Core Viewpoint - Li Auto's stock dropped over 4% following the announcement of weak third-quarter delivery and revenue guidance, indicating significant growth pressure ahead [1][6]. Financial Performance - In Q2 2025, Li Auto reported total revenue of 302 billion RMB, a year-on-year decline of 4.5%, but a quarter-on-quarter increase of 16.7% [4]. - The net profit for Q2 was 11 billion RMB, remaining stable year-on-year and increasing by 69.6% quarter-on-quarter [4][8]. - Vehicle delivery for Q2 was 111,074 units, showing a slight year-on-year increase of 2.3% [4]. Q3 Guidance - For Q3 2025, Li Auto expects vehicle deliveries to be between 90,000 and 95,000 units, representing a year-on-year decline of 37.8% to 41.1% [1][6]. - The projected revenue for Q3 is expected to drop significantly, estimated between 248 billion and 262 billion RMB, a year-on-year decrease of 38.8% to 42.1% [1][6]. Cash Flow and Financial Health - Despite achieving quarterly profitability, Li Auto's cash flow is concerning, with a net cash used in operating activities of 30 billion RMB in Q2, compared to 4.3 billion RMB in the same period last year [7]. - The free cash flow was negative 38 billion RMB, more than doubling the loss from the previous year [7]. - As of June 30, 2025, the company had cash and cash equivalents totaling 106.9 billion RMB (approximately 14.9 billion USD), providing a buffer against short-term pressures [7]. Profitability and Cost Control - Li Auto maintained a gross margin of 20.1% in Q2, up from 19.5% year-on-year, and vehicle gross margin increased to 19.4% [8]. - Operating profit for the quarter was 8.27 billion RMB, a significant year-on-year increase of 76.7% and a quarter-on-quarter surge of 204.4% [8]. Product Development and Brand Strategy - To address challenges, Li Auto is accelerating the launch of new products and brand upgrades, including the release of the new family SUV, Li Auto i8, priced at 339,800 RMB [9]. - The CEO emphasized the brand upgrade aims to cater to a broader consumer base, with expectations for the upcoming Li Auto i6 to enhance the company's position in the high-end electric vehicle market [9].

Group 1 - Haier Group's subsidiary, Katai Chi Holdings, has completed a strategic acquisition of a 43.0% stake in Autohome from Ping An's Yunchen Capital for approximately $1.8 billion, making it the controlling shareholder of Autohome [1][3] - Following the acquisition, Autohome's board of directors was restructured, with Liu Zhi from Haier Group appointed as the new chairman and CEO, while Yang Song transitioned to a senior vice president role [3] - Autohome, founded by Li Xiang in 2005, is one of China's three major automotive vertical portals, and was previously acquired by Ping An in 2016 for $1.6 billion [3] Group 2 - Autohome's latest financial report indicates a total net revenue of RMB 1.758 billion for Q2 2025, a decrease from RMB 1.873 billion in the same period of 2024, with net profit dropping to RMB 415.7 million from RMB 524.8 million year-on-year [3] - As of August 28, Autohome's stock price fell by 1.67%, with a market capitalization of HKD 28.526 billion (approximately RMB 26.1 billion) [4]

理想汽車董事會轄下經修訂及重列提名及公司治理委員會章程 （理想汽車（「本公司」）董事會於2021年7月27日採納， 於本公司於香港聯合交易所有限公司（「香港聯交所」）上市後生效， 並根據董事會於2025年8月28日通過的決議修訂） I. 委員會成立目的 董事會（「董事會」）轄下提名及公司治理委員會（「委員會」）的成立旨在物色其 認為具備良好資質、願意並可以擔任本公司董事及董事委員會成員的人士及 就此向董事會提供意見；就董事會成員組合、程序及委員會提供建議；定期 審查董事會規模並向董事會建議任何適當變動；及制定及向董事會建議適用 於本公司的企業管治原則。 II. 委員會組成 委員會須由董事會不時確定的兩名或以上獨立非執行董事組成。委員會各成 員須符合納斯達克股票市場及香港聯交所的委員會任職規定，及董事會認為 合適的其他相關要求。至少一名委員會成員須為不同性別。 IV. 委員會的職責及責任 除下文所載的權限及職責外，委員會的權限及職責包括(i)《香港聯合交易所有 限公司證券上市規則》（「香港《上市規則》」）（經不時修訂）附錄C1《企業管治 守則》（「《企業管治守則》」）相關守則條文及(ii)香港《上市規則》（經不 ...

董事會（「董事會」）轄下提名及公司治理委員會（「委員會」）的成立旨在物色其 認為具備良好資質、願意並可以擔任本公司董事及董事委員會成員的人士及 就此向董事會提供意見；就董事會成員組合、程序及委員會提供建議；定期 審查董事會規模並向董事會建議任何適當變動；及制定及向董事會建議適用 於本公司的企業管治原則。 II. 委員會組成 理想汽車董事會轄下經修訂及重列提名及公司治理委員會章程 （理想汽車（「本公司」）董事會於2021年7月27日採納， 於本公司於香港聯合交易所有限公司（「香港聯交所」）上市後生效， 並根據董事會於2025年8月28日通過的決議修訂） I. 委員會成立目的 委員會須由董事會不時確定的兩名或以上獨立非執行董事組成。委員會各成 員須符合納斯達克股票市場及香港聯交所的委員會任職規定，及董事會認為 合適的其他相關要求。至少一名委員會成員須為不同性別。 委員會主席必須為獨立非執行董事，應由董事會指定，惟倘董事會未作出指 定，則委員會成員可通過多數票指定一名主席。委員會任何職位空缺應由董 事會填補。委員會成員僅可由董事會免職。 III. 委員會會議及程序 委員會應在其認為就履行其職責及責任而言屬必要時舉行 ...

Financial Performance - For the six months ended June 30, 2025, the total revenue was RMB 56,172,427 thousand, a decrease of 2.0% compared to RMB 57,312,056 thousand in the same period of 2024[3] - The net profit for the six months ended June 30, 2025, was RMB 1,743,581 thousand, reflecting a 3.0% increase from RMB 1,692,066 thousand in the same period of 2024[3] - Total revenue decreased by 2.0% from RMB 57.31 billion for the six months ended June 30, 2024, to RMB 56.17 billion for the six months ended June 30, 2025[20] - Vehicle sales revenue decreased by 1.8% from RMB 54.66 billion to RMB 53.56 billion, primarily due to changes in product mix and increased sales incentives[21] - Other sales and service revenue decreased by 4.8% from RMB 2.74 billion to RMB 2.61 billion, remaining relatively stable[22] - Gross profit decreased by 0.7% from RMB 11.46 billion to RMB 11.39 billion, while gross margin increased from 20.0% to 20.3%[24] - Operating profit for the six months ended June 30, 2025, was RMB 1.1 billion, compared to an operating loss of RMB 1.169 billion for the six months ended June 30, 2024[28] - The company's net profit for the six months ended June 30, 2025, was RMB 1.7 billion, remaining relatively stable compared to the previous period[31] - Basic earnings per share for the six months ended June 30, 2025, was RMB 0.87, up from RMB 0.85 for the same period in 2024[56] - Net interest income and investment income decreased by 29.6% from RMB 1.4 billion for the six months ended June 30, 2024, to RMB 1.0 billion for the six months ended June 30, 2025, mainly due to changes in the fair value of equity investments[29] Vehicle Sales and Market Position - The cumulative delivery volume reached 203,938 vehicles in the first half of 2025, representing a year-on-year growth of 7.9%[6] - The market share in the RMB 200,000 and above new energy vehicle segment was 13.6% in the first half of 2025, maintaining the leading position among Chinese automotive brands[6] - The Li MEGA Home special edition was priced at RMB 559,800 and became the best-selling MPV in the RMB 500,000 and above segment since May 2025[8] - The company launched the Li Auto i8, a six-seat pure electric SUV, priced at RMB 339,800, featuring a range of 720 km and a fast-charging capability[18] - The company plans to launch the Li Auto i6, a five-seat pure electric SUV, in September 2025, and aims to expand its charging network to 4,000 stations by the end of the year[19] Research and Development - The company established its first overseas R&D center in Munich, Germany, focusing on next-generation technology research in four key areas[11] - The new generation of driver assistance technology, VLA driver model, integrates spatial, language, and behavioral intelligence, significantly enhancing user experience[10] - The company has initiated an open-source strategy for its self-developed smart car operating system, aiming to foster ecosystem innovation through global collaboration[10] - R&D expenses decreased by 12.4% from RMB 6.1 billion for the six months ended June 30, 2024, to RMB 5.3 billion for the six months ended June 30, 2025, mainly due to reduced employee compensation[26] Cost and Expenses - Total sales cost decreased by 2.3% from RMB 45.85 billion to RMB 44.79 billion, attributed to cost reductions and changes in product mix[23] - Vehicle gross margin increased from 19.0% for the six months ended June 30, 2024, to 19.6% for the six months ended June 30, 2025, primarily due to a reduction in average sales costs[25] - Selling, general and administrative expenses decreased by 9.4% from RMB 5.8 billion for the six months ended June 30, 2024, to RMB 5.2 billion for the six months ended June 30, 2025, primarily due to reduced employee compensation and improved operational efficiency[27] Cash Flow and Financial Position - As of June 30, 2025, the company's cash position was RMB 106.9 billion, down from RMB 112.8 billion as of December 31, 2024[32] - The net cash used in operating activities for the six months ended June 30, 2025, was RMB (4,737,187), compared to RMB (3,771,783) for the same period in 2024, indicating a worsening cash flow situation[59] - The total current liabilities increased from RMB 69,215,896 as of December 31, 2024, to RMB 71,212,256 as of June 30, 2025, representing an increase of approximately 2.9%[58] - The total equity increased from RMB 71,320,382 as of December 31, 2024, to RMB 73,628,493 as of June 30, 2025, reflecting a growth of approximately 3.2%[58] - Cash and cash equivalents decreased from RMB 65,901,123 as of December 31, 2024, to RMB 49,790,369 as of June 30, 2025, reflecting a decline of approximately 24.5%[57] Debt and Liabilities - The company's debt-to-asset ratio as of June 30, 2025, was 54.3%, compared to 56.1% as of December 31, 2024[37] - Long-term borrowings significantly decreased from RMB 8,151,598 as of December 31, 2024, to RMB 1,834,260 as of June 30, 2025, indicating a reduction of approximately 77.5%[58] - Short-term borrowings increased significantly from RMB 281,102 thousand on December 31, 2024, to RMB 6,391,223 thousand by June 30, 2025[70] - The total borrowings of the company were RMB 8,432,700 thousand as of December 31, 2024, and RMB 8,225,483 thousand as of June 30, 2025[70] Taxation and Compliance - Income tax expense increased by 97.9% from RMB 1.616 billion for the six months ended June 30, 2024, to RMB 3.198 billion for the six months ended June 30, 2025, due to a higher effective tax rate and increased pre-tax profit[30] - The company is entitled to a VAT refund for amounts exceeding a 3% tax burden on sales of self-developed software products since April 2021[79] - The company plans to reinvest all undistributed profits from its subsidiaries in China indefinitely, with no plans to distribute dividends outside of China, thus expecting no withholding tax in the foreseeable future[87] - The corporate income tax rate in Hong Kong for the company's subsidiaries is 16.5%, with no withholding tax on dividends paid to the parent company[88] - The corporate income tax rate in Singapore is 17%, with no withholding tax on dividends paid to the parent company[89] Corporate Governance and Other Information - The company did not declare an interim dividend for the six months ended June 30, 2025[54] - There were no significant legal proceedings that could adversely affect the company's financial condition as of June 30, 2025[50] - The company has not engaged in any buybacks or sales of its listed securities during the reporting period[49] - The mid-term performance announcement will be published on the Hong Kong Stock Exchange and the company's website[95]

[Second Quarter 2025 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Overview) Li Auto Inc. reported its operational and financial performance for the second quarter of 2025, highlighting vehicle deliveries and key financial metrics [Operating Highlights](index=1&type=section&id=Operating%20Highlights%20for%20the%20Second%20Quarter%20of%202025) Li Auto Inc. reported 111,074 vehicle deliveries in Q2 2025, a 2.3% year-over-year increase, and continued to expand its retail and servicing infrastructure across China - Total deliveries for the second quarter of 2025 were **111,074 vehicles**, representing a **2.3% year-over-year increase**[2](index=2&type=chunk) - As of June 30, 2025, the Company had **530 retail stores** in 151 cities, **511 servicing centers** and Li Auto-authorized body and paint shops operating in 222 cities, and **2,851 super charging stations** in operation equipped with **15,655 charging stalls**[3](index=3&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights%20for%20the%20Second%20Quarter%20of%202025) The company achieved RMB30.2 billion in total revenues with a gross margin of 20.1% in Q2 2025, while operating income significantly increased by 76.7% YoY and 204.4% QoQ, reaching RMB827.0 million Q2 2025 Key Financial Highlights (RMB millions) | Metric | 2025 Q2 (RMB) | YoY Change | QoQ Change | | :---------------------- | :------------ | :--------- | :--------- | | Vehicle Sales | 28,900 | -4.7% | 17.0% | | Vehicle Margin | 19.4% | +0.7pts | -0.4pts | | Total Revenues | 30,200 | -4.5% | 16.7% | | Gross Profit | 6,100 | -1.8% | 14.1% | | Gross Margin | 20.1% | +0.6pts | -0.4pts | | Operating Expenses | (5,200) | -8.2% | 3.8% | | Income from Operations | 827.0 | 76.7% | 204.4% | | Operating Margin | 2.7% | +1.2pts | +1.7pts | | Net Income | 1,100 | -0.4% | 69.6% | | Non-GAAP Net Income | 1,500 | -2.3% | 44.7% | | Diluted EPS per ADS | 1.03 | -1.9% | 66.1% | | Non-GAAP Diluted EPS per ADS | 1.37 | -3.5% | 42.7% | | Net Cash Used in Operating Activities | (3,000) | 607.1% | 78.5% | | Free Cash Flow (Non-GAAP) | (3,800) | 107.4% | 51.8% | [Key Financial Results Table](index=3&type=section&id=Key%20Financial%20Results) This section presents a comprehensive table of key financial results for the periods ended June 30, 2024, March 31, 2025, and June 30, 2025 Key Financial Results (RMB millions, except percentages and per ADS data) | Metric | June 30, 2024 (RMB) | March 31, 2025 (RMB) | June 30, 2025 (RMB) | YoY Change | QoQ Change | | :---------------------------------------------- | :------------------ | :------------------- | :------------------ | :--------- | :--------- | | Vehicle sales | 30,319.7 | 24,678.6 | 28,885.1 | (4.7)% | 17.0% | | Vehicle margin | 18.7% | 19.8% | 19.4% | 0.7pts | (0.4)pts | | Total revenues | 31,678.4 | 25,926.8 | 30,245.6 | (4.5)% | 16.7% | | Gross profit | 6,176.9 | 5,318.5 | 6,067.0 | (1.8)% | 14.1% | | Gross margin | 19.5% | 20.5% | 20.1% | 0.6pts | (0.4)pts | | Operating expenses | (5,708.9) | (5,046.8) | (5,240.0) | (8.2)% | 3.8% | | Income from operations | 468.0 | 271.7 | 827.0 | 76.7% | 204.4% | | Operating margin | 1.5% | 1.0% | 2.7% | 1.2pts | 1.7pts | | Net income | 1,100.9 | 646.6 | 1,096.9 | (0.4)% | 69.6% | | Non-GAAP net income | 1,503.1 | 1,014.3 | 1,468.2 | (2.3)% | 44.7% | | Diluted net earnings per ADS attributable to ordinary shareholders | 1.05 | 0.62 | 1.03 | (1.9)% | 66.1% | | Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders | 1.42 | 0.96 | 1.37 | (3.5)% | 42.7% | | Net cash used in operating activities | (429.4) | (1,701.0) | (3,036.2) | 607.1% | 78.5% | | Free cash flow (non-GAAP) | (1,852.7) | (2,530.6) | (3,841.8) | 107.4% | 51.8% | [Recent Developments](index=4&type=section&id=Recent%20Developments) This section outlines recent business developments, including vehicle deliveries, ESG performance, and new product launches [Delivery Update (July 2025)](index=4&type=section&id=Delivery%20Update) Li Auto delivered 30,731 vehicles in July 2025 and continued to expand its retail and charging infrastructure, reaching over 3,000 super charging stations - In July 2025, the Company delivered **30,731 vehicles**[10](index=10&type=chunk) - As of July 31, 2025, the Company had **535 retail stores** in 153 cities, **527 servicing centers** in 222 cities, and **3,028 super charging stations** in operation equipped with **16,671 charging stalls**[10](index=10&type=chunk) [ESG Performance](index=4&type=section&id=Environmental%2C%20Social%2C%20and%20Governance%20(ESG)%20Performance) Li Auto maintained its top-tier ESG rating from MSCI for the third consecutive year, reflecting strong management of ESG factors - In July 2025, the Company received the highest MSCI ESG rating of '**AAA**' for the third consecutive year[11](index=11&type=chunk) [New Product Launch: Li i8](index=4&type=section&id=Li%20i8) Li Auto launched the Li i8, a new six-seat battery electric family SUV, featuring advanced BEV platform technology, a 720 km CLTC range, and proprietary intelligent driving systems, with deliveries commencing in August 2025 - In July 2025, the Company launched **Li i8**, a six-seat battery electric family SUV[12](index=12&type=chunk) - Li i8 is built on a new high-voltage BEV platform, comes standard with a dual-motor all-wheel drive system, a **97.8 kWh ternary lithium 5C super charging battery pack**, and delivers a **720 km CLTC range**[12](index=12&type=chunk) - It supports a **500 km driving range** with only ten minutes of charging and features LiDAR, Li AD Max advanced assisted driving system (powered by VLA Driver large model), and Li Xiang Tong Xue Agent (supported by MindGPT), priced at **RMB339,800**, with deliveries starting on August 20, 2025[12](index=12&type=chunk) [Management Commentary](index=4&type=section&id=CEO%20and%20CFO%20Comments) This section provides strategic insights from the CEO and a financial review from the CFO regarding the company's performance and future direction [CEO's Strategic Review](index=4&type=section&id=Mr.%20Xiang%20Li%2C%20chairman%20and%20chief%20executive%20officer%20of%20Li%20Auto) CEO Xiang Li highlighted Li Auto's market leadership in China's RMB200,000+ NEV segment, the success of Li MEGA, and significant advancements in BEV and intelligence with the launch of Li i8 and proprietary AI models - Solidified position as China's best-selling domestic automotive brand in the **RMB200,000 and above NEV market**[13](index=13&type=chunk) - Li MEGA quickly became the **top-seller among MPVs priced above RMB500,000** since May[13](index=13&type=chunk) - Launched **Li i8**, a six-seat battery electric family SUV, alongside in-house developed VLA Driver large model and Li Xiang Tong Xue Agent, transforming R&D breakthroughs into enhanced product experiences, with plans to launch **Li i6** in September to expand model lineup[13](index=13&type=chunk) [CFO's Financial Review](index=4&type=section&id=Mr.%20Tie%20Li%2C%20chief%20financial%20officer%20of%20Li%20Auto) CFO Tie Li emphasized the company's focus on cost optimization and operational efficiency, leading to solid profitability in Q2 2025, with total revenues of RMB30.2 billion, a healthy gross margin of 20.1%, and a 69.6% QoQ increase in net income - Remained focused on cost optimization and operational efficiency enhancement, achieving **solid profitability**[13](index=13&type=chunk) - Quarterly total revenues reached **RMB30.2 billion**, with gross margin remaining healthy at **20.1%**, and net income increased to **RMB1.1 billion**, up **69.6% quarter-over-quarter**[13](index=13&type=chunk) [Detailed Financial Results for Q2 2025](index=5&type=section&id=Financial%20Results%20for%20the%20Second%20Quarter%20of%202025) This section provides an in-depth analysis of Li Auto Inc.'s financial performance for the second quarter of 2025, covering revenues, costs, expenses, and cash flows [Revenues Analysis](index=5&type=section&id=Revenues) Total revenues decreased 4.5% YoY to RMB30.2 billion but increased 16.7% QoQ, with vehicle sales seeing a 4.7% YoY decrease due to lower average selling price from product mix and incentives, offset by increased deliveries Q2 2025 Revenue Breakdown (RMB billions) | Revenue Type | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :-------------------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Total Revenues | 30.2 | 31.7 | 25.9 | -4.5% | 16.7% | | Vehicle Sales | 28.9 | 30.3 | 24.7 | -4.7% | 17.0% | | Other Sales & Services | 1.4 | 1.4 | 1.2 | 0.1% | 9.0% | - The decrease in revenue from vehicle sales over Q2 2024 was primarily attributable to lower average selling price due to different product mix, interest subsidies, and increased sales incentives, partially offset by an increase in vehicle deliveries, while the increase QoQ was primarily attributable to the increase in vehicle deliveries[17](index=17&type=chunk) - Revenue from other sales and services remained relatively stable YoY and increased QoQ mainly due to increased provision of services and sales of accessories, in line with higher accumulated vehicle sales[17](index=17&type=chunk) [Cost of Sales and Gross Margin Analysis](index=5&type=section&id=Cost%20of%20Sales%20and%20Gross%20Margin) Cost of sales decreased 5.2% YoY but increased 17.3% QoQ, while gross profit decreased 1.8% YoY but increased 14.1% QoQ, with vehicle margin improving to 19.4% (up 0.7pts YoY) mainly due to cost reduction Q2 2025 Cost of Sales and Gross Margin (RMB billions) | Metric | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :-------------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Cost of Sales | 24.2 | 25.5 | 20.6 | -5.2% | 17.3% | | Gross Profit | 6.1 | 6.2 | 5.3 | -1.8% | 14.1% | | Vehicle Margin | 19.4% | 18.7% | 19.8% | +0.7pts | -0.4pts | | Gross Margin | 20.1% | 19.5% | 20.5% | +0.6pts | -0.4pts | - The decrease in cost of sales over Q2 2024 was primarily attributable to lower average cost of sales due to cost reduction and different product mix, partially offset by the increase in vehicle deliveries, while the increase QoQ was primarily attributable to the increase in vehicle deliveries[17](index=17&type=chunk) - The increase in vehicle margin over Q2 2024 was mainly attributable to lower average cost of sales due to cost reduction, partially offset by lower average selling price, with gross margin increasing YoY mainly due to the improvement in vehicle margin[17](index=17&type=chunk) [Operating Expenses Analysis](index=5&type=section&id=Operating%20Expenses) Total operating expenses decreased 8.2% YoY to RMB5.2 billion but increased 3.8% QoQ, with R&D expenses decreasing 7.2% YoY due to lower employee compensation but increasing 11.8% QoQ due to new vehicle programs Q2 2025 Operating Expenses (RMB billions) | Expense Type | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :----------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Total Operating Expenses | 5.2 | 5.7 | 5.0 | -8.2% | 3.8% | | R&D Expenses | 2.8 | 3.0 | 2.5 | -7.2% | 11.8% | | SG&A Expenses | 2.7 | 2.8 | 2.5 | -3.5% | 7.4% | - The decrease in research and development expenses over Q2 2024 was mainly attributable to decreased employee compensation, while the increase QoQ was mainly attributable to the impact of the pace of new vehicle programs and increased expenses to support expanding product portfolios and technologies[17](index=17&type=chunk) - The decrease in selling, general and administrative expenses over Q2 2024 was primarily due to decreased employee compensation, partially offset by increased marketing and promotional activities, with the increase QoQ primarily due to increased marketing and promotional activities[17](index=17&type=chunk) [Income from Operations Analysis](index=6&type=section&id=Income%20from%20Operations) Income from operations surged 76.7% YoY and 204.4% QoQ to RMB827.0 million, resulting in an operating margin of 2.7% (up 1.2pts YoY and 1.7pts QoQ), with non-GAAP income from operations also seeing substantial increases Q2 2025 Income from Operations (RMB millions) | Metric | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :---------------------- | :------------ | :------------ | :--------- | :--------- | :--------- | | Income from Operations | 827.0 | 468.0 | 271.7 | 76.7% | 204.4% | | Operating Margin | 2.7% | 1.5% | 1.0% | +1.2pts | +1.7pts | | Non-GAAP Income from Operations | 1,200 | 870.1 | 639.3 | 37.7% | 87.4% | [Net Income and EPS Analysis](index=6&type=section&id=Net%20Income%20and%20Net%20Earnings%20Per%20Share) Net income was RMB1.1 billion, a slight decrease of 0.4% YoY but a significant increase of 69.6% QoQ, while diluted net earnings per ADS were RMB1.03, decreasing 1.9% YoY but increasing 66.1% QoQ Q2 2025 Net Income and EPS (RMB millions, per ADS) | Metric | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :---------------------------------------------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Net Income | 1,096.9 | 1,100.9 | 646.6 | -0.4% | 69.6% | | Non-GAAP Net Income | 1,468.2 | 1,503.1 | 1,014.3 | -2.3% | 44.7% | | Diluted Net Earnings per ADS | 1.03 | 1.05 | 0.62 | -1.9% | 66.1% | | Non-GAAP Diluted Net Earnings per ADS | 1.37 | 1.42 | 0.96 | -3.5% | 42.7% | [Cash Flow and Position Analysis](index=6&type=section&id=Cash%20Position%2C%20Operating%20Cash%20Flow%20and%20Free%20Cash%20Flow) As of June 30, 2025, Li Auto's cash position was RMB106.9 billion, with net cash used in operating activities increasing significantly to RMB3.0 billion, and free cash flow being negative RMB3.8 billion, primarily due to increased inventory purchases - Cash position was **RMB106.9 billion (US$14.9 billion)** as of June 30, 2025[22](index=22&type=chunk) Q2 2025 Cash Flow (RMB millions) | Metric | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :-------------------------------------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Net Cash Used in Operating Activities | (3,036.2) | (429.4) | (1,701.0) | 607.1% | 78.5% | | Free Cash Flow (Non-GAAP) | (3,841.8) | (1,852.7) | (2,530.6) | 107.4% | 51.8% | - The change in net cash used in operating activities over Q2 2024 and Q1 2025 was mainly due to **increased payment related to inventory purchase**[22](index=22&type=chunk) [Business Outlook for Q3 2025](index=7&type=section&id=Business%20Outlook) This section provides the company's business outlook and guidance for vehicle deliveries and total revenues for the third quarter of 2025 Q3 2025 Business Outlook | Metric | Q3 2025 Guidance | YoY Change | | :--------------- | :--------------- | :--------- | | Vehicle Deliveries | 90,000 - 95,000 | -41.1% to -37.8% | | Total Revenues | RMB24.8 - RMB26.2 billion (US$3.5 - US$3.7 billion) | -42.1% to -38.8% | [Conference Call Details](index=7&type=section&id=Conference%20Call) This section provides details for the upcoming conference call to discuss financial results, including registration and replay information - Management will hold a conference call on **Thursday, August 28, 2025, at 8:00 a.m. U.S. Eastern Time** to discuss financial results[24](index=24&type=chunk) - Participants need to complete online registration to receive access information, with a replay accessible until September 4, 2025, and a live/archived webcast available on the Company's investor relations website[25](index=25&type=chunk)[26](index=26&type=chunk) [Non-GAAP Financial Measures Explanation](index=8&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the company's use of non-GAAP financial measures, their purpose, and limitations, along with reconciliation practices - The Company uses non-GAAP financial measures, such as **non-GAAP net income** and **free cash flow**, by excluding share-based compensation expenses and release of valuation allowance on deferred tax assets[28](index=28&type=chunk) - These measures help identify underlying business trends and enhance understanding of performance, but are not presented in accordance with U.S. GAAP and should not be considered in isolation[28](index=28&type=chunk)[29](index=29&type=chunk) - Limitations are mitigated by reconciling non-GAAP measures to the most comparable U.S. GAAP performance measures[30](index=30&type=chunk) [Exchange Rate Information](index=8&type=section&id=Exchange%20Rate%20Information) This section specifies the exchange rate used for all Renminbi to U.S. dollar translations within the report - All translations from Renminbi to U.S. dollars are made at a rate of **RMB7.1636 to US$1.00**, the exchange rate on June 30, 2025[31](index=31&type=chunk) [Company Overview](index=8&type=section&id=About%20Li%20Auto%20Inc.) This section provides an overview of Li Auto Inc., its mission, market position, and product strategy in the new energy vehicle sector - Li Auto Inc. is a leader in China's new energy vehicle market, designing, developing, manufacturing, and selling premium smart electric vehicles[32](index=32&type=chunk) - Its mission is: **Create a Mobile Home, Create Happiness**, pioneering in commercializing extended-range electric vehicles (EREVs) and building platforms for battery electric vehicles (BEVs)[32](index=32&type=chunk) - In-house development focuses on proprietary range extension systems, innovative electric vehicle technologies, and smart vehicle solutions, with a current model lineup including a flagship MPV, four Li L series EREVs, and one Li i series BEV SUV[32](index=32&type=chunk) [Safe Harbor Statement](index=9&type=section&id=Safe%20Harbor%20Statement) This section contains a safe harbor statement regarding forward-looking statements, outlining inherent risks and the company's disclosure obligations - This press release contains forward-looking statements subject to risks and uncertainties, including those related to business development, operating history, product quality, competition, and government policies[34](index=34&type=chunk) - Li Auto does not undertake any obligation to update these statements, except as required by applicable law[34](index=34&type=chunk) [Investor and Media Contact Information](index=9&type=section&id=For%20investor%20and%20media%20inquiries) This section provides contact details for investor and media inquiries regarding Li Auto Inc - For investor and media inquiries, contact Li Auto Inc. Investor Relations at **ir@lixiang.com** or Christensen Advisory at **Li@christensencomms.com**[35](index=35&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Li%20Auto%20Inc.%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the unaudited condensed consolidated financial statements, including statements of comprehensive income, balance sheets, and cash flows [Statements of Comprehensive Income](index=10&type=section&id=Li%20Auto%20Inc.%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the unaudited condensed consolidated statements of comprehensive income for the three months ended June 30, 2024, March 31, 2025, and June 30, 2025, detailing revenues, cost of sales, gross profit, operating expenses, and net income Unaudited Condensed Consolidated Statements of Comprehensive Income (Thousands, except per ADS/ordinary share data) | Metric | June 30, 2024 (RMB) | March 31, 2025 (RMB) | June 30, 2025 (RMB) | June 30, 2025 (US$) | | :---------------------------------------------- | :------------------ | :------------------- | :------------------ | :------------------ | | **Revenues:** | | | | | | Vehicle sales | 30,319,728 | 24,678,585 | 28,885,133 | 4,032,209 | | Other sales and services | 1,358,668 | 1,248,229 | 1,360,480 | 189,916 | | **Total revenues** | **31,678,396** | **25,926,814** | **30,245,613** | **4,222,125** | | **Cost of sales:** | | | | | | Vehicle sales | (24,635,504) | (19,801,927) | (23,273,292) | (3,248,826) | | Other sales and services | (865,950) | (806,428) | (905,352) | (126,382) | | **Total cost of sales** | **(25,501,454)** | **(20,608,355)** | **(24,178,644)** | **(3,375,208)** | | **Gross profit** | **6,176,942** | **5,318,459** | **6,066,969** | **846,917** | | **Operating expenses:** | | | | | | Research and development | (3,027,581) | (2,513,854) | (2,810,170) | (392,285) | | Selling, general and administrative | (2,815,105) | (2,531,009) | (2,717,761) | (379,385) | | Other operating income/(expense), net | 133,773 | (1,942) | 287,980 | 40,200 | | **Total operating expenses** | **(5,708,913)** | **(5,046,805)** | **(5,239,951)** | **(731,470)** | | **Income from operations** | **468,029** | **271,654** | **827,018** | **115,447** | | **Other (expense)/income:** | | | | | | Interest expense | (43,231) | (48,220) | (49,776) | (6,948) | | Interest income and investment income, net | 370,034 | 516,261 | 496,454 | 69,302 | | Others, net | 383,237 | 34,730 | 15,288 | 2,135 | | **Income before income tax** | **1,178,069** | **774,425** | **1,288,984** | **179,936** | | Income tax expense | (77,129) | (127,780) | (192,048) | (26,809) | | **Net income** | **1,100,940** | **646,645** | **1,096,936** | **153,127** | | Less: Net (loss)/income attributable to noncontrolling interests | (1,653) | (3,679) | 4,365 | 609 | | **Net income attributable to ordinary shareholders of Li Auto Inc.** | **1,102,593** | **650,324** | **1,092,571** | **152,518** | | **Net income** | **1,100,940** | **646,645** | **1,096,936** | **153,127** | | **Other comprehensive income/(loss), net of tax** | | | | | | Foreign currency translation adjustment, net of nil tax | 12,444 | (69,994) | (173,612) | (24,235) | | **Total other comprehensive income/(loss), net of tax** | **12,444** | **(69,994)** | **(173,612)** | **(24,235)** | | **Total comprehensive income** | **1,113,384** | **576,651** | **923,324** | **128,892** | | Less: Net (loss)/income attributable to noncontrolling interests | (1,653) | (3,679) | 4,365 | 609 | | **Comprehensive income attributable to ordinary shareholders of Li Auto Inc.** | **1,115,037** | **580,330** | **918,959** | **128,283** | | **Weighted average number of ADSs** | | | | | | Basic | 994,833,579 | 1,004,099,494 | 1,005,986,033 | 1,005,986,033 | | Diluted | 1,062,428,185 | 1,069,104,610 | 1,071,261,046 | 1,071,261,046 | | **Net earnings per ADS attributable to ordinary shareholders** | | | | | | Basic | 1.11 | 0.65 | 1.09 | 0.15 | | Diluted | 1.05 | 0.62 | 1.03 | 0.14 | | **Weighted average number of ordinary shares** | | | | | | Basic | 1,989,667,158 | 2,008,198,987 | 2,011,972,066 | 2,011,972,066 | | Diluted | 2,124,856,370 | 2,138,209,219 | 2,142,522,091 | 2,142,522,091 | | **Net earnings per share attributable to ordinary shareholders** | | | | | | Basic | 0.55 | 0.32 | 0.54 | 0.08 | | Diluted | 0.52 | 0.31 | 0.51 | 0.07 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Li%20Auto%20Inc.%20Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets as of December 31, 2024, and June 30, 2025, detailing assets, liabilities, and equity Unaudited Condensed Consolidated Balance Sheets (Thousands) | Metric | December 31, 2024 (RMB) | June 30, 2025 (RMB) | June 30, 2025 (US$) | | :---------------------------------------------- | :---------------------- | :------------------ | :------------------ | | **ASSETS** | | | | | **Current assets:** | | | | | Cash and cash equivalents | 65,901,123 | 49,790,369 | 6,950,468 | | Restricted cash | 6,849 | 6,597 | 921 | | Time deposits and short-term investments | 46,904,548 | 57,128,448 | 7,974,824 | | Trade receivable | 135,112 | 85,698 | 11,963 | | Inventories | 8,185,604 | 11,732,340 | 1,637,772 | | Prepayments and other current assets | 5,176,546 | 4,793,124 | 669,094 | | **Total current assets** | **126,309,782** | **123,536,576** | **17,245,042** | | **Non-current assets:** | | | | | Long-term investments | 922,897 | 827,727 | 115,546 | | Property, plant and equipment, net | 21,140,933 | 22,031,465 | 3,075,474 | | Operating lease right-of-use assets, net | 8,323,963 | 9,100,442 | 1,270,373 | | Intangible assets, net | 914,951 | 933,707 | 130,340 | | Goodwill | 5,484 | 5,484 | 766 | | Deferred tax assets | 2,542,180 | 2,855,550 | 398,619 | | Other non-current assets | 2,188,888 | 1,995,054 | 278,499 | | **Total non-current assets** | **36,039,296** | **37,749,429** | **5,269,617** | | **Total assets** | **162,349,078** | **161,286,005** | **22,514,659** | | **LIABILITIES AND EQUITY** | | | | | **Current liabilities:** | | | | | Short-term borrowings | 281,102 | 6,391,223 | 892,180 | | Trade and notes payable | 53,596,194 | 49,967,321 | 6,975,169 | | Amounts due to related parties | 11,492 | 18,176 | 2,537 | | Deferred revenue, current | 1,396,489 | 1,405,462 | 196,195 | | Operating lease liabilities, current | 1,438,092 | 1,632,735 | 227,921 | | Finance lease liabilities, current | 95,205 | 100,971 | 14,095 | | Accruals and other current liabilities | 12,397,322 | 11,696,368 | 1,632,748 | | **Total current liabilities** | **69,215,896** | **71,212,256** | **9,940,845** | | **Non-current liabilities:** | | | | | Long-term borrowings | 8,151,598 | 1,834,260 | 256,053 | | Deferred revenue, non-current | 720,531 | 663,117 | 92,568 | | Operating lease liabilities, non-current | 5,735,738 | 6,354,236 | 887,017 | | Finance lease liabilities, non-current | 642,984 | 602,495 | 84,105 | | Deferred tax liabilities | 864,999 | 762,974 | 106,507 | | Other non-current liabilities | 5,696,950 | 6,228,174 | 869,420 | | **Total non-current liabilities** | **21,812,800** | **16,445,256** | **2,295,670** | | **Total liabilities** | **91,028,696** | **87,657,512** | **12,236,515** | | **Total Li Auto Inc. shareholders' equity** | **70,874,884** | **73,122,309** | **10,207,483** | | Noncontrolling interests | 445,498 | 506,184 | 70,661 | | **Total shareholders' equity** | **71,320,382** | **73,628,493** | **10,278,144** | | **Total liabilities and shareholders' equity** | **162,349,078** | **161,286,005** | **22,514,659** | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Li%20Auto%20Inc.%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows for the three months ended June 30, 2024, March 31, 2025, and June 30, 2025, outlining cash flows from operating, investing, and financing activities Unaudited Condensed Consolidated Statements of Cash Flows (Thousands) | Metric | June 30, 2024 (RMB) | March 31, 2025 (RMB) | June 30, 2025 (RMB) | June 30, 2025 (US$) | | :---------------------------------------------- | :------------------ | :------------------- | :------------------ | :------------------ | | Net cash used in operating activities | (429,397) | (1,700,968) | (3,036,219) | (423,840) | | Net cash used in investing activities | (3,839,308) | (10,959,789) | (226,724) | (31,649) | | Net cash (used in)/provided by financing activities | (104,743) | 61,406 | (70,037) | (9,777) | | Effect of exchange rate changes on cash, cash equivalents and restricted cash | 32,257 | (70,282) | (108,393) | (15,131) | | Net change in cash, cash equivalents and restricted cash | (4,341,191) | (12,669,633) | (3,441,373) | (480,397) | | Cash, cash equivalents and restricted cash at beginning of period | 85,129,987 | 65,907,972 | 53,238,339 | 7,431,786 | | Cash, cash equivalents and restricted cash at end of period | 80,788,796 | 53,238,339 | 49,796,966 | 6,951,389 | | Net cash used in operating activities | (429,397) | (1,700,968) | (3,036,219) | (423,840) | | Capital expenditures | (1,423,332) | (829,597) | (805,544) | (112,450) | | Free cash flow (non-GAAP) | (1,852,729) | (2,530,565) | (3,841,763) | (536,290) | [Reconciliation of GAAP and Non-GAAP Results](index=13&type=section&id=Li%20Auto%20Inc.%20Unaudited%20Reconciliation%20of%20U.S.%20GAAP%20and%20Non-GAAP%20Results) This section provides a detailed reconciliation of U.S. GAAP financial measures to non-GAAP financial measures for various income statement items, adjusting for share-based compensation expenses Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results (Thousands, except per ADS/ordinary share data) | Metric | June 30, 2024 (RMB) | March 31, 2025 (RMB) | June 30, 2025 (RMB) | June 30, 2025 (US$) | | :---------------------------------------------- | :------------------ | :------------------- | :------------------ | :------------------ | | Cost of sales | (25,501,454) | (20,608,355) | (24,178,644) | (3,375,208) | | Share-based compensation expenses | 7,652 | 7,196 | 8,135 | 1,136 | | **Non-GAAP cost of sales** | **(25,493,802)** | **(20,601,159)** | **(24,170,509)** | **(3,374,072)** | | Research and development expenses | (3,027,581) | (2,513,854) | (2,810,170) | (392,285) | | Share-based compensation expenses | 224,332 | 238,932 | 236,668 | 33,038 | | **Non-GAAP research and development expenses** | **(2,803,249)** | **(2,274,922)** | **(2,573,502)** | **(359,247)** | | Selling, general and administrative expenses | (2,815,105) | (2,531,009) | (2,717,761) | (379,385) | | Share-based compensation expenses | 170,129 | 121,511 | 126,413 | 17,647 | | **Non-GAAP selling, general and administrative expenses** | **(2,644,976)** | **(2,409,498)** | **(2,591,348)** | **(361,738)** | | Income from operations | 468,029 | 271,654 | 827,018 | 115,447 | | Share-based compensation expenses | 402,113 | 367,639 | 371,216 | 51,821 | | **Non-GAAP income from operations** | **870,142** | **639,293** | **1,198,234** | **167,268** | | Net income | 1,100,940 | 646,645 | 1,096,936 | 153,127 | | Share-based compensation expenses | 402,113 | 367,639 | 371,216 | 51,821 | | **Non-GAAP net income** | **1,503,053** | **1,014,284** | **1,468,152** | **204,948** | | Net income attributable to ordinary shareholders of Li Auto Inc. | 1,102,593 | 650,324 | 1,092,571 | 152,518 | | Share-based compensation expenses | 402,113 | 367,639 | 371,216 | 51,821 | | **Non-GAAP net income attributable to ordinary shareholders of Li Auto Inc.** | **1,504,706** | **1,017,963** | **1,463,787** | **204,339** | | Weighted average number of ADSs | | | | | | Basic | 994,833,579 | 1,004,099,494 | 1,005,986,033 | 1,005,986,033 | | Diluted | 1,062,428,185 | 1,069,104,610 | 1,071,261,046 | 1,071,261,046 | | **Non-GAAP net earnings per ADS attributable to ordinary shareholders** | | | | | | Basic | 1.51 | 1.01 | 1.46 | 0.20 | | Diluted | 1.42 | 0.96 | 1.37 | 0.19 | | Weighted average number of ordinary shares | | | | | | Basic | 1,989,667,158 | 2,008,198,987 | 2,011,972,066 | 2,011,972,066 | | Diluted | 2,124,856,370 | 2,138,209,219 | 2,142,522,091 | 2,142,522,091 | | **Non-GAAP net earnings per share attributable to ordinary shareholders** | | | | | | Basic | 0.76 | 0.51 | 0.73 | 0.10 | | Diluted | 0.71 | 0.48 | 0.69 | 0.10 |

来源：市场资讯 （来源：CNMO科技） 【CNMO科技消息】据CNMO了解，8月29日，理想汽车公布2025年第二季度财务报告。报告显示，该 公司第二季度营业收入为302.46亿元，同比下降4.5%；归属于普通股股东的净利润为10.97亿元，同比 略微下降0.4%。值得一提的是，这是理想汽车连续第十一个季度保持盈利的新记录。 理想汽车 官方信息显示，2025年第二季度理想汽车交付量为111074辆，同比增长2.3%。截至2025年6月30日，公 司在全国151个城市拥有530家零售中心，在222个城市运营511家售后维修中心及理想汽车授权钣喷中 心。财务方面，2025年第二季度车辆毛利率为19.4%，较2024年同期的18.7%有所提升；整体毛利率为 20.1%。 回顾此前业绩，理想汽车2025年第一季度交付了92864辆新车，同比增长15.5%，营收为259亿元，实现 净利润6.47亿元，同比增长9.4%。 CNMO注意到，理想汽车董事长李想此前表示，理想汽车将继续推进在纯电车与智能领域的创新，期待 9月理想i6的上市进一步扩大产品矩阵。另外，首席财务官李铁也表示，理想汽车财务表现稳健，收入 和毛利率均保持 ...

Core Insights - Li Auto reported Q2 revenue of 30.2 billion yuan, a year-on-year decrease of 4.5% but a quarter-on-quarter increase of 16.7% [1] - Automotive revenue was 28.9 billion yuan, down 4.7% year-on-year but up 17% quarter-on-quarter [1] - The company delivered 111,000 vehicles in Q2, representing a year-on-year growth of 2.3% [1] - Net profit for Q2 was 1.1 billion yuan, a slight year-on-year decline of 0.4% but a significant quarter-on-quarter increase of 69.6% [1] - Gross margin stood at 20.1%, an increase of 0.6 percentage points year-on-year [1]

Core Viewpoint - Li Auto reported a strong financial performance for Q2, with revenue of 30.2 billion yuan and a net profit of 1.1 billion yuan, marking its 11th consecutive quarter of profitability, indicating a successful financial model and a shift in market focus from profitability to maintaining profit quality and expanding competitive advantages [2][4][6]. Financial Performance - Revenue for Q2 reached 31.7 billion yuan, a 16.7% increase from the previous quarter, while net profit rose by 69.6% to 1.1 billion yuan [2][3]. - Vehicle sales revenue was 30.3 billion yuan, with a vehicle gross margin of 19.4%, reflecting a 0.7 percentage point increase year-on-year due to cost optimization and economies of scale [3][4]. - Operating profit was 827 million yuan, with an operating profit margin of 2.7%, demonstrating significant efficiency improvements [4][6]. Research and Development - The company invested 2.8 billion yuan in R&D during Q2, with an annual forecast exceeding 10 billion yuan, focusing over 60% of funds on artificial intelligence and core intelligent systems [4][5]. - Li Auto launched several self-developed technologies, including the world's first VLA driver model and the "Li Xiang Classmate" intelligent assistant, enhancing user experience [4][5]. Product Development and Market Position - The launch of the six-seat electric SUV Li Auto i8 began deliveries on August 20, with expectations to deliver over 8,000 units by the end of September [4][5]. - The company is entering a competitive phase with multiple models, including the upcoming i6, while also experiencing strong sales of the MEGA Home [4][5]. Sales and Service Network - By the end of Q2, Li Auto had 530 retail centers and 511 service outlets, with a significant increase in charging infrastructure, including 3,028 supercharging stations and over 16,000 charging piles [5]. - The company’s self-built charging network allows for better control over the charging experience, enhancing customer satisfaction and operational efficiency [5]. Financial Stability - Despite a negative free cash flow of 3.8 billion yuan due to new model development and R&D investments, the company maintained a strong cash reserve of 106.9 billion yuan, sufficient to support long-term R&D and expansion needs [5][6]. - The resilience of the financial structure enables Li Auto to remain profitable while managing short-term cash flow fluctuations [6].

Core Insights - Li Auto is expected to launch its first AI glasses as early as next month, coinciding with the release of its new vehicle [2] - The company has been planning its AI glasses for a while, having established two new secondary departments focused on "space robots" and "wearable robots" [2] - The AI glasses will emphasize AI voice interaction and may leverage the Li Xiang Classmate App, which was launched in December last year [2] Company Developments - The "wearable robots" department, which oversees the AI glasses project, is led by Senior Vice President Fan Haoyu [2] - The Li Xiang Classmate App is a multimodal AI application that allows users to identify objects and obtain information through voice queries [2] Industry Trends - The global smart glasses market is on the verge of a significant increase, with Counterpoint Research reporting a projected 110% year-on-year growth in shipments by the first half of 2025 [2] - Major tech companies, including Meta and Alibaba, are expected to release new AI smart glasses starting in the second half of 2025 [2]