Loading...
01/11 03:34
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Despite a slight decrease in gross margin, Li Auto's earnings call highlights strong financial performance with increased vehicle margin and net income. The Q&A reveals confidence in sales growth and strategic expansion plans. While revenue guidance shows a potential decline, overall positive sentiment is supported by improved operational efficiency, a strong cash position, and promising product developments like the i8 BEV model. The positive reaction is tempered by management's vague responses on certain financial specifics, but the overall outlook remains favorable, predicting a positive stock movement in the near term.
Total Revenues RMB25.9 billion ($3.6 billion), up 1.1% year-over-year; increase due to higher vehicle deliveries, partially offset by lower average selling price due to different product mix.
Vehicle Sales Revenue RMB24.7 billion ($3.4 billion), up 1.8% year-over-year; increase attributed to higher vehicle deliveries, partially offset by lower average selling price.
Cost of Sales RMB20.6 billion ($2.8 billion), up 1.3% year-over-year; increase attributed to higher sales volume.
Gross Profit RMB5.3 billion ($732.9 million), up 0.6% year-over-year; increase due to higher revenues.
Vehicle Margin 19.8%, up from 19.3% year-over-year; increase due to cost reductions and pricing strategy changes.
Gross Margin 20.5%, down from 20.6% year-over-year; slight decrease attributed to product mix.
Operating Expenses RMB5 billion ($695.5 million), down 14% year-over-year; decrease due to reduced employee compensation and improved operational efficiency.
R&D Expenses RMB2.5 billion ($346.4 million), down 17.5% year-over-year; decrease due to reduced employee compensation and impact of new vehicle programs.
SG&A Expenses RMB2.5 billion ($348.8 million), down 15% year-over-year; decrease due to reduced employee compensation and decreased marketing activity.
Income from Operations RMB271.7 million ($37.4 million), compared to a loss of RMB584.9 million in the same period last year; improvement due to higher revenues and reduced expenses.
Operating Margin 1.0%, improved from negative 2.3% year-over-year; improvement due to higher revenues and reduced operating expenses.
Net Income RMB646.6 million ($89.1 million), up 9.4% year-over-year; increase attributed to improved operational performance.
Diluted Net Earnings per ADS RMB0.62 ($0.08), up from RMB0.56 year-over-year; increase due to higher net income.
Cash Position RMB110.7 billion ($15.3 billion) as of March 1, 2025; strong cash position maintained.
Net Cash Used in Operating Activities RMB1.7 billion ($234.4 million), improved from RMB3.3 billion in the same period last year; improvement due to better operational cash flow.
Free Cash Flow Negative RMB2.5 billion (negative $348.7 million), improved from negative RMB5.1 billion in the same period last year; improvement due to reduced cash used in operations.
New Product Launches: Recently, we launched the new Li MEGA and new Li L Series. The refreshed Li AD Max models received NVIDIA’s latest Thor-U chip, while Li AD Pro models upgraded from Horizon Robotics Journey 5 to Journey 6M chips and include ATL LiDAR sensors co-developed with .
Product Iteration: In addition to these upgrades for assisted driving, we have enhanced chassis control, exterior and interior design and smart cockpit across the new Li L Series.
Li MEGA Home Launch: On April 23, we launched Li MEGA Home at Shanghai Auto Show 2025, reflecting our latest understanding of multigenerational families and their mobility needs.
Order Backlog: Since this launch, Li MEGA Home has accounted for over 90% of Li MEGA orders, demonstrating its strong value proposition and user recognition.
Upcoming Product Launches: Preparations for our upcoming launch are progressing smoothly with Li i8 and Li i6 scheduled for launch in July and September, respectively.
Market Positioning: We performed strongly in RMB200,000 above NEV market in China, growing at twice the market rate according to the insurance registration data from the China Automotive Technology and Research Center.
Market Share: In particular, we topped the market with a 14.1% market share in April, further reinforcing our leadership.
Production Capacity Increase: To meet growing demand, we’re increasing our production capacity to achieve 2,500 to 3,000 monthly deliveries by July.
Supercharging Network Expansion: We have built the largest urban highway supercharging network among all automakers in China, covering over 50,000 kilometers of highways as of the end of first quarter.
Operational Efficiency: Operating expenses in the first quarter were RMB5 billion or $695.5 million, down 14% year-over-year and 4.2% quarter-over-quarter.
Strategic Shift in R&D: We continue to rapidly develop our ADAS technology, our in-house developed VLA Driver model as our next-generation ADAS architecture.
Open Source Initiative: In April, we published the Li Halo OS technical architecture and white paper and released initial code to the open source community.
Earnings Expectations: Li Auto Inc. missed earnings expectations with a reported EPS of $0.08, compared to expectations of $0.2377.
Competitive Pressures: Despite being a leader in the EREV segment, Li Auto faces challenges from newcomers in the market, which may impact its competitive edge.
Regulatory Issues: The company acknowledges inherent risks and uncertainties in forward-looking statements, which may include regulatory challenges.
Supply Chain Challenges: The company has experienced a decrease in vehicle deliveries due to seasonal factors related to the Chinese New Year holiday, indicating potential supply chain vulnerabilities.
Economic Factors: The decrease in average selling price due to product mix changes and the overall economic environment may affect revenue and profitability.
Cash Flow: Negative free cash flow of $348.7 million in Q1 2025 raises concerns about liquidity and operational efficiency.
Market Conditions: The business outlook is subject to change based on current market conditions, indicating potential volatility in future performance.
Vehicle Deliveries: In Q1 2025, Li Auto delivered over 92,000 vehicles, a 15.5% year-over-year increase.
New Product Launches: Launched new Li MEGA and new Li L Series, enhancing user value through innovation.
Production Capacity: Increasing production capacity to achieve 2,500 to 3,000 monthly deliveries by July.
Supercharging Network Expansion: Plans to deploy over 2,500 supercharging stations in June and aim for 4,000 stations by year-end.
ADAS Technology Development: Rapid development of ADAS technology with the introduction of VLA Driver.
Sales and Service Network Expansion: Expanding network in major auto parts and shopping malls, penetrating lower-tier cities.
Q2 2025 Deliveries: Expecting deliveries between 121,000 and 128,000 vehicles, a year-over-year increase of 13.3% to 17.9%.
Q2 2025 Revenue Outlook: Total revenue expected to be between RMB32.5 billion and RMB33.8 billion ($4.5 billion to $4.7 billion), a year-over-year increase of 2.5% to 6.7%.
Vehicle Margin: Vehicle margin in Q1 was 19.8%, stable compared to previous quarters.
Cash Position: Strong cash position at RMB110.7 billion ($15.3 billion) as of March 1, 2025.
Share Buyback Program: None
The earnings call revealed weak financial performance, with significant losses and cash flow issues. Despite positive product developments and strategic plans, the negative financial metrics and lack of clear guidance on future profitability overshadowed these aspects. The Q&A section highlighted management's avoidance of key details, adding to uncertainties. Given these factors, a negative stock price reaction is expected.
The earnings call summary indicates strong vehicle delivery growth, market share leadership, and strategic product launches. The Q&A session reveals positive developments in chip technology, sales system reorganization, and overseas strategy. Despite some concerns about cash flow and management's unclear responses on certain issues, the strong cash position, consistent gross margin outlook, and aggressive expansion plans support a positive sentiment. The expected delivery and revenue growth, coupled with strategic initiatives, suggest a likely stock price increase in the near term.
Despite a slight decrease in gross margin, Li Auto's earnings call highlights strong financial performance with increased vehicle margin and net income. The Q&A reveals confidence in sales growth and strategic expansion plans. While revenue guidance shows a potential decline, overall positive sentiment is supported by improved operational efficiency, a strong cash position, and promising product developments like the i8 BEV model. The positive reaction is tempered by management's vague responses on certain financial specifics, but the overall outlook remains favorable, predicting a positive stock movement in the near term.
The earnings call reveals strong financial performance, with improvements in income from operations, operating margin, and net income. Despite a decrease in revenue guidance, the company shows confidence in its growth strategy, particularly in vehicle sales and market share. The Q&A highlights positive sentiment towards product development and market strategy. The strong cash position and improved cash flow further support a positive outlook. Although some management responses were unclear, the overall sentiment is positive, especially with the anticipation of new product launches and continued growth in the high-end NEV market.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
