2024-08-28 16:05Financial Data and Key Metrics Changes - In Q2 2024, total revenues reached RMB31.7 billion, a year-over-year increase of 10.6% and a quarter-over-quarter increase of 23.6% [10][16] - Vehicle sales contributed RMB30.3 billion, up 8.4% year-over-year and 25% quarter-over-quarter [16] - Gross profit was RMB6.2 billion, down 0.9% year-over-year but up 16.9% quarter-over-quarter, with a gross margin of 19.5% [10][18] - Net income decreased by 52.3% year-over-year to RMB1.1 billion, but increased by 86.2% quarter-over-quarter [20] Business Line Data and Key Metrics Changes - Li L7 and Li L8 were the top two selling models in the RMB300,000 and over large SUV NEV market, while Li L9 remained the top-selling full-size SUV [9] - Li L6's monthly deliveries exceeded 20,000 units since June, ranking second in the RMB200,000 and higher passenger vehicle market [9] Market Data and Key Metrics Changes - The NEV penetration rate in China approached 50% in July, indicating a shift towards smart electric vehicles [8] - Li Auto's market share in the RMB200,000 and higher NEV market increased from 13.6% in Q1 to 14.4% in Q2 [9] Company Strategy and Development Direction - The company aims to strengthen its brand in the new energy and premium car market, with plans to launch battery-electric SUVs in the first half of 2025 [15] - Li Auto is focusing on enhancing its sales and servicing network, with an increase in the proportion of sales centers to 31% and a total of 487 retail stores across 146 cities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving operating performance in the second half of the year as Li L6 ramps up production and cost-reduction efforts take effect [10] - The company expects vehicle deliveries in Q3 2024 to be between 145,000 and 155,000 units, representing a year-over-year increase of 38% to 47.5% [22] Other Important Information - The company recorded a significant increase in user engagement with autonomous driving features, with over 99% of users regularly utilizing these features [12] - Li Auto's cash position remained strong at RMB97.3 billion as of June 30, 2024 [21] Q&A Session Summary Question: How does Li Auto evaluate the return and efficiency of its autonomous driving investments? - Management highlighted that user willingness to use and pay for autonomous driving features are key metrics, with increased usage rates since the launch of HD mapless NOA [23] Question: What is the competitive landscape with Huawei? - Management acknowledged Huawei as a major competitor and emphasized a healthy coexistence while learning from Huawei's R&D methodologies [25] Question: What is the margin guidance for this year? - The company expects vehicle margins to improve to over 19% and total gross margins to exceed 20% in Q3 [27] Question: How will sales volume be maintained without new model launches? - Management stated that efficient sales operations and increased publicity for autonomous driving features will drive sales growth [31] Question: What is the plan for the BEV models next year? - Management confirmed that the launch of multiple 800-volt high voltage pure electric vehicles is on track, with sufficient production capacity and supply chain readiness [39]