2025-09-08 08:40Financial Performance - For the first half of 2025, Li Auto achieved a total revenue of RMB 56.17 billion, a decrease of 2.0% compared to RMB 57.31 billion in the same period of 2024[9]. - The net profit for the first half of 2025 was RMB 1.74 billion, an increase of 3.0% from RMB 1.69 billion in the same period of 2024[9]. - The pre-tax profit for the first half of 2025 was RMB 2.06 billion, reflecting an increase of 11.3% compared to RMB 1.85 billion in the first half of 2024[9]. - The company reported a non-GAAP net profit of RMB 2.48 billion for the first half of 2025, a decrease of 10.7% from RMB 2.78 billion in the same period of 2024[9]. - Total revenue decreased by 2.0% from RMB 57,312 million for the six months ended June 30, 2024, to RMB 56,172 million for the six months ended June 30, 2025[30]. - Vehicle sales revenue decreased by 1.8% from RMB 54,571 million to RMB 53,563 million, primarily due to a lower average selling price influenced by product mix and increased sales incentives[30]. - Gross profit decreased by 0.7% from RMB 11,461 million to RMB 11,385 million, while gross margin increased from 20.0% to 20.3%[32]. - Operating profit improved to RMB 1,098 million for the six months ended June 30, 2025, compared to an operating loss of RMB 116.9 million for the same period in 2024[36]. - Net profit for the six months ended June 30, 2025, was RMB 1,743 million, showing relative stability compared to RMB 1,692 million for the same period in 2024[39]. Vehicle Deliveries and Market Position - The total vehicle deliveries for the first half of 2025 reached 203,938 units, representing a year-on-year growth of 7.9%[14]. - Li Auto's cumulative market share in the RMB 200,000 and above new energy vehicle market reached 13.6% in the first half of 2025, maintaining its position as the top-selling Chinese automotive brand[14]. - The company launched the Li MEGA Ultra Smart Refresh and the Li L Series Smart Refresh in the first half of 2025, enhancing user experience through product upgrades[15]. - The Li MEGA Home Special Edition became the best-selling MPV in the RMB 500,000 and above category since May 2025, and the top-selling pure electric vehicle in the same price range since June 2025[16]. - The company launched the Li Xiang i8, a six-seat pure electric SUV, featuring a 720 km CLTC range and a price of RMB 339,800, with deliveries starting on August 20, 2025[26]. - The company plans to launch the Li Xiang i6, a five-seat pure electric SUV, in September 2025, as part of its strategy to enrich its product matrix[27]. Research and Development - The company established its first overseas R&D center in Munich, Germany, in January 2025, focusing on next-generation technology research in four key areas[19]. - The company has developed a new generation of driver assistance technology, VLA driver model, enhancing user experience with advanced 3D spatial understanding and adaptive capabilities[17]. - The company allocated $44.2 million for R&D of next-generation electric vehicle technologies, $212.2 million for developing future platforms and vehicle models, and $213.2 million for working capital and general corporate purposes, utilizing approximately 89% of the net proceeds[119]. Financial Position and Cash Flow - Cash position as of June 30, 2025, was RMB 106.9 billion, down from RMB 112.8 billion as of December 31, 2024[40]. - The company's debt-to-asset ratio improved to 54.3% as of June 30, 2025, from 56.1% as of December 31, 2024[46]. - Total assets as of June 30, 2025, amounted to RMB 161,286,005, a slight decrease from RMB 162,349,078 as of December 31, 2024[134]. - Total liabilities decreased to RMB 87,657,512 as of June 30, 2025, from RMB 91,028,696 as of December 31, 2024, representing a reduction of 3.73%[134]. - Cash and cash equivalents decreased to RMB 49,790,369 as of June 30, 2025, from RMB 65,901,123 as of December 31, 2024, a decline of 24.48%[132]. - The company experienced a net cash outflow from financing activities, which shifted from RMB 80,514,000 inflow in 2024 to RMB 8,631,000 outflow in 2025[140]. Corporate Governance - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination and Corporate Governance Committee to oversee specific areas of the company's affairs[63]. - The Audit Committee is responsible for reviewing and supervising the group's financial reporting procedures, risk management, and internal control systems[64]. - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance corporate value[57]. - The company confirms compliance with the securities trading standards throughout the reporting period[62]. - The company will continue to regularly review and monitor its corporate governance practices to ensure adherence to high standards[65]. Employee and Shareholder Information - As of June 30, 2025, the company had a total of 31,018 employees, with 5,868 in R&D, 9,705 in production, 12,862 in sales, and 2,583 in general and administration[52]. - The total number of Class A shares held by Mr. Li is 108,557,400, representing 5.07% of the issued share capital[54]. - Mr. Li holds approximately 21.69% of the company's issued shares and controls about 68.15% of the voting rights for non-reserved matters[56]. - The company has adopted share incentive plans for 2019, 2020, and 2021[52]. - The company has a structured training system for employee skill enhancement, including pre-job training for new hires[51]. Regulatory and Compliance Risks - The variable interest entity structure may face regulatory risks due to restrictions on foreign investment in specific business sectors in China[155]. - The management believes the likelihood of incurring losses due to changes in ownership structure or contractual arrangements with VIEs is low[158]. - The company anticipates potential regulatory risks related to variable interest entities (VIEs) that could significantly impact business operations if legal compliance is not maintained[158]. - The management emphasizes that the enforceability of contracts with VIEs is subject to Chinese law, which may introduce uncertainties in legal protections[158].