Ge Long Hui·2025-08-30 19:04Core Viewpoint - The company reported its Q2 2025 financial results, showing a decline in revenue but resilience in gross margin, with a focus on upcoming product launches and technological advancements in the electric vehicle sector [1][4]. Revenue Performance - In Q2 2025, total revenue reached 30.25 billion yuan, reflecting a year-on-year decrease of 4.5% but a quarter-on-quarter increase of 16.7% [1]. - Automotive revenue was approximately 28.89 billion yuan, with a year-on-year decline of 4.7% and a quarter-on-quarter increase of 17.0% [1][2]. - The average selling price (ASP) decreased from 266,000 yuan in Q1 2025 to 260,000 yuan in Q2 2025 [2]. Sales Volume - The company delivered 111,000 vehicles in Q2 2025, representing a year-on-year increase of 2.3% and a quarter-on-quarter increase of 19.6% [2]. - The sales distribution for key models in Q2 2025 included L9 (13.0%), L8 (13.3%), L7 (23.8%), L6 (46.8%), and Mega (3.1%) [2]. Profitability - The automotive business gross profit was 5.61 billion yuan, with a year-on-year decrease of 1.3% but a quarter-on-quarter increase of 15.1% [2]. - The gross margin for automotive business stood at 19.4%, showing a year-on-year increase of 0.7 percentage points but a quarter-on-quarter decrease of 0.3 percentage points [2]. - The net profit attributable to shareholders was 1.09 billion yuan, with a year-on-year decrease of 0.8% but a quarter-on-quarter increase of 68.0% [1]. Research and Development - R&D expenses for Q2 2025 were 2.81 billion yuan, reflecting a year-on-year decrease of 7.2% but a quarter-on-quarter increase of 11.8% [3]. - The R&D expense ratio was 9.3%, showing a year-on-year decrease of 0.3 percentage points [3]. Future Outlook - The company anticipates Q3 2025 vehicle deliveries to be between 90,000 and 95,000 units, with a year-on-year decline of 41.1% to 37.8% [4]. - The upcoming launch of the Li Auto i6, a mid-large five-seat pure electric SUV, is expected in September 2025, with a starting price of 250,000 yuan [4]. - The VLA (Vehicle Learning Architecture) system is set to enhance the driving performance of new models, with significant updates planned for the end of 2025 [4]. Investment Recommendations - The company is expected to leverage its user insights and efficient organizational structure to continue innovating in product offerings, particularly in the electric vehicle market [4]. - Revenue projections for 2025-2027 are estimated at 127.21 billion, 178.04 billion, and 200.95 billion yuan, with net profits of 5.01 billion, 11.41 billion, and 14.55 billion yuan respectively [4].