2022-08-31 09:00Financial Performance - Total deliveries for the first half of 2022 reached 60,403 units, a year-on-year increase of 100.3%[8] - Revenue for the first half of 2022 was RMB 18.3 billion, representing a year-on-year growth of 112.4%[4] - Gross profit for the same period was RMB 4.0 billion, an increase of 157.5% compared to the previous year[4] - The company reported a net loss of RMB 651.9 million for the first half of 2022, a 9.5% increase in loss compared to the previous year[4] - Non-GAAP operating loss for the first half of 2022 was RMB 445.97 million, a decrease of 24.5% compared to the previous year[7] - Vehicle sales revenue for the first half of 2022 reached RMB 17,792.2 million, compared to RMB 8,366.9 million in the first half of 2021, marking a growth of 112.1%[19] - The gross profit for the first half of 2022 was RMB 4,042.2 million, up from RMB 1,569.5 million in the same period of 2021, reflecting a gross margin improvement[19] - Operating loss increased by 47.5% to RMB 1.39 billion from RMB 943.6 million for the same period in 2021[25] - Net loss for the six months ended June 30, 2022, was RMB 651.9 million, a 9.5% increase from RMB 595.5 million in the prior year[28] Deliveries and Production - Cumulative deliveries of Li ONE since its launch reached 184,491 units as of June 30, 2022[8] - The company delivered 10,422 units of the Li ONE in July 2022, representing a year-over-year increase of 21.3% compared to July 2021[16] - The company experienced significant production disruptions in April 2022 due to COVID-19 outbreaks in the Yangtze River Delta region, affecting over 80% of its parts suppliers[108] - Following the COVID-19 disruptions, the company's vehicle production and delivery began to gradually recover and maintain pre-pandemic levels starting in May 2022[108] - The company has been actively collaborating with suppliers to restore production capacity and aims to shorten delivery wait times for customers of the Ideal ONE[108] Research and Development - Research and development expenses for the first half of 2022 totaled RMB 2,905.6 million, compared to RMB 1,167.9 million in the same period of 2021, indicating a focus on innovation[19] - The company aims to expand its product line by developing new range-extended electric vehicles and pure electric vehicles[9] - The company continues to invest in smart cockpit and smart driving technologies to enhance user experience[8] Cash and Liquidity - Cash and cash equivalents increased by 7.0% to RMB 53.65 billion from RMB 50.16 billion as of December 31, 2021[29] - The company reported a total cash inflow from redeeming short-term investments was RMB 34,682,250 thousand in the first half of 2022, compared to RMB 163,927,277 thousand in the same period of 2021, showing a decrease of approximately 78%[94] - The total cash, cash equivalents, and restricted cash at the end of June 30, 2022, amounted to RMB 37,095,020 thousand, up from RMB 13,827,058 thousand at the end of the previous year[95] Corporate Governance - The company has complied with all applicable provisions of the corporate governance code during the reporting period, except for the separation of roles between the Chairman and CEO, which are held by Mr. Li[43] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated interim results for the six months ended June 30, 2022[45] - The company has adopted sufficient corporate governance measures to manage potential conflicts of interest between different voting rights beneficiaries[48] Shareholder Information - As of June 30, 2022, the company had issued and outstanding ordinary shares of 1,932,641,538[195] - The net loss attributable to ordinary shareholders for the six months ended June 30, 2022, was $628,832, resulting in a basic and diluted loss per share of $0.33[196] - The company plans to issue up to $2,000,000 of American Depositary Shares through an ATM program, with 828,620 Class A ordinary shares issued but not yet accounted for as of June 30, 2022[194] Inventory and Assets - The company's inventory surged to RMB 3,006,695 thousand, up from RMB 1,617,890 thousand, marking an increase of around 85.6%[89] - The net value of property, plant, and equipment increased to RMB 7,367,707 thousand from RMB 4,498,269 thousand, representing a growth of approximately 63.4%[89] - The total non-current assets value increased to RMB 14,600,518 thousand, up from RMB 9,468,499 thousand, which is an increase of about 54.5%[89] Debt and Financing - The total borrowings increased from RMB 5,997,941 thousand as of December 31, 2021, to RMB 8,427,751 thousand as of June 30, 2022, indicating a rise of approximately 40%[171] - The company issued convertible debt amounting to RMB 5,533,238 thousand in the previous year, with no new issuance in the current period[95] - The company has secured bank loans totaling RMB 900,000 thousand, maturing on February 15, 2027, with an interest rate of 5-year LPR -0.40%[171] Revenue Recognition - The company recognized revenue primarily from the sale of vehicles, including the sale of the Li ONE and the Li Auto Plus membership, under ASC 606[128] - The revenue from the sale of vehicles is recognized when control is transferred to the customer, which includes various performance obligations[131] - The company generates tradable new energy vehicle credits by producing electric vehicles, with sales of these credits recognized as revenue upon transfer of control to the buyer, fully collected in Q4 2021[135] Future Outlook - The company aims to maintain its leading position in the Chinese new energy vehicle market by focusing on R&D and expanding its sales network[18] - The company plans to utilize the net proceeds from the ATM offering for R&D of next-generation electric vehicle technologies and general corporate purposes[15]