2025-08-28 10:16Financial 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]