2023-04-21 10:30Financial Performance - Revenues for 2022 reached RMB 45.3 billion, a 67.7% increase year-over-year from RMB 27.0 billion in 2021[5] - Gross profit for 2022 was RMB 8.8 billion, representing a 52.6% increase from RMB 5.8 billion in 2021[5] - Non-GAAP net income for 2022 was RMB 20.8 million, a 97.3% decrease from RMB 779.9 million in 2021[5] - Vehicle sales revenue rose by 68.8% from RMB26.13 billion in 2021 to RMB44.11 billion in 2022, driven by increased vehicle deliveries and higher average selling prices[32] - Gross profit increased by 52.6% from RMB5.76 billion in 2021 to RMB8.79 billion in 2022, with a gross margin decrease from 21.3% to 19.4%[34] - Net loss increased by 532.2% from RMB321.5 million in 2021 to RMB2.03 billion in 2022[41] - Total operating expenses for the year ended December 31, 2022, amounted to RMB 19.396 billion, with the largest components being Sales and Marketing at RMB 9.199 billion, Research and Development at RMB 4.838 billion, and Production at RMB 4.318 billion[52] - As of December 31, 2022, the company had cash and cash equivalents totaling RMB58.45 billion, a 16.5% increase from RMB50.16 billion in 2021[42] Vehicle Deliveries and Sales - Total deliveries in 2022 increased by 47.2% year-over-year to 133,246 vehicles, with cumulative deliveries reaching 257,334 vehicles as of December 31, 2022[10] - The company delivered 15,141 vehicles in January 2023, a 23.4% increase from January 2022, and 20,823 vehicles in March 2023, an 88.7% increase from March 2022[27] - Li L9 dominated monthly full-size SUV sales in China since September 2022, while Li L8 secured the title of sales champion among large SUVs in December 2022[13] Research and Development - R&D spending accounted for 15.0% of total revenues in 2022, with R&D personnel reaching 4,838[20] - Research and development expenses surged by 106.3% from RMB3.29 billion in 2021 to RMB6.78 billion in 2022, reflecting increased staffing and costs for new product development[35] - The company launched two new models in 2022: Li L9 and Li L8, with prices set at RMB 459,800, RMB 359,800, and RMB 399,800 respectively[12] - The Li L7 was launched on February 8, 2023, featuring a range of 1,315 kilometers and priced at RMB319,800 for the base model[28] Corporate Governance - The Company is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value[34] - The Board comprises eight members: three executive Directors, two non-executive Directors, and three independent non-executive Directors[156] - The Company has established a Nominating and Corporate Governance Committee to ensure compliance with the Corporate Governance Code and Listing Rules[179] - The Nominating and Corporate Governance Committee held three meetings during the Reporting Period to review various governance matters, including the training of Directors and compliance with the Corporate Governance Code[182] - The Company has complied with all applicable code provisions of the Corporate Governance Code during the Reporting Period[150] Risks and Challenges - The Company has faced significant risks, including a limited operating history and dependence on a limited number of vehicle models, which may affect future profitability[58] - The Company has not been profitable in the past and may continue to experience negative net cash flows from operations[59] - The Company is subject to evolving PRC laws and regulations regarding data privacy and cybersecurity, which could impact its operations and reputation[59] - The PCAOB's inability to inspect the Company's auditor may affect investor confidence and the value of the Company's ADSs[61] Capital and Financing - The company raised gross proceeds of US$366.5 million and net proceeds of approximately US$360.5 million from the sale of 9,431,282 ADSs under the US ATM Offering[103] - The company intends to use the net proceeds from the US ATM Offering for research and development of next-generation electric vehicle technologies, development of future platforms and car models, and general corporate purposes[104] - As of December 31, 2022, the company had 9.6 billion in outstanding loans, overdrafts, and borrowings from banks and other financial institutions, an increase from 6.0 billion in 2021[113] Management and Leadership - Mr. MA Donghui was appointed as the President of the Company effective January 1, 2023, succeeding Mr. SHEN Yanan who resigned on the same date[147] - Mr. LI Tie has served as the Chief Financial Officer since July 2016, bringing extensive experience from Autohome and PricewaterhouseCoopers[130] - Mr. XIE Yan was appointed as the Chief Technology Officer effective December 12, 2022, with prior experience at Huawei and Alibaba[142] - The Company has a strong executive team with over 20 years of experience in internet technology and automotive industries, led by CEO Mr. LI Xiang[128] Sustainability and Social Responsibility - The company received an "AA" rating from MSCI ESG Research for the second consecutive year, highlighting its commitment to sustainable development[23] - The Company is committed to environmental, social, and governance (ESG) initiatives, promoting sustainable growth and employee development[62] - Charitable donations made by the group during the year ended December 31, 2022, amounted to RMB5.7 million[106]