2023-05-10 13:20Financial Performance - Li Auto Inc. reported unaudited consolidated financial results for the three months ended March 31, 2023[1]. - The company’s revenue for the first quarter of 2023 was approximately $1.1 billion, representing a year-over-year increase of 80%[1]. - Vehicle deliveries reached 52,000 units in Q1 2023, a 65% increase compared to the same period last year[1]. - Gross profit margin for the first quarter was 18%, up from 15% in Q1 2022[1]. - The company reported a net loss of $100 million for the first quarter, compared to a net loss of $80 million in Q1 2022[1]. - Vehicle sales revenue increased from RMB 9,308,609 thousand in Q1 2022 to RMB 18,327,316 thousand in Q1 2023, representing a growth of 96.5%[7]. - Total revenue rose from RMB 9,562,036 thousand in Q1 2022 to RMB 18,787,053 thousand in Q1 2023, an increase of 96.5%[7]. - The net profit attributable to ordinary shareholders increased significantly from a loss of RMB 10,866 thousand in Q1 2022 to a profit of RMB 135,371 thousand in Q1 2023[7]. - The company reported a diluted earnings per share of RMB 0.06 for Q1 2023, compared to a loss per share of RMB 0.01 in Q1 2022[7]. - The total comprehensive income for Q1 2023 was RMB 139,391 thousand, a significant recovery from a loss of RMB 95,982 thousand in Q1 2022[7]. - The adjusted net profit for the three months ended March 31, 2023, was RMB 1.41 billion (USD 205.9 million), compared to an adjusted net profit of RMB 477.1 million for the same period in 2022[111]. Cash Flow and Liquidity - Li Auto's cash and cash equivalents as of March 31, 2023, were approximately $2.5 billion, providing a strong liquidity position for future investments[1]. - Cash and cash equivalents increased to RMB 34,716,572 thousand as of March 31, 2023, compared to RMB 30,493,064 thousand at the beginning of the period, representing a net increase of approximately 7.3%[10]. - For the three months ended March 31, 2023, the net cash flow from operating activities was RMB 1,132,909 thousand, a significant increase compared to RMB 933,837 thousand for the same period in 2022, reflecting a growth of approximately 21.4%[9]. - The net cash generated from operating activities for Q1 2023 was RMB 7.78 billion (USD 1.13 billion), primarily due to adjustments for non-cash items of RMB 727.3 million (USD 105.9 million) and changes in operating assets and liabilities of RMB 6.12 billion (USD 891.0 million)[110]. - The net cash used in investing activities for the three months ended March 31, 2023, was RMB 2.69 billion (USD 392.1 million), mainly attributed to net purchases of short-term investments of RMB 1.52 billion (USD 222.0 million) and purchases of property, plant, and equipment, and intangible assets of RMB 1.08 billion (USD 157.0 million)[110]. - The net cash used in financing activities for the three months ended March 31, 2023, was RMB 195.8 million (USD 28.5 million), primarily due to the repayment of loans from several commercial banks in China amounting to RMB 196.3 million (USD 28.6 million)[110]. Research and Development - Li Auto is investing in R&D to enhance battery technology and autonomous driving capabilities[1]. - Research and development expenses increased from RMB 1,373,962 thousand in Q1 2022 to RMB 1,852,297 thousand in Q1 2023, a rise of 34.8%[7]. - The company plans to enhance its technological capabilities through ongoing research and development initiatives, aiming to improve product efficiency and customer satisfaction[11]. Market Expansion and Product Development - The company aims to achieve a revenue growth of 50% year-over-year for the full year 2023[1]. - Li Auto plans to launch new models, including a new electric vehicle, in the second half of 2023[1]. - The company is focusing on expanding its market presence in international markets, particularly in Europe[1]. - The company expects total revenue from sales and services to grow significantly in the upcoming quarters as it expands its market presence in China[11]. - The company is focused on the development of new energy vehicles, which is expected to drive future growth and innovation in product offerings[11]. Financial Position and Assets - Total current assets rose to RMB 73,067,016 from RMB 66,992,487, marking an increase of about 9.5%[5]. - Total assets increased to RMB 94,012,432 from RMB 86,537,951, reflecting a growth of approximately 8.5%[6]. - Total liabilities increased to RMB 47,380,792 from RMB 41,351,644, which is an increase of about 14.6%[6]. - Shareholders' equity totalled RMB 46,631,640 as of March 31, 2023, up from RMB 45,186,307, indicating a growth of approximately 3.2%[6]. - The company's accumulated losses as of March 31, 2023, were RMB 7,888,182, compared to RMB 8,817,850 as of December 31, 2022, indicating a reduction of approximately 10.5%[6]. Inventory and Cost Management - Inventory increased to RMB 54,033 from RMB 48,381, representing a growth of approximately 11.0%[5]. - The company reported that the cost of automobile sales includes direct production and material costs, labor costs, manufacturing expenses, and warranty cost reserves[38]. - The company regularly reassesses the adequacy of warranty reserves due to the uncertainty associated with warranty estimates[29]. Shareholder Information - The total number of ordinary shares issued and outstanding increased from 1,954,353,892 as of December 31, 2022, to 1,959,698,486 as of March 31, 2023[65]. - The company recognized a total share-based compensation expense of RMB 480,229 for the three months ended March 31, 2023, slightly down from RMB 487,951 for the same period in 2022[68]. - The company has not declared or paid any cash dividends and does not plan to do so in the foreseeable future[74]. Taxation and Compliance - The estimated effective tax rate for 2023 is lower than the statutory rate of 25% due to exemptions and the use of prior net operating losses[83]. - The group is entitled to a 15% corporate income tax rate as a "high-tech enterprise" in China, with a tax exemption for the first two years of profitability for certain subsidiaries[81]. - The group can deduct 200% of R&D expenses for tax purposes until December 31, 2023, as announced by the State Taxation Administration[81]. Safety and Environmental Initiatives - The Li Auto L8 received the highest safety rating (G) in three out of four tests conducted by the China Insurance Automotive Safety Index (C-IASI) in April 2023[97]. - The Li Auto L9 achieved a comprehensive score of 91.3% in the latest C-NCAP tests, earning a five-star safety certification[97]. - The company released its 2022 Environmental, Social, and Governance (ESG) report on April 21, 2023, detailing its ESG strategies and performance[98].