Financial Data and Key Metrics Changes - Total revenue for the second quarter was RMB30.2 billion, down 4.5% year over year but up 16.7% quarter over quarter [25] - Vehicle sales contributed RMB28.9 billion, down 4.7% year over year and up 17% quarter over quarter [25] - Gross profit was RMB6.1 billion, down 1.8% year over year and up 14.1% quarter over quarter [26] - Net income was RMB1.1 billion, down 0.4% year over year and up 69.6% quarter over quarter [29] - Operating expenses decreased by 8.2% year over year and increased by 3.8% quarter over quarter [27] Business Line Data and Key Metrics Changes - Li Mega Home achieved approximately 3,000 units sold monthly, becoming the best-selling NPV priced above RMB500,000 since May 2025 [7] - The refreshed Li L Series experienced sales fluctuations due to adjustments in sales and service systems [8] - Li i8 received a test drive satisfaction rate of over 97% and is expected to exceed 8,000 cumulative deliveries by September [11] Market Data and Key Metrics Changes - Li Auto captured a 13.4% market share in the RMB200,000 and above NEV market in China [6] - The company maintained a top three sales position in the RMB200,000 and above NEV market despite challenges [9] Company Strategy and Development Direction - The company plans to enhance sales and delivery capabilities and build an end-to-end marketing system [9] - Li Auto aims to leverage technological innovation to lead industry transformation and strengthen its brand [22] - The company is focusing on expanding its product lineup with the upcoming launch of Li i6 [11] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming challenges and emphasized the importance of creating value for users [9] - The company expects to deliver between 90,000 to 95,000 vehicles in 2025, with quarterly revenues between RMB24.8 billion and RMB26.2 billion [30] - Management highlighted the importance of AI investments, expecting to exceed RMB6 billion this year [15] Other Important Information - Li Auto operates over 3,100 charging stations with more than 17,000 charging stalls, aiming to reach 4,000 stations by the end of the year [13] - The company is committed to ongoing investments in R&D to solidify its leading position in intelligence and technology [14] Q&A Session Summary Question: Sales volume and strategy for L Series - Management plans to solidify market position through intelligence and enhance product competitiveness with major upgrades in assisted driving [34][35] Question: Update on self-developed chips - The in-house design chip is undergoing vehicle testing and is expected to be deployed on flagship models next year [44] Question: Progress on sales system adjustment - A major reorganization of the sales team has been completed, focusing on enhancing frontline expert support and improving sales conversion [51][55] Question: Future strategy for product and SKU - The company will reduce the number of SKUs and focus on maximizing competitiveness and iterating faster on products and technology [60] Question: Gross margin outlook for Q3 - The company expects to maintain gross margin at about 19% for the third quarter [62] Question: Product positioning and marketing plan for I6 - The I6 is positioned as a competitive product in the large five-seater SUV market, with a user-centric marketing approach [65] Question: Overseas strategy - The company is expanding its global strategy, focusing on markets in the Middle East, Central Asia, and Europe [68][70] Question: Operating cash flow situation - Negative operating cash flow in Q2 was due to payment terms adjustments, with expectations for improvement in Q4 [73] Question: Autonomous driving technology development - The company is confident in maintaining progress in VLA development and adapting to regulatory changes [79][80]

Financial Data and Key Metrics Changes - In Q1 2025, total revenues were RMB 25.9 billion, up 1.1% year over year but down 41.4% quarter over quarter [17] - Vehicle sales contributed RMB 24.7 billion, an increase of 1.8% year over year but a decrease of 22.1% quarter over quarter [18] - Gross profit was RMB 5.3 billion, up 0.6% year over year but down 40.7% quarter over quarter [18] - Vehicle margin improved to 90.8% from 90.3% year over year, while gross margin was 20.5%, slightly down from 20.6% year over year [19] - Net income was RMB 89.1 million, up 9.4% year over year but down 81.7% quarter over quarter [21] Business Line Data and Key Metrics Changes - The company delivered over 92,000 vehicles in Q1 2025, a 15.5% increase year over year [8] - The new Li Mega Home model accounted for over 90% of Li Mega orders since its launch, indicating strong market acceptance [10] - The company plans to increase production capacity to achieve 2,500 to 3,000 monthly deliveries by July [11] Market Data and Key Metrics Changes - Li Auto held a 14.1% market share in the RMB 200,000 and above NEV market in April 2025, reinforcing its leadership position [9] - The overall NEV market over RMB 200,000 is expected to reach approximately 3.8 million units in 2025, with 2.1 million being BEVs [36][46] Company Strategy and Development Direction - The company aims to become a top-tier player in the premium BEV market, with a robust pipeline for new models [11] - Li Auto is expanding its sales and servicing network, targeting growth in Tier four and Tier five cities through the STAR program [16][48] - The company is committed to enhancing its competitive edge in the charging network, planning to deploy over 2,500 supercharging stations by June [12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving monthly deliveries of the new L series returning to 50,000 units soon [27] - The company anticipates Q2 2025 deliveries to be between 123,000 to 128,000 units, reflecting a year-over-year increase [11][23] - Management emphasized a user-centric approach driven by innovation to enhance product strength and user satisfaction [16] Other Important Information - Li Auto has built the largest urban highway supercharging network in China, covering over 50,000 kilometers of highways [12] - The company is actively developing its ADAS technology, with plans to launch the VLA driver model in July [14][64] Q&A Session Summary Question: How will Li Auto maintain sales growth against aggressive competition? - Management reported that the new L series has shown healthy growth, with weekly sales exceeding 10,000 units and a market share of 14.7% in the NEV market [27] Question: When will Li Auto consider selling sedans? - Management indicated that after reaching a revenue scale of RMB 300 billion, they will review market conditions and user demand for launching sedan models [29] Question: What is the intelligence level of Li HelloOS and its cost implications? - Management highlighted strong interest in HaloOS from various industry players, which is expected to enhance cost efficiency and product iteration [33] Question: What are the key selling points of the upcoming i8 model? - The i8 will feature innovative styling, high voltage charging technology, and is expected to be a top choice for NEV owners looking to upgrade [42] Question: What is the outlook for the export business? - Management stated that entering overseas markets is part of their long-term strategy, aiming for 30% of overall sales to come from international markets [58]