2022-04-19 08:45Financial Performance - Total revenue for 2021 reached RMB 27,009,779, an increase of 185.6% compared to RMB 9,456,609 in 2020[5] - Gross profit for 2021 was RMB 5,761,454, reflecting a growth of 271.9% from RMB 1,549,339 in 2020[5] - Operating loss for 2021 was RMB (1,017,320), a decrease of 52.0% from RMB (669,337) in 2020[5] - Net loss attributable to ordinary shareholders was RMB (1,812,713) in 2021, compared to RMB (838,142) in 2020, reflecting a change of 53.8%[5] - Non-GAAP operating loss for 2021 was RMB (526,542), while non-GAAP net loss was RMB (281,189)[7] - Vehicle sales revenue rose by 181.5% from RMB 9.28 billion in 2020 to RMB 26.13 billion in 2021, driven by increased vehicle deliveries[16] - Gross profit increased by 271.9% from RMB 1.55 billion in 2020 to RMB 5.76 billion in 2021, with a gross margin improvement from 16.4% to 21.3%[18] - Net loss increased by 112.0% from RMB 151.7 million for the year ended December 31, 2020, to RMB 321.5 million for the year ended December 31, 2021[24] - Cash and cash equivalents, restricted cash, time deposits, and short-term investments increased by 67.9% from RMB 29.87 billion as of December 31, 2020, to RMB 50.16 billion as of December 31, 2021, mainly due to the issuance of convertible preferred notes of USD 862.5 million and net proceeds of HKD 13.27 billion from the IPO in Hong Kong[25] - The company reported a net loss of RMB (151,657) thousand for the year ended December 31, 2021, compared to RMB (321,455) thousand in the previous year, marking a 52.8% improvement[189] Deliveries and Production - Total deliveries of Li ONE in 2021 amounted to 90,491 units, representing a year-on-year increase of 177.4%[8] - Cumulative deliveries of Li ONE since its launch reached 124,088 units by the end of 2021[8] - As of March 31, 2022, the company delivered 31,716 units of Li ONE, a 152.1% increase year-over-year[13] - The company plans to launch a new full-size luxury range-extended electric SUV in Q2 2022, featuring next-generation power systems and smart driving technology[14] - The Beijing manufacturing base commenced construction in October 2021 and is expected to be operational by 2023, enhancing production capacity for luxury electric vehicles[12] Research and Development - R&D expenses grew by 198.8% from RMB 1.10 billion in 2020 to RMB 3.29 billion in 2021, primarily due to an increase in personnel and new vehicle development activities[19] - The company continues to invest in smart driving and smart cockpit technologies to enhance user experience and safety[8] Financial Position - The total assets as of December 31, 2021, were RMB 61,848,913, compared to RMB 36,373,276 in 2020, marking an increase of about 70%[186] - Total liabilities as of December 31, 2021, were RMB 20,784,611, up from RMB 6,569,679 in 2020, representing an increase of approximately 216%[186] - Total equity as of December 31, 2021, was RMB 41,064,302, an increase from RMB 29,803,597 in 2020, reflecting a growth of about 38%[186] - The company’s capital commitments amounted to RMB 2.92 billion as of December 31, 2021, compared to RMB 259.2 million as of December 31, 2020, primarily related to the construction and purchase of production facilities, equipment, and tools[33] Governance and Compliance - The company operates under a dual-class share structure, where Class A shares have one vote per share and Class B shares have ten votes per share, allowing for control despite not holding the majority of economic interests[71] - The company has established a governance framework that aligns with best practices, as reflected in its corporate governance report for the year ending December 31, 2021[103] - The company has complied with all provisions of the Corporate Governance Code as of December 31, 2021, except for the separation of the roles of Chairman and CEO, which are held by Mr. Li[104] - The independent auditor issued an unqualified opinion regarding the continuing connected transactions disclosed in the annual report[70] Shareholder Information - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance[136] - Shareholders can propose candidates for the board of directors, with procedures available on the company's website[133] - The company has no proposed dividends for the year ended December 31, 2021[79] Risks and Challenges - The company faces potential supply chain challenges due to increased demand in the electric vehicle sector, impacting production in Q1 2022[14] - The company may encounter risks related to supply chain disruptions from suppliers of raw materials or components, particularly as some suppliers are sole sources[41] - The company is subject to various evolving Chinese laws and regulations related to data privacy and cybersecurity, which could result in penalties and damage to its reputation if not complied with[41] - The company may face significant adverse impacts if there are changes in government policies favoring new energy vehicles or domestic automobiles in China[42] Capital and Financing - The company issued convertible senior notes with a total principal amount of 862.5 million USD at an annual interest rate of 0.25%, maturing in 2028, which can be converted into approximately 60,861,104 Class A ordinary shares[77] - The company raised RMB 11,004,778 thousand from the Hong Kong IPO in 2021, contributing to the financing cash flow[192] Employee and Management Structure - The total number of employees as of December 31, 2021, was 11,901, with 3,415 in R&D, 1,880 in production, 6,019 in sales and marketing, and 587 in general and administrative services[34] - The senior management team includes key figures such as Li Xiang and Shen Yanan, who are responsible for the company's strategic direction and operational management[98] Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements fairly present the financial position of the group as of December 31, 2021[177] - The audit aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[183] - The auditor evaluates the appropriateness of accounting policies and the reasonableness of accounting estimates and related disclosures[184]