Li Auto (LI) Q2 2025 Earnings Call August 28, 2025 08:00 AM ET Company ParticipantsJanet Zhang - Director - IRTie Li - Executive Director & CFOTina Hou - Vice PresidentYan Xie - Chief Technology OfficerPaul Gong - Executive DirectorMing Hsun Lee - MD - Head of Greater China Auto ResearchConference Call ParticipantsTim Hsiao - AnalystYingbo Xu - Research AnalystJing Chang - AnalystOperatorHello, ladies and gentlemen. Thank you for standing by for Lee Auto's Second Quarter twenty twenty five Earnings Conferen ...

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]