2025-08-28 09:52Second Quarter 2025 Financial Results Overview Li Auto Inc. reported its operational and financial performance for the second quarter of 2025, highlighting vehicle deliveries and key financial metrics Operating Highlights Li Auto Inc. reported 111,074 vehicle deliveries in Q2 2025, a 2.3% year-over-year increase, and continued to expand its retail and servicing infrastructure across China - Total deliveries for the second quarter of 2025 were 111,074 vehicles, representing a 2.3% year-over-year increase2 - As of June 30, 2025, the Company had 530 retail stores in 151 cities, 511 servicing centers and Li Auto-authorized body and paint shops operating in 222 cities, and 2,851 super charging stations in operation equipped with 15,655 charging stalls3 Financial Highlights The company achieved RMB30.2 billion in total revenues with a gross margin of 20.1% in Q2 2025, while operating income significantly increased by 76.7% YoY and 204.4% QoQ, reaching RMB827.0 million Q2 2025 Key Financial Highlights (RMB millions) | Metric | 2025 Q2 (RMB) | YoY Change | QoQ Change | | :---------------------- | :------------ | :--------- | :--------- | | Vehicle Sales | 28,900 | -4.7% | 17.0% | | Vehicle Margin | 19.4% | +0.7pts | -0.4pts | | Total Revenues | 30,200 | -4.5% | 16.7% | | Gross Profit | 6,100 | -1.8% | 14.1% | | Gross Margin | 20.1% | +0.6pts | -0.4pts | | Operating Expenses | (5,200) | -8.2% | 3.8% | | Income from Operations | 827.0 | 76.7% | 204.4% | | Operating Margin | 2.7% | +1.2pts | +1.7pts | | Net Income | 1,100 | -0.4% | 69.6% | | Non-GAAP Net Income | 1,500 | -2.3% | 44.7% | | Diluted EPS per ADS | 1.03 | -1.9% | 66.1% | | Non-GAAP Diluted EPS per ADS | 1.37 | -3.5% | 42.7% | | Net Cash Used in Operating Activities | (3,000) | 607.1% | 78.5% | | Free Cash Flow (Non-GAAP) | (3,800) | 107.4% | 51.8% | Key Financial Results Table This section presents a comprehensive table of key financial results for the periods ended June 30, 2024, March 31, 2025, and June 30, 2025 Key Financial Results (RMB millions, except percentages and per ADS data) | Metric | June 30, 2024 (RMB) | March 31, 2025 (RMB) | June 30, 2025 (RMB) | YoY Change | QoQ Change | | :---------------------------------------------- | :------------------ | :------------------- | :------------------ | :--------- | :--------- | | Vehicle sales | 30,319.7 | 24,678.6 | 28,885.1 | (4.7)% | 17.0% | | Vehicle margin | 18.7% | 19.8% | 19.4% | 0.7pts | (0.4)pts | | Total revenues | 31,678.4 | 25,926.8 | 30,245.6 | (4.5)% | 16.7% | | Gross profit | 6,176.9 | 5,318.5 | 6,067.0 | (1.8)% | 14.1% | | Gross margin | 19.5% | 20.5% | 20.1% | 0.6pts | (0.4)pts | | Operating expenses | (5,708.9) | (5,046.8) | (5,240.0) | (8.2)% | 3.8% | | Income from operations | 468.0 | 271.7 | 827.0 | 76.7% | 204.4% | | Operating margin | 1.5% | 1.0% | 2.7% | 1.2pts | 1.7pts | | Net income | 1,100.9 | 646.6 | 1,096.9 | (0.4)% | 69.6% | | Non-GAAP net income | 1,503.1 | 1,014.3 | 1,468.2 | (2.3)% | 44.7% | | Diluted net earnings per ADS attributable to ordinary shareholders | 1.05 | 0.62 | 1.03 | (1.9)% | 66.1% | | Non-GAAP diluted net earnings per ADS attributable to ordinary shareholders | 1.42 | 0.96 | 1.37 | (3.5)% | 42.7% | | Net cash used in operating activities | (429.4) | (1,701.0) | (3,036.2) | 607.1% | 78.5% | | Free cash flow (non-GAAP) | (1,852.7) | (2,530.6) | (3,841.8) | 107.4% | 51.8% | Recent Developments This section outlines recent business developments, including vehicle deliveries, ESG performance, and new product launches Delivery Update (July 2025) Li Auto delivered 30,731 vehicles in July 2025 and continued to expand its retail and charging infrastructure, reaching over 3,000 super charging stations - In July 2025, the Company delivered 30,731 vehicles10 - As of July 31, 2025, the Company had 535 retail stores in 153 cities, 527 servicing centers in 222 cities, and 3,028 super charging stations in operation equipped with 16,671 charging stalls10 ESG Performance Li Auto maintained its top-tier ESG rating from MSCI for the third consecutive year, reflecting strong management of ESG factors - In July 2025, the Company received the highest MSCI ESG rating of 'AAA' for the third consecutive year11 New Product Launch: Li i8 Li Auto launched the Li i8, a new six-seat battery electric family SUV, featuring advanced BEV platform technology, a 720 km CLTC range, and proprietary intelligent driving systems, with deliveries commencing in August 2025 - In July 2025, the Company launched Li i8, a six-seat battery electric family SUV12 - Li i8 is built on a new high-voltage BEV platform, comes standard with a dual-motor all-wheel drive system, a 97.8 kWh ternary lithium 5C super charging battery pack, and delivers a 720 km CLTC range12 - It supports a 500 km driving range with only ten minutes of charging and features LiDAR, Li AD Max advanced assisted driving system (powered by VLA Driver large model), and Li Xiang Tong Xue Agent (supported by MindGPT), priced at RMB339,800, with deliveries starting on August 20, 202512 Management Commentary This section provides strategic insights from the CEO and a financial review from the CFO regarding the company's performance and future direction CEO's Strategic Review CEO Xiang Li highlighted Li Auto's market leadership in China's RMB200,000+ NEV segment, the success of Li MEGA, and significant advancements in BEV and intelligence with the launch of Li i8 and proprietary AI models - Solidified position as China's best-selling domestic automotive brand in the RMB200,000 and above NEV market13 - Li MEGA quickly became the top-seller among MPVs priced above RMB500,000 since May13 - Launched Li i8, a six-seat battery electric family SUV, alongside in-house developed VLA Driver large model and Li Xiang Tong Xue Agent, transforming R&D breakthroughs into enhanced product experiences, with plans to launch Li i6 in September to expand model lineup13 CFO's Financial Review CFO Tie Li emphasized the company's focus on cost optimization and operational efficiency, leading to solid profitability in Q2 2025, with total revenues of RMB30.2 billion, a healthy gross margin of 20.1%, and a 69.6% QoQ increase in net income - Remained focused on cost optimization and operational efficiency enhancement, achieving solid profitability13 - Quarterly total revenues reached RMB30.2 billion, with gross margin remaining healthy at 20.1%, and net income increased to RMB1.1 billion, up 69.6% quarter-over-quarter13 Detailed Financial Results for Q2 2025 This section provides an in-depth analysis of Li Auto Inc.'s financial performance for the second quarter of 2025, covering revenues, costs, expenses, and cash flows Revenues Analysis Total revenues decreased 4.5% YoY to RMB30.2 billion but increased 16.7% QoQ, with vehicle sales seeing a 4.7% YoY decrease due to lower average selling price from product mix and incentives, offset by increased deliveries Q2 2025 Revenue Breakdown (RMB billions) | Revenue Type | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :-------------------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Total Revenues | 30.2 | 31.7 | 25.9 | -4.5% | 16.7% | | Vehicle Sales | 28.9 | 30.3 | 24.7 | -4.7% | 17.0% | | Other Sales & Services | 1.4 | 1.4 | 1.2 | 0.1% | 9.0% | - The decrease in revenue from vehicle sales over Q2 2024 was primarily attributable to lower average selling price due to different product mix, interest subsidies, and increased sales incentives, partially offset by an increase in vehicle deliveries, while the increase QoQ was primarily attributable to the increase in vehicle deliveries17 - Revenue from other sales and services remained relatively stable YoY and increased QoQ mainly due to increased provision of services and sales of accessories, in line with higher accumulated vehicle sales17 Cost of Sales and Gross Margin Analysis Cost of sales decreased 5.2% YoY but increased 17.3% QoQ, while gross profit decreased 1.8% YoY but increased 14.1% QoQ, with vehicle margin improving to 19.4% (up 0.7pts YoY) mainly due to cost reduction Q2 2025 Cost of Sales and Gross Margin (RMB billions) | Metric | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :-------------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Cost of Sales | 24.2 | 25.5 | 20.6 | -5.2% | 17.3% | | Gross Profit | 6.1 | 6.2 | 5.3 | -1.8% | 14.1% | | Vehicle Margin | 19.4% | 18.7% | 19.8% | +0.7pts | -0.4pts | | Gross Margin | 20.1% | 19.5% | 20.5% | +0.6pts | -0.4pts | - The decrease in cost of sales over Q2 2024 was primarily attributable to lower average cost of sales due to cost reduction and different product mix, partially offset by the increase in vehicle deliveries, while the increase QoQ was primarily attributable to the increase in vehicle deliveries17 - The increase in vehicle margin over Q2 2024 was mainly attributable to lower average cost of sales due to cost reduction, partially offset by lower average selling price, with gross margin increasing YoY mainly due to the improvement in vehicle margin17 Operating Expenses Analysis Total operating expenses decreased 8.2% YoY to RMB5.2 billion but increased 3.8% QoQ, with R&D expenses decreasing 7.2% YoY due to lower employee compensation but increasing 11.8% QoQ due to new vehicle programs Q2 2025 Operating Expenses (RMB billions) | Expense Type | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :----------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Total Operating Expenses | 5.2 | 5.7 | 5.0 | -8.2% | 3.8% | | R&D Expenses | 2.8 | 3.0 | 2.5 | -7.2% | 11.8% | | SG&A Expenses | 2.7 | 2.8 | 2.5 | -3.5% | 7.4% | - The decrease in research and development expenses over Q2 2024 was mainly attributable to decreased employee compensation, while the increase QoQ was mainly attributable to the impact of the pace of new vehicle programs and increased expenses to support expanding product portfolios and technologies17 - The decrease in selling, general and administrative expenses over Q2 2024 was primarily due to decreased employee compensation, partially offset by increased marketing and promotional activities, with the increase QoQ primarily due to increased marketing and promotional activities17 Income from Operations Analysis Income from operations surged 76.7% YoY and 204.4% QoQ to RMB827.0 million, resulting in an operating margin of 2.7% (up 1.2pts YoY and 1.7pts QoQ), with non-GAAP income from operations also seeing substantial increases Q2 2025 Income from Operations (RMB millions) | Metric | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :---------------------- | :------------ | :------------ | :--------- | :--------- | :--------- | | Income from Operations | 827.0 | 468.0 | 271.7 | 76.7% | 204.4% | | Operating Margin | 2.7% | 1.5% | 1.0% | +1.2pts | +1.7pts | | Non-GAAP Income from Operations | 1,200 | 870.1 | 639.3 | 37.7% | 87.4% | Net Income and EPS Analysis Net income was RMB1.1 billion, a slight decrease of 0.4% YoY but a significant increase of 69.6% QoQ, while diluted net earnings per ADS were RMB1.03, decreasing 1.9% YoY but increasing 66.1% QoQ Q2 2025 Net Income and EPS (RMB millions, per ADS) | Metric | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :---------------------------------------------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Net Income | 1,096.9 | 1,100.9 | 646.6 | -0.4% | 69.6% | | Non-GAAP Net Income | 1,468.2 | 1,503.1 | 1,014.3 | -2.3% | 44.7% | | Diluted Net Earnings per ADS | 1.03 | 1.05 | 0.62 | -1.9% | 66.1% | | Non-GAAP Diluted Net Earnings per ADS | 1.37 | 1.42 | 0.96 | -3.5% | 42.7% | Cash Flow and Position Analysis As of June 30, 2025, Li Auto's cash position was RMB106.9 billion, with net cash used in operating activities increasing significantly to RMB3.0 billion, and free cash flow being negative RMB3.8 billion, primarily due to increased inventory purchases - Cash position was RMB106.9 billion (US$14.9 billion) as of June 30, 202522 Q2 2025 Cash Flow (RMB millions) | Metric | 2025 Q2 (RMB) | 2024 Q2 (RMB) | 2025 Q1 (RMB) | YoY Change | QoQ Change | | :-------------------------------------- | :------------ | :------------ | :------------ | :--------- | :--------- | | Net Cash Used in Operating Activities | (3,036.2) | (429.4) | (1,701.0) | 607.1% | 78.5% | | Free Cash Flow (Non-GAAP) | (3,841.8) | (1,852.7) | (2,530.6) | 107.4% | 51.8% | - The change in net cash used in operating activities over Q2 2024 and Q1 2025 was mainly due to increased payment related to inventory purchase22 Business Outlook for Q3 2025 This section provides the company's business outlook and guidance for vehicle deliveries and total revenues for the third quarter of 2025 Q3 2025 Business Outlook | Metric | Q3 2025 Guidance | YoY Change | | :--------------- | :--------------- | :--------- | | Vehicle Deliveries | 90,000 - 95,000 | -41.1% to -37.8% | | Total Revenues | RMB24.8 - RMB26.2 billion (US$3.5 - US$3.7 billion) | -42.1% to -38.8% | Conference Call Details This section provides details for the upcoming conference call to discuss financial results, including registration and replay information - Management will hold a conference call on Thursday, August 28, 2025, at 8:00 a.m. U.S. Eastern Time to discuss financial results24 - Participants need to complete online registration to receive access information, with a replay accessible until September 4, 2025, and a live/archived webcast available on the Company's investor relations website2526 Non-GAAP Financial Measures Explanation This section explains the company's use of non-GAAP financial measures, their purpose, and limitations, along with reconciliation practices - The Company uses non-GAAP financial measures, such as non-GAAP net income and free cash flow, by excluding share-based compensation expenses and release of valuation allowance on deferred tax assets28 - These measures help identify underlying business trends and enhance understanding of performance, but are not presented in accordance with U.S. GAAP and should not be considered in isolation2829 - Limitations are mitigated by reconciling non-GAAP measures to the most comparable U.S. GAAP performance measures30 Exchange Rate Information This section specifies the exchange rate used for all Renminbi to U.S. dollar translations within the report - All translations from Renminbi to U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the exchange rate on June 30, 202531 Company Overview This section provides an overview of Li Auto Inc., its mission, market position, and product strategy in the new energy vehicle sector - Li Auto Inc. is a leader in China's new energy vehicle market, designing, developing, manufacturing, and selling premium smart electric vehicles32 - Its mission is: Create a Mobile Home, Create Happiness, pioneering in commercializing extended-range electric vehicles (EREVs) and building platforms for battery electric vehicles (BEVs)32 - In-house development focuses on proprietary range extension systems, innovative electric vehicle technologies, and smart vehicle solutions, with a current model lineup including a flagship MPV, four Li L series EREVs, and one Li i series BEV SUV32 Safe Harbor Statement This section contains a safe harbor statement regarding forward-looking statements, outlining inherent risks and the company's disclosure obligations - This press release contains forward-looking statements subject to risks and uncertainties, including those related to business development, operating history, product quality, competition, and government policies34 - Li Auto does not undertake any obligation to update these statements, except as required by applicable law34 Investor and Media Contact Information This section provides contact details for investor and media inquiries regarding Li Auto Inc - For investor and media inquiries, contact Li Auto Inc. Investor Relations at ir@lixiang.com or Christensen Advisory at Li@christensencomms.com35 Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements, including statements of comprehensive income, balance sheets, and cash flows Statements of Comprehensive Income This section presents the unaudited condensed consolidated statements of comprehensive income for the three months ended June 30, 2024, March 31, 2025, and June 30, 2025, detailing revenues, cost of sales, gross profit, operating expenses, and net income Unaudited Condensed Consolidated Statements of Comprehensive Income (Thousands, except per ADS/ordinary share data) | Metric | June 30, 2024 (RMB) | March 31, 2025 (RMB) | June 30, 2025 (RMB) | June 30, 2025 (US$) | | :---------------------------------------------- | :------------------ | :------------------- | :------------------ | :------------------ | | Revenues: | | | | | | Vehicle sales | 30,319,728 | 24,678,585 | 28,885,133 | 4,032,209 | | Other sales and services | 1,358,668 | 1,248,229 | 1,360,480 | 189,916 | | Total revenues | 31,678,396 | 25,926,814 | 30,245,613 | 4,222,125 | | Cost of sales: | | | | | | Vehicle sales | (24,635,504) | (19,801,927) | (23,273,292) | (3,248,826) | | Other sales and services | (865,950) | (806,428) | (905,352) | (126,382) | | Total cost of sales | (25,501,454) | (20,608,355) | (24,178,644) | (3,375,208) | | Gross profit | 6,176,942 | 5,318,459 | 6,066,969 | 846,917 | | Operating expenses: | | | | | | Research and development | (3,027,581) | (2,513,854) | (2,810,170) | (392,285) | | Selling, general and administrative | (2,815,105) | (2,531,009) | (2,717,761) | (379,385) | | Other operating income/(expense), net | 133,773 | (1,942) | 287,980 | 40,200 | | Total operating expenses | (5,708,913) | (5,046,805) | (5,239,951) | (731,470) | | Income from operations | 468,029 | 271,654 | 827,018 | 115,447 | | Other (expense)/income: | | | | | | Interest expense | (43,231) | (48,220) | (49,776) | (6,948) | | Interest income and investment income, net | 370,034 | 516,261 | 496,454 | 69,302 | | Others, net | 383,237 | 34,730 | 15,288 | 2,135 | | Income before income tax | 1,178,069 | 774,425 | 1,288,984 | 179,936 | | Income tax expense | (77,129) | (127,780) | (192,048) | (26,809) | | Net income | 1,100,940 | 646,645 | 1,096,936 | 153,127 | | Less: Net (loss)/income attributable to noncontrolling interests | (1,653) | (3,679) | 4,365 | 609 | | Net income attributable to ordinary shareholders of Li Auto Inc. | 1,102,593 | 650,324 | 1,092,571 | 152,518 | | Net income | 1,100,940 | 646,645 | 1,096,936 | 153,127 | | Other comprehensive income/(loss), net of tax | | | | | | Foreign currency translation adjustment, net of nil tax | 12,444 | (69,994) | (173,612) | (24,235) | | Total other comprehensive income/(loss), net of tax | 12,444 | (69,994) | (173,612) | (24,235) | | Total comprehensive income | 1,113,384 | 576,651 | 923,324 | 128,892 | | Less: Net (loss)/income attributable to noncontrolling interests | (1,653) | (3,679) | 4,365 | 609 | | Comprehensive income attributable to ordinary shareholders of Li Auto Inc. | 1,115,037 | 580,330 | 918,959 | 128,283 | | Weighted average number of ADSs | | | | | | Basic | 994,833,579 | 1,004,099,494 | 1,005,986,033 | 1,005,986,033 | | Diluted | 1,062,428,185 | 1,069,104,610 | 1,071,261,046 | 1,071,261,046 | | Net earnings per ADS attributable to ordinary shareholders | | | | | | Basic | 1.11 | 0.65 | 1.09 | 0.15 | | Diluted | 1.05 | 0.62 | 1.03 | 0.14 | | Weighted average number of ordinary shares | | | | | | Basic | 1,989,667,158 | 2,008,198,987 | 2,011,972,066 | 2,011,972,066 | | Diluted | 2,124,856,370 | 2,138,209,219 | 2,142,522,091 | 2,142,522,091 | | Net earnings per share attributable to ordinary shareholders | | | | | | Basic | 0.55 | 0.32 | 0.54 | 0.08 | | Diluted | 0.52 | 0.31 | 0.51 | 0.07 | Condensed Consolidated Balance Sheets This section provides the unaudited condensed consolidated balance sheets as of December 31, 2024, and June 30, 2025, detailing assets, liabilities, and equity Unaudited Condensed Consolidated Balance Sheets (Thousands) | Metric | December 31, 2024 (RMB) | June 30, 2025 (RMB) | June 30, 2025 (US$) | | :---------------------------------------------- | :---------------------- | :------------------ | :------------------ | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | 65,901,123 | 49,790,369 | 6,950,468 | | Restricted cash | 6,849 | 6,597 | 921 | | Time deposits and short-term investments | 46,904,548 | 57,128,448 | 7,974,824 | | Trade receivable | 135,112 | 85,698 | 11,963 | | Inventories | 8,185,604 | 11,732,340 | 1,637,772 | | Prepayments and other current assets | 5,176,546 | 4,793,124 | 669,094 | | Total current assets | 126,309,782 | 123,536,576 | 17,245,042 | | Non-current assets: | | | | | Long-term investments | 922,897 | 827,727 | 115,546 | | Property, plant and equipment, net | 21,140,933 | 22,031,465 | 3,075,474 | | Operating lease right-of-use assets, net | 8,323,963 | 9,100,442 | 1,270,373 | | Intangible assets, net | 914,951 | 933,707 | 130,340 | | Goodwill | 5,484 | 5,484 | 766 | | Deferred tax assets | 2,542,180 | 2,855,550 | 398,619 | | Other non-current assets | 2,188,888 | 1,995,054 | 278,499 | | Total non-current assets | 36,039,296 | 37,749,429 | 5,269,617 | | Total assets | 162,349,078 | 161,286,005 | 22,514,659 | | LIABILITIES AND EQUITY | | | | | Current liabilities: | | | | | Short-term borrowings | 281,102 | 6,391,223 | 892,180 | | Trade and notes payable | 53,596,194 | 49,967,321 | 6,975,169 | | Amounts due to related parties | 11,492 | 18,176 | 2,537 | | Deferred revenue, current | 1,396,489 | 1,405,462 | 196,195 | | Operating lease liabilities, current | 1,438,092 | 1,632,735 | 227,921 | | Finance lease liabilities, current | 95,205 | 100,971 | 14,095 | | Accruals and other current liabilities | 12,397,322 | 11,696,368 | 1,632,748 | | Total current liabilities | 69,215,896 | 71,212,256 | 9,940,845 | | Non-current liabilities: | | | | | Long-term borrowings | 8,151,598 | 1,834,260 | 256,053 | | Deferred revenue, non-current | 720,531 | 663,117 | 92,568 | | Operating lease liabilities, non-current | 5,735,738 | 6,354,236 | 887,017 | | Finance lease liabilities, non-current | 642,984 | 602,495 | 84,105 | | Deferred tax liabilities | 864,999 | 762,974 | 106,507 | | Other non-current liabilities | 5,696,950 | 6,228,174 | 869,420 | | Total non-current liabilities | 21,812,800 | 16,445,256 | 2,295,670 | | Total liabilities | 91,028,696 | 87,657,512 | 12,236,515 | | Total Li Auto Inc. shareholders' equity | 70,874,884 | 73,122,309 | 10,207,483 | | Noncontrolling interests | 445,498 | 506,184 | 70,661 | | Total shareholders' equity | 71,320,382 | 73,628,493 | 10,278,144 | | Total liabilities and shareholders' equity | 162,349,078 | 161,286,005 | 22,514,659 | Condensed Consolidated Statements of Cash Flows This section presents the unaudited condensed consolidated statements of cash flows for the three months ended June 30, 2024, March 31, 2025, and June 30, 2025, outlining cash flows from operating, investing, and financing activities Unaudited Condensed Consolidated Statements of Cash Flows (Thousands) | Metric | June 30, 2024 (RMB) | March 31, 2025 (RMB) | June 30, 2025 (RMB) | June 30, 2025 (US$) | | :---------------------------------------------- | :------------------ | :------------------- | :------------------ | :------------------ | | Net cash used in operating activities | (429,397) | (1,700,968) | (3,036,219) | (423,840) | | Net cash used in investing activities | (3,839,308) | (10,959,789) | (226,724) | (31,649) | | Net cash (used in)/provided by financing activities | (104,743) | 61,406 | (70,037) | (9,777) | | Effect of exchange rate changes on cash, cash equivalents and restricted cash | 32,257 | (70,282) | (108,393) | (15,131) | | Net change in cash, cash equivalents and restricted cash | (4,341,191) | (12,669,633) | (3,441,373) | (480,397) | | Cash, cash equivalents and restricted cash at beginning of period | 85,129,987 | 65,907,972 | 53,238,339 | 7,431,786 | | Cash, cash equivalents and restricted cash at end of period | 80,788,796 | 53,238,339 | 49,796,966 | 6,951,389 | | Net cash used in operating activities | (429,397) | (1,700,968) | (3,036,219) | (423,840) | | Capital expenditures | (1,423,332) | (829,597) | (805,544) | (112,450) | | Free cash flow (non-GAAP) | (1,852,729) | (2,530,565) | (3,841,763) | (536,290) | Reconciliation of GAAP and Non-GAAP Results This section provides a detailed reconciliation of U.S. GAAP financial measures to non-GAAP financial measures for various income statement items, adjusting for share-based compensation expenses Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results (Thousands, except per ADS/ordinary share data) | Metric | June 30, 2024 (RMB) | March 31, 2025 (RMB) | June 30, 2025 (RMB) | June 30, 2025 (US$) | | :---------------------------------------------- | :------------------ | :------------------- | :------------------ | :------------------ | | Cost of sales | (25,501,454) | (20,608,355) | (24,178,644) | (3,375,208) | | Share-based compensation expenses | 7,652 | 7,196 | 8,135 | 1,136 | | Non-GAAP cost of sales | (25,493,802) | (20,601,159) | (24,170,509) | (3,374,072) | | Research and development expenses | (3,027,581) | (2,513,854) | (2,810,170) | (392,285) | | Share-based compensation expenses | 224,332 | 238,932 | 236,668 | 33,038 | | Non-GAAP research and development expenses | (2,803,249) | (2,274,922) | (2,573,502) | (359,247) | | Selling, general and administrative expenses | (2,815,105) | (2,531,009) | (2,717,761) | (379,385) | | Share-based compensation expenses | 170,129 | 121,511 | 126,413 | 17,647 | | Non-GAAP selling, general and administrative expenses | (2,644,976) | (2,409,498) | (2,591,348) | (361,738) | | Income from operations | 468,029 | 271,654 | 827,018 | 115,447 | | Share-based compensation expenses | 402,113 | 367,639 | 371,216 | 51,821 | | Non-GAAP income from operations | 870,142 | 639,293 | 1,198,234 | 167,268 | | Net income | 1,100,940 | 646,645 | 1,096,936 | 153,127 | | Share-based compensation expenses | 402,113 | 367,639 | 371,216 | 51,821 | | Non-GAAP net income | 1,503,053 | 1,014,284 | 1,468,152 | 204,948 | | Net income attributable to ordinary shareholders of Li Auto Inc. | 1,102,593 | 650,324 | 1,092,571 | 152,518 | | Share-based compensation expenses | 402,113 | 367,639 | 371,216 | 51,821 | | Non-GAAP net income attributable to ordinary shareholders of Li Auto Inc. | 1,504,706 | 1,017,963 | 1,463,787 | 204,339 | | Weighted average number of ADSs | | | | | | Basic | 994,833,579 | 1,004,099,494 | 1,005,986,033 | 1,005,986,033 | | Diluted | 1,062,428,185 | 1,069,104,610 | 1,071,261,046 | 1,071,261,046 | | Non-GAAP net earnings per ADS attributable to ordinary shareholders | | | | | | Basic | 1.51 | 1.01 | 1.46 | 0.20 | | Diluted | 1.42 | 0.96 | 1.37 | 0.19 | | Weighted average number of ordinary shares | | | | | | Basic | 1,989,667,158 | 2,008,198,987 | 2,011,972,066 | 2,011,972,066 | | Diluted | 2,124,856,370 | 2,138,209,219 | 2,142,522,091 | 2,142,522,091 | | Non-GAAP net earnings per share attributable to ordinary shareholders | | | | | | Basic | 0.76 | 0.51 | 0.73 | 0.10 | | Diluted | 0.71 | 0.48 | 0.69 | 0.10 |