2026-03-12 13:02Financial Data and Key Metrics Changes - Total revenues in Q4 2025 were RMB 28.8 billion, down 35% year-over-year but up 5.2% quarter-over-quarter [17] - Vehicle sales contributed RMB 27.3 billion, down 36.1% year-over-year and up 5.4% quarter-over-quarter [17] - Gross profit in Q4 was RMB 5.1 billion, down 42.8% year-over-year but up 14.8% quarter-over-quarter [18] - Vehicle margin decreased to 16.8% from 19.7% year-over-year [18] - Operating expenses were RMB 5.6 billion, up 5.8% year-over-year [19] - Net income was RMB 20.2 million, down from RMB 3.5 billion in the same period last year [21] - Cash position at year-end was RMB 101.2 billion [22] Business Line Data and Key Metrics Changes - The Li L8 saw a 33% increase in orders since March compared to February, and a 179% increase compared to January [11] - The Li i6 production ramp-up has stabilized, with expectations of steady monthly sales around 20,000 units [52] Market Data and Key Metrics Changes - Li Auto's NPS for the Li L8 ranked number one among all large SUVs in a recent survey [11] - The company expects deliveries in Q1 2026 to be between 85,000 and 90,000 vehicles [22] Company Strategy and Development Direction - The company is focusing on quality over quantity in store expansion, prioritizing top-tier shopping malls [26] - A new store partner program was launched to empower store managers with decision-making power and profit-sharing [27] - The all-new Li L9 lineup is set to launch in Q2 2026, featuring significant technological upgrades [8][9] - The company aims to transition from a smart EV company to an embodied AI company, enhancing its competitive position [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in profitability across the auto retail industry but emphasized the importance of developing capable store managers [8] - The company is optimistic about the upcoming product launches and expects to see benefits from its direct sales model [38] - Management highlighted the importance of AI investments and the integration of AI into their product offerings [13][39] Other Important Information - R&D spending in 2025 totaled RMB 11.3 billion, with approximately 50% allocated to AI-related initiatives [13] - The company plans to maintain R&D expenses around RMB 12 billion in 2026, with a similar focus on AI [48] Q&A Session Summary Question: Plans for channel optimization and store partner mechanism - Management clarified that the rumor about closing 100 stores is false, focusing instead on optimizing underperforming locations [26] - The new store partner program aims to empower store managers and improve operational accountability [28] Question: Launch timeline and competitiveness of the new Li L9 - The all-new Li L9 is set to launch in Q2 2026, featuring advanced technology and a focus on understanding the physical world for autonomous driving [32] Question: Sales volume target for 2026 and balancing volume with margins - The company aims for a 20% year-on-year growth in 2026, supported by a direct sales model and the launch of new products [38] Question: Strategy for raw material cost inflation - The company is strengthening supply chain collaboration and locking in prices with long-term agreements to manage cost pressures [41][42] Question: Share buyback plans - Currently, there are no specific plans for share buybacks, but the company recognizes it as a potential tool for enhancing shareholder value [47] Question: R&D expense guidance for 2026 - R&D expenses are expected to remain around RMB 12 billion, with a continued focus on AI-related initiatives [48] Question: Details on Li i6 and Li i8 orders and production ramp-up - The Li i6 has stabilized in production, with expectations of steady sales, while the Li L8 has seen a significant increase in orders [52]