LI AUTO(02015)2024-08-28 09:03Financial Performance - Revenue for the first half of 2024 increased by 20.8% to RMB 57.312 billion compared to the same period in 2023[2] - Net profit for the first half of 2024 decreased by 47.8% to RMB 1.692 billion compared to the same period in 2023[2] - Non-GAAP net profit for the first half of 2024 decreased by 32.9% to RMB 2.779 billion compared to the same period in 2023[2] - The company's total revenue for the first half of 2024 reached RMB 57.31 billion, a 20.8% increase compared to the same period in 2023[16] - The company's gross profit for the first half of 2024 was RMB 11.46 billion, a 13.9% increase compared to the same period in 2023[16] - The company's net profit attributable to ordinary shareholders for the first half of 2024 was RMB 1.70 billion, a 47.4% decrease compared to the same period in 2023[16] - The company's operating loss for the first half of 2024 was RMB 116.87 million, compared to an operating profit of RMB 2.03 billion in the same period in 2023[16] - Total revenue increased by 20.8% from RMB 47.4 billion in the first half of 2023 to RMB 57.3 billion in the first half of 2024[17] - Vehicle sales revenue grew by 17.9% from RMB 46.3 billion in the first half of 2023 to RMB 54.6 billion in the first half of 2024, driven by increased vehicle deliveries[17] - Other sales and service revenue surged by 140.3% from RMB 1.1 billion in the first half of 2023 to RMB 2.7 billion in the first half of 2024, due to increased sales of accessories and charging equipment[17] - Gross profit rose by 13.9% from RMB 10.1 billion in the first half of 2023 to RMB 11.5 billion in the first half of 2024, while gross margin declined from 21.2% to 20.0%[19] - Net profit decreased from RMB 3.2 billion in the first half of 2023 to RMB 1.7 billion in the first half of 2024[24] - Vehicle sales revenue increased to RMB 54,571,281 thousand in the first half of 2024, up 17.87% from RMB 46,299,260 thousand in the same period of 2023[36] - Total revenue grew to RMB 57,312,056 thousand in H1 2024, a 20.81% increase compared to RMB 47,439,780 thousand in H1 2023[36] - Gross profit rose to RMB 11,461,247 thousand in H1 2024, up 13.87% from RMB 10,065,384 thousand in H1 2023[36] - Operating expenses increased significantly to RMB 11,578,120 thousand in H1 2024, a 44.12% jump from RMB 8,034,311 thousand in H1 2023[36] - Net profit attributable to Li Auto's ordinary shareholders decreased to RMB 1,695,151 thousand in H1 2024, down 47.41% from RMB 3,222,821 thousand in H1 2023[37] - Basic earnings per share dropped to RMB 0.85 in H1 2024, a 48.17% decrease from RMB 1.64 in H1 2023[37] - Diluted earnings per share fell to RMB 0.80 in H1 2024, a 48.05% decline from RMB 1.54 in H1 2023[37] - Total comprehensive income attributable to Li Auto's ordinary shareholders decreased to RMB 1,647,659 thousand in H1 2024, down 47.35% from RMB 3,129,619 thousand in H1 2023[37] - Total revenue for the six months ended June 30, 2024, was RMB 57,312,056 thousand, with vehicle sales contributing RMB 54,571,281 thousand and other sales and services contributing RMB 2,429,086 thousand[54] - Revenue recognized at a point in time, including vehicle sales and other sales and services, increased from RMB 47,349,758 thousand in 2023 to RMB 57,000,367 thousand in 2024[54] - Basic earnings per share for the six months ended June 30, 2024, were RMB 0.85, compared to RMB 1.64 for the same period in 2023[57] - Diluted earnings per share for the six months ended June 30, 2024, were RMB 0.80, compared to RMB 1.54 for the same period in 2023[57] Vehicle Deliveries and Market Share - Delivery volume in the first half of 2024 increased by 35.8% to 188,981 vehicles compared to the same period in 2023[5] - Cumulative delivery volume reached 822,345 vehicles by June 30, 2024, making the company the first Chinese new energy vehicle brand to surpass 800,000 cumulative deliveries[5] - The company achieved a 14.1% market share in the RMB 200,000 and above new energy vehicle market in China during the first half of 2024[5] - The company delivered 51,000 vehicles in July 2024, a 49.4% increase compared to July 2023[12] - The company maintained the top sales position among new energy vehicle brands in China for 10 consecutive weeks as of June 30, 2024[6] Product Launches and Features - The Ideal MEGA, launched on March 1, 2024, features an 800V high-voltage pure electric platform and can achieve a 500 km range with a 12-minute charge[6] - The Ideal L6, launched on April 18, 2024, achieved a cumulative delivery volume of over 50,000 units within three months of its launch[6] Manufacturing and Operations - The company operates manufacturing bases in Changzhou and Beijing, utilizing highly automated, intelligent, and digital production lines[8] - The company expanded its direct sales and service network to 497 retail centers in 148 cities and 421 after-sales service centers in 220 cities by June 30, 2024[9] - The company's supercharging network reached 614 stations with 2,726 charging piles by June 30, 2024[9] - The company's supercharging network expanded to 701 stations with 3,260 charging piles by July 31, 2024[12] R&D and Technology - The company's R&D expenses for the first half of 2024 increased to RMB 6.08 billion, a 42.0% increase compared to the same period in 2023[16] - R&D expenses increased by 42.0% from RMB 4.3 billion in the first half of 2023 to RMB 6.1 billion in the first half of 2024, driven by product expansion and increased employee compensation[20] - The company's intelligent driving system achieved a 99.9% user penetration rate and accumulated 860 million kilometers of full-scenario NOA mileage by June 30, 2024[10] - The company benefits from a 200% super deduction for R&D expenses in China, applicable from January 1, 2023, until further notice[61] Cash Flow and Financial Position - Cash position decreased by 6.2% from RMB 103.7 billion as of December 31, 2023, to RMB 97.3 billion as of June 30, 2024[24] - The company's asset-liability ratio improved to 56.4% as of June 30, 2024, compared to 57.8% as of December 31, 2023[26] - Cash and cash equivalents decreased from RMB 91,329,030 thousand as of December 31, 2023, to RMB 80,783,571 thousand as of June 30, 2024[38] - Total current assets decreased from RMB 114,525,584 thousand as of December 31, 2023, to RMB 109,807,632 thousand as of June 30, 2024[38] - Total non-current assets increased from RMB 28,941,887 thousand as of December 31, 2023, to RMB 35,302,567 thousand as of June 30, 2024[38] - Total liabilities decreased from RMB 82,892,249 thousand as of December 31, 2023, to RMB 81,796,324 thousand as of June 30, 2024[39] - Net cash used in operating activities was RMB 3,771,783 thousand for the six months ended June 30, 2024, compared to net cash provided by operating activities of RMB 18,892,761 thousand for the same period in 2023[40] - Net cash used in investing activities increased from RMB 4,881,188 thousand for the six months ended June 30, 2023, to RMB 6,937,514 thousand for the six months ended June 30, 2024[40] - Net cash provided by financing activities was RMB 80,514 thousand for the six months ended June 30, 2024, compared to net cash used in financing activities of RMB 2,049,403 thousand for the same period in 2023[40] - Total equity increased from RMB 60,575,222 thousand as of December 31, 2023, to RMB 63,313,875 thousand as of June 30, 2024[39] Employee and Compensation - Employee compensation expenses increased to RMB 7.1 billion in the first half of 2024, up from RMB 4.8 billion in the first half of 2023[29] - The company had a total of 30,899 employees as of June 30, 2024, with 5,373 in R&D, 11,095 in production, 12,083 in sales, and 2,348 in general and administrative roles[30] Accounts and Liabilities - Accounts receivable increased from 143,523 thousand to 157,954 thousand between December 31, 2023, and June 30, 2024, with the majority (117,671 thousand) being within 3 months[46] - Accounts payable and notes payable decreased from 51,870,097 thousand to 46,832,038 thousand between December 31, 2023, and June 30, 2024, with the majority (36,668,837 thousand) being within 3 months[48] - Short-term borrowings decreased significantly from 6,975,399 thousand to 922,219 thousand between December 31, 2023, and June 30, 2024, primarily due to the repayment of convertible debt[49] - Long-term borrowings increased from 1,747,070 thousand to 7,982,516 thousand between December 31, 2023, and June 30, 2024, mainly due to the issuance of new convertible debt[49] - The company issued convertible debt with a total principal of 862,500 thousand USD in April 2021, which will mature in 2028 with an annual interest rate of 0.25%[50] - The company issued bonds worth 700,000 thousand CNY in November 2023 with a one-year term and an annual interest rate of 2.50%[51] - The company's secured borrowings increased slightly from 1,802,672 thousand to 1,831,412 thousand between December 31, 2023, and June 30, 2024, with interest rates ranging from 5-year LPR minus 0.80% to 5-year LPR minus 0.60%[51] - The company obtained a credit-guaranteed loan of RMB 200,000 thousand with an annual interest rate of approximately 1-year LPR minus 0.75%, maturing on July 26, 2025. RMB 50,000 thousand of this loan was repaid in the first half of 2024[52] - As of June 30, 2024, the company secured another credit-guaranteed loan of RMB 150,000 thousand with an annual interest rate of approximately 1-year LPR minus 1.01%, also maturing on July 26, 2025[52] - The weighted average interest rate for short-term borrowings (excluding convertible debt) was 2.69% as of December 31, 2023, and decreased to 2.58% as of June 30, 2024[52] Taxation and Dividends - The company's subsidiaries in China benefit from a preferential corporate income tax rate of 15% due to their status as high-tech enterprises[60] - Beijing Rockwells Technology Co., Ltd. is eligible for a 0% corporate income tax rate in 2023 and a 12.5% preferential tax rate in 2024 as a "National Encouraged Key Software Enterprise"[60] - The company's current income tax expense for the six months ended June 30, 2024, was 181,009 thousand, with a deferred tax benefit of 19,434 thousand, resulting in a total tax expense of 161,575 thousand[65] - The company is subject to a 3% consumption tax and related surcharges on sales of extended-range electric vehicles[66] - No interim dividend was recommended for the six months ended June 30, 2023, and June 30, 2024[66] - The company's Hong Kong subsidiaries are subject to a 16.5% profits tax on taxable income generated in Hong Kong, with no withholding tax on dividends paid to the parent company[63] - Singapore subsidiaries are subject to a 17% corporate income tax on income derived from or deemed derived from Singapore, with no withholding tax on dividends paid to the parent company[64] - The company may be subject to a 10% withholding tax on dividends distributed to non-resident foreign investors in China, unless a tax treaty provides for a lower rate[61] - The company's tax strategy includes leveraging tax treaties and arrangements to minimize withholding tax rates on dividends, interest, and royalties[62] Legal and Compliance - The company did not recommend any interim dividend for the six months ended June 30, 2024[35] - The company had no significant litigation or arbitration that would materially adversely affect its financial position or operating results as of June 30, 2024[35]