Li Auto Inc (LI) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges
Total Revenue: RMB25.9 billion ($3.6 billion), up 1.1% year-over-year, down 41.4% quarter-over-quarter.
Vehicle Sales Revenue: RMB24.7 billion ($3.4 billion), up 1.8% year-over-year, down 22.1% quarter-over-quarter.
Gross Profit: RMB5.3 billion ($732.9 million), up 0.6% year-over-year, down 40.7% quarter-over-quarter.
Gross Margin: 20.5%, compared to 20.6% in the same period last year and 20.3% in the prior quarter.
Vehicle Margin: 90.8%, compared to 90.3% in the same period last year and 19.7% in the prior quarter.
Operating Expenses: RMB5 billion ($695.5 million), down 14% year-over-year, down 4.2% quarter-over-quarter.
R&D Expenses: RMB2.5 billion ($346.4 million), down 17.5% year-over-year, up 4.4% quarter-over-quarter.
SG&A Expenses: RMB2.5 billion ($348.8 million), down 15% year-over-year, down 17.7% quarter-over-quarter.
Income from Operations: RMB271.7 million ($37.4 million), compared to a loss of RMB584.9 million in the same period last year.
Net Income: RMB646.6 million ($89.1 million), up 9.4% year-over-year, down 81.7% quarter-over-quarter.
Diluted Net Earnings per ADS: RMB0.62 ($0.08), compared to RMB0.56 in the same period last year.
Cash Position: RMB110.7 billion ($15.3 billion) as of March 1, 2025.
Free Cash Flow: Negative RMB2.5 billion (negative $348.7 million), compared to negative RMB5.1 billion in the same period last year.
Vehicle Deliveries: Over 92,000 vehicles in Q1 2025, a 15.5% increase year-over-year.
Retail Stores: 500 stores in 151 cities as of April 30, 2025.
Supercharging Stations: 2,350 stations with over 12,800 charging stalls.
Warning! GuruFocus has detected 3 Warning Signs with BOM:514162.
Release Date: May 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Li Auto Inc (NASDAQ:LI) delivered over 92,000 vehicles in Q1 2025, marking a 15.5% year-on-year increase.
The company achieved a 14.1% market share in the RMB200,000 and above NEV market in China, reinforcing its leadership position.
Li Auto Inc (NASDAQ:LI) launched the new Li MEGA and Li L Series, featuring advanced technologies like NVIDIA's Thor-U chip and AT LiDAR sensors.
The company has built the largest urban highway supercharging network in China, with 2,350 supercharging stations and plans to expand to 4,000 by year-end.
Li Auto Inc (NASDAQ:LI) maintains a strong cash position with RMB110.7 billion ($15.3 billion) as of March 2025.
Total revenues in Q1 2025 were down 41.4% quarter-over-quarter, primarily due to seasonal factors like the Chinese New Year holiday.
The company's net income decreased by 81.7% quarter-over-quarter, despite a year-over-year increase.
Free cash flow was negative RMB2.5 billion in Q1 2025, compared to positive RMB6.1 billion in the prior quarter.
Li Auto Inc (NASDAQ:LI) faces competitive pressure as competitors aggressively benchmark the L Series with competitive pricing and specifications.
The company anticipates challenges in maintaining vehicle margins around 19% due to the transition to new models and production adjustments.
Q: How does Li Auto plan to maintain its growth in vehicle sales despite aggressive competition in the market? A: Xiang Li, Chairman and CEO, stated that the new L Series has met sales expectations with healthy growth, achieving over 10,000 units in weekly sales. The company is confident that monthly deliveries will soon return to the 50,000 per month level, maintaining a strong market share in the RMB200,000 and above NEV market.
Q: Will Li Auto consider expanding its product line to include sedans, and will it adopt dual powertrain strategies? A: Xiang Li explained that after achieving a revenue scale of RMB300 billion with the current SUV lineup, Li Auto will consider launching sedan and MPV models. These models will cater to a broader consumer base and will be offered in China, other Asian markets, and Europe.
Q: Can you provide more details about the Halo OS and its advantages over traditional automotive operating systems? A: Yan Xie, CTO, highlighted that Halo OS offers significant advantages in resource usage and system architecture, enabling faster innovation. It allows for vertical integration of hardware, software, and algorithms, enhancing the AI user experience. The open-source nature of Halo OS also fosters industry collaboration and cost efficiency.
Q: What are the key selling points of the upcoming Li i8 model? A: Xiang Li mentioned that the Li i8 will feature innovative styling, excellent handling, and ride comfort. It supports high-voltage charging technology, allowing for 500 kilometers of range in 10 minutes. The company is also expanding its supercharging network to support the launch.
Q: What are Li Auto's plans for international expansion, and when can we expect significant export volumes? A: Xiang Li stated that Li Auto plans to focus on Asian and European markets, ensuring good hardware, after-sales support, and smart software services. The goal is to achieve 30% of overall sales from overseas markets in the long term, with a focus on recruiting top talent and establishing strong distributor networks.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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