Ge Long Hui·2025-08-30 19:04Core Viewpoint - Li Auto reported its Q2 2025 performance, showing a slight year-on-year decline in revenue and net profit, but a significant quarter-on-quarter increase in both metrics, indicating a recovery trend in the automotive business. Financial Performance - In Q2 2025, the company achieved revenue of 30.2 billion yuan, down 4.5% year-on-year but up 16.7% quarter-on-quarter; net profit was 1.1 billion yuan, down 0.4% year-on-year but up 69.6% quarter-on-quarter; Non-GAAP net profit was 1.5 billion yuan, down 2.3% year-on-year but up 44.7% quarter-on-quarter; operating profit was 827 million yuan, up 76.7% year-on-year and up 204.4% quarter-on-quarter [1] Automotive Business Insights - The automotive segment generated revenue of 28.9 billion yuan in Q2 2025, down 4.7% year-on-year but up 17% quarter-on-quarter; vehicle deliveries reached 111,000 units, up 2.3% year-on-year and up 19.6% quarter-on-quarter; the average selling price (ASP) was 272,000 yuan, down 7,000 yuan quarter-on-quarter [1] - The year-on-year revenue decline is attributed to changes in sales structure and increased discounts, while the quarter-on-quarter growth is driven by higher delivery volumes [1] Profitability and Cost Management - The gross margin for automotive sales was 19.4%, up 0.7 percentage points year-on-year but down 0.3 percentage points quarter-on-quarter; the year-on-year increase is driven by cost reductions and higher MEGA model sales, while the quarter-on-quarter decline is due to promotional efforts for older models [2] - The profit per vehicle was 10,000 yuan, unchanged year-on-year but up 3,000 yuan quarter-on-quarter; operational efficiency continues to improve with a noticeable reduction in expense ratios [2] Research and Development - R&D expenses in Q2 2025 were 2.8 billion yuan, down 7.2% year-on-year but up 11.8% quarter-on-quarter; the year-on-year decrease is mainly due to reduced personnel costs, while the quarter-on-quarter increase is influenced by new model development [2] Cash Flow and Financial Position - As of the end of Q2 2025, cash reserves were 106.9 billion yuan, a decrease of 3.8 billion yuan from Q1; net cash flow from operating activities was -3 billion yuan, worsening from -1.7 billion yuan in Q1, primarily due to increased payments for inventory [2] Future Outlook - For Q3 2025, the company expects to deliver between 90,000 and 95,000 vehicles, with projected revenue between 24.8 billion and 26.2 billion yuan [3] - The company is focusing on enhancing its smart driving and AI capabilities, with the VLA model expected to significantly improve user interaction and drive sales growth [3] - The pure electric vehicle series is well-positioned for a product cycle, with the i6 model set to launch soon and strong market potential in the high-end electric vehicle segment [3]