
activities |
|
2,169,517 |
|
1,129,407 |
|
(508,260) |
|
(71,450) |
Capital expenditures |
|
(1,004,543) |
|
(677,755) |
|
(1,450,310) |
|
(203,881) |
Free cash flow |
|
1,164,974 |
|
451,652 |
|
(1,958,570) |
|
(275,331) |
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 |
|
|
September 30,2021 |
|
June 30,2022 |
|
September 30,2022 |
|
September 30,2022 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Cost of sales |
|
(5,963,212) |
|
(6,854,321) |
|
(8,160,315) |
|
(1,147,159) |
Share-based compensation
expenses |
|
6,115 |
|
9,301 |
|
8,235 |
|
1,158 |
Non-GAAP cost of
sales |
|
(5,957,097) |
|
(6,845,020) |
|
(8,152,080) |
|
(1,146,001) |
|
|
|
|
|
|
|
|
|
Research and development
expenses |
|
(888,460) |
|
(1,531,644) |
|
(1,804,335) |
|
(253,649) |
Share-based compensation
expenses |
|
245,348 |
|
301,449 |
|
231,207 |
|
32,503 |
Non-GAAP research and
development expenses |
|
(643,112) |
|
(1,230,195) |
|
(1,573,128) |
|
(221,146) |
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
(1,021,299) |
|
(1,325,113) |
|
(1,507,362) |
|
(211,902) |
Share-based compensation
expenses |
|
105,718 |
|
146,858 |
|
165,863 |
|
23,317 |
Non-GAAP selling,
general and administrative expenses |
|
(915,581) |
|
(1,178,255) |
|
(1,341,499) |
|
(188,585) |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(97,797) |
|
(978,457) |
|
(2,129,727) |
|
(299,392) |
Share-based compensation
expenses |
|
357,181 |
|
457,608 |
|
405,305 |
|
56,978 |
Non-GAAP income/(loss)
from operations |
|
259,384 |
|
(520,849) |
|
(1,724,422) |
|
(242,414) |
|
|
|
|
|
|
|
|
|
Net loss |
|
(21,510) |
|
(641,046) |
|
(1,645,738) |
|
(231,354) |
Share-based compensation
expenses |
|
357,181 |
|
457,608 |
|
405,305 |
|
56,978 |
Non-GAAP net
income/(loss) |
|
335,671 |
|
(183,438) |
|
(1,240,433) |
|
(174,376) |
|
|
|
|
|
|
|
|
|
Net loss attributable to
ordinary shareholders of Li Auto Inc. |
|
(21,510) |
|
(617,966) |
|
(1,640,321) |
|
(230,592) |
Share-based compensation
expenses |
|
357,181 |
|
457,608 |
|
405,305 |
|
56,978 |
Non-GAAP net
income/(loss) attributable to ordinary
shareholders of Li Auto Inc. |
|
335,671 |
|
(160,358) |
|
(1,235,016) |
|
(173,614) |
|
|
|
|
|
|
|
|
|
Weighted average
number of ADSs (Non-GAAP) |
|
|
|
|
|
|
|
|
Basic |
|
933,507,739 |
|
965,395,732 |
|
975,026,517 |
|
975,026,517 |
Diluted |
|
1,000,412,702 |
|
965,395,732 |
|
975,026,517 |
|
975,026,517 |
Non-GAAP net
earnings/(loss) per ADS attributable to ordinary
shareholders |
|
|
|
|
|
|
|
|
Basic |
|
0.36 |
|
(0.17) |
|
(1.27) |
|
(0.18) |
Diluted |
|
0.34 |
|
(0.17) |
|
(1.27) |
|
(0.18) |
Weighted average
number of ordinary shares (Non-GAAP) |
|
|
|
|
|
|
|
|
Basic |
|
1,867,015,478 |
|
1,930,791,463 |
|
1,950,053,033 |
|
1,950,053,033 |
Diluted |
|
2,000,825,404 |
|
1,930,791,463 |
|
1,950,053,033 |
|
1,950,053,033 |
Non-GAAP net
earnings/(loss) per share attributable to ordinary
shareholders7 |
|
|
|
|
|
|
|
|
Basic |
|
0.18 |
|
(0.08) |
|
(0.63) |
|
(0.09) |
Diluted |
|
0.17 |
|
(0.08) |
|
(0.63) |
|
(0.09) |
__________________________
1 All translations from Renminbi (“RMB”) to
U.S. dollar (“US$”) are made at a rate of RMB7.1135 to US$1.00, the
noon buying rate in effect on September 30, 2022 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. See “Unaudited
Reconciliation of GAAP and Non-GAAP Results” set forth at the end
of this press release.
4 Free cash flow represents operating cash flow
less capital expenditures, which is considered a non-GAAP financial
measure.
5 Except for vehicle margin and gross
margin, where absolute changes instead of percentage changes are
presented.
6 Each ADS represents two Class A ordinary
shares.
7 Non-GAAP basic net earnings/loss per share
attributable to ordinary shareholders is calculated by dividing
non-GAAP net income/loss attributable to ordinary shareholders by
the weighted average number of ordinary shares outstanding during
the periods. Non-GAAP diluted net earnings/loss per share
attributable to ordinary shareholders is calculated by dividing
non-GAAP net income/loss 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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