• Li Auto Inc. Announces Unaudited Second Quarter 2023 Financial Results

    Source: Nasdaq GlobeNewswire / 08 Aug 2023 04:30:28   America/New_York

    Quarterly total revenues reached RMB28.65 billion (US$3.95 billion)1
    Quarterly deliveries reached 86,533 vehicles

    BEIJING, China, Aug. 08, 2023 (GLOBE NEWSWIRE) --  Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced its unaudited financial results for the quarter ended June 30, 2023.

    Operating Highlights for the Second Quarter of 2023

    • Total vehicle deliveries were 86,533 units in the second quarter of 2023, representing a 201.6% year-over-year increase.

    Deliveries 2023 Q2 2023 Q1 2022 Q4 2022 Q3
      86,533 52,584 46,319 26,524
             
    Deliveries 2022 Q2 2022 Q1 2021 Q4 2021 Q3
      28,687 31,716 35,221 25,116
    • As of June 30, 2023, the Company had 331 retail stores covering 127 cities, as well as 323 servicing centers and Li Auto-authorized body and paint shops operating in 223 cities.

    Financial Highlights for the Second Quarter of 2023

    • Vehicle sales were RMB27.97 billion (US$3.86 billion) in the second quarter of 2023, representing an increase of 229.7% from RMB8.48 billion in the second quarter of 2022 and an increase of 52.6% from RMB18.33 billion in the first quarter of 2023.

    • Vehicle margin2 was 21.0% in the second quarter of 2023, compared with 21.2% in the second quarter of 2022 and 19.8% in the first quarter of 2023.

    • Total revenues were RMB28.65 billion (US$3.95 billion) in the second quarter of 2023, representing an increase of 228.1% from RMB8.73 billion in the second quarter of 2022 and an increase of 52.5% from RMB18.79 billion in the first quarter of 2023.

    • Gross profit was RMB6.24 billion (US$859.9 million) in the second quarter of 2023, representing an increase of 232.0% from RMB1.88 billion in the second quarter of 2022 and an increase of 62.8% from RMB3.83 billion in the first quarter of 2023.

    • Gross margin was 21.8% in the second quarter of 2023, compared with 21.5% in the second quarter of 2022 and 20.4% in the first quarter of 2023.
    • Income from operations was RMB1.63 billion (US$224.2 million) in the second quarter of 2023, compared with RMB978.5 million loss from operations in the second quarter of 2022 and representing an increase of 301.3% from RMB405.2 million income from operations in the first quarter of 2023. Non-GAAP income from operations3 was RMB2.04 billion (US$281.8 million) in the second quarter of 2023, compared with RMB520.8 million non-GAAP loss from operations in the second quarter of 2022 and representing an increase of 130.8% from RMB885.4 million non-GAAP income from operations in the first quarter of 2023.

    • Net income was RMB2.31 billion (US$318.6 million) in the second quarter of 2023, compared with RMB641.0 million net loss in the second quarter of 2022 and representing an increase of 147.4% from RMB933.8 million net income in the first quarter of 2023. Non-GAAP net income3 was RMB2.73 billion (US$376.1 million) in the second quarter of 2023, compared with RMB183.4 million non-GAAP net loss in the second quarter of 2022 and an increase of 92.9% from RMB1.41 billion non-GAAP net income in the first quarter of 2023.

    • Net cash provided by operating activities was RMB11.11 billion (US$1.53 billion) in the second quarter of 2023, compared with RMB1.13 billion net cash provided by operating activities in the second quarter of 2022 and an increase of 42.8% from RMB7.78 billion net cash provided by operating activities in the first quarter of 2023.

    • Free cash flow4 was RMB9.62 billion (US$1.33 billion) in the second quarter of 2023, compared with RMB451.7 million free cash flow in the second quarter of 2022 and representing an increase of 43.6% from RMB6.70 billion free cash flow in the first quarter of 2023.
    Key Financial Results

    (in millions, except for percentages)
         
     For the Three Months Ended % Change5  
     June 30,
    2022
     March 31,
    2023
     June 30,
    2023
     YoY QoQ 
     RMB RMB RMB     
    Vehicle sales8,483.6 18,327.3 27,971.9 229.7% 52.6% 
    Vehicle margin21.2% 19.8% 21.0% (0.2)% 1.2% 
               
    Total revenues8,732.6 18,787.1 28,652.7 228.1% 52.5% 
    Gross profit1,878.3 3,830.1 6,235.3 232.0% 62.8% 
    Gross margin21.5% 20.4% 21.8% 0.3% 1.4% 
               
    (Loss)/income from operations(978.5) 405.2 1,625.9 N/A 301.3% 
    Non-GAAP (loss)/income from operations(520.8) 885.4 2,043.3 N/A 130.8% 
               
    Net (loss)/income(641.0) 933.8 2,310.1 N/A 147.4% 
    Non-GAAP net (loss)/income(183.4) 1,414.1 2,727.5 N/A 92.9% 
               
    Operating cash flow1,129.4 7,780.4 11,112.4 N/A 42.8% 
    Free cash flow (non-GAAP)451.7 6,702.1 9,621.4 N/A 43.6% 


    Recent Developments

    Delivery Update

    • In July 2023, the Company delivered 34,134 vehicles, representing an increase of 227.5% from July 2022. As of July 31, 2023, the Company had 337 retail stores covering 128 cities, in addition to 323 servicing centers and Li Auto-authorized body and paint shops operating in 222 cities.

    Family Tech Day

    • On June 17, 2023, the Company hosted a Family Tech Day where it announced its plan to unveil its super flagship 5C BEV model, Li MEGA, by the end of 2023, and presented the optimization of battery cells and thermal management system as well as its 5C super charging network deployment to enable 5C charging capability. The Company also showcased its technological advancements for smart space and autonomous driving, and introduced its roll-out plans for city NOA and commute NOA. Both city NOA and commute NOA were launched for test drives in June 2023, and are expected to be released to 100 cities nationwide by the end of 2023.

    Li L9 Pro

    • On August 3, 2023, the Company launched the Pro trim of Li L9 to cater to a wider range of family users. Li L9 Pro comes standard with the Li AD Pro autonomous driving system powered by a Horizon Robotics Journey 5 chip and the SS Max+ smart space system. The retail price for Li L9 Pro is RMB429,800.

    At-The-Market Offering

    • On June 28, 2022, the Company announced an at-the-market offering program (the “ATM Offering”) to sell up to US$2,000,000,000 of American depositary shares (“ADSs”), each representing two Class A ordinary shares of the Company.

      As of the date of this press release, the Company has sold 9,480,014 ADSs representing 18,960,028 Class A ordinary shares of the Company under the ATM Offering, raising gross proceeds of US$368.3 million before deducting fees and commissions payable to the distribution agents of up to US$4.8 million and certain other offering expenses.

    CEO and CFO Comments

    Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, “We crossed the 30,000 monthly delivery milestone in June, closing the second quarter with an all-time high vehicle delivery, while all of the three Li L series models maintained sales leadership in their respective categories. These accomplishments solidified our standing as the preferred premium brand for families, firmly positioning us to achieve the revenue target of RMB100 billion in 2023. Facing the competitive market dynamics in China’s NEV industry, in the second quarter we achieved our highest-ever profitability while continuing to strengthen our competitive advantage through ongoing investments in research and development and business expansion, as well as improvements in our organizational processes and operational capabilities.”

    “In June, we launched China’s first city NOA and commute NOA independent of high-definition maps for test drives, showcasing their outstanding abilities to perceive, plan, and control in complex urban traffic environments. Furthermore, our super flagship 5C BEV model, Li MEGA, is scheduled to be unveiled in the fourth quarter of this year. Embodying our latest technological advancements in electrification and intelligentization, we are confident that Li MEGA will become a new sales blockbuster in the RMB500,000 and higher price segment. As a growth-driven organization, we will relentlessly explore and train ourselves to achieve further developments while building products and services that exceed user needs.”

    Mr. Tie Li, chief financial officer of Li Auto, added, “We had a strong showing in the second quarter, setting new records across revenue, net income, and free cash flow. Specifically, we grew our revenue by 228.1% year-over-year to RMB28.65 billion, fueled by the significant increase in vehicle deliveries. We achieved net income of RMB2.31 billion while recording free cash flow of RMB9.62 billion. The robust financial performance empowers the Company to deepen its commitment to research and development and accelerate business expansion as we strive to deliver greater value to our users, shareholders and society as a whole.”

    Financial Results for the Second Quarter of 2023

    Revenues

    • Total revenues were RMB28.65 billion (US$3.95 billion) in the second quarter of 2023, representing an increase of 228.1% from RMB8.73 billion in the second quarter of 2022 and an increase of 52.5% from RMB18.79 billion in the first quarter of 2023.

    • Vehicle sales were RMB27.97 billion (US$3.86 billion) in the second quarter of 2023, representing an increase of 229.7% from RMB8.48 billion in the second quarter of 2022. The increase in vehicle sales over the second quarter of 2022 was mainly attributable to the increase in vehicle deliveries. The increase of 52.6% from RMB18.33 billion in the first quarter of 2023 was mainly attributable to the increase in vehicle deliveries, partially offset by the lower average selling price due to different product mix between two quarters.

    • Other sales and services were RMB680.8 million (US$93.9 million) in the second quarter of 2023, representing an increase of 173.4% from RMB249.0 million in the second quarter of 2022 and an increase of 48.1% from RMB459.7 million in the first quarter of 2023. The increase in revenue from other sales and services over the second quarter of 2022 and the first quarter of 2023 was mainly attributable to the increased sales of accessories and provision of services, which is in line with higher accumulated vehicle sales, and the increased sales of charging stalls, which is in line with higher vehicle deliveries.

    Cost of Sales and Gross Margin

    • Cost of sales was RMB22.42 billion (US$3.09 billion) in the second quarter of 2023, representing an increase of 227.1% from RMB6.85 billion in the second quarter of 2022 and an increase of 49.9% from RMB14.96 billion in the first quarter of 2023. The increase in cost of sales over the second quarter of 2022 and the first quarter of 2023 was mainly attributable to the increase in vehicle deliveries.

    • Gross profit was RMB6.24 billion (US$859.9 million) in the second quarter of 2023, representing an increase of 232.0% from RMB1.88 billion in the second quarter of 2022 and an increase of 62.8% from RMB3.83 billion in the first quarter of 2023.

    • Vehicle margin was 21.0% in the second quarter of 2023, compared with 21.2% in the second quarter of 2022 and 19.8% in the first quarter of 2023. Excluding the impact of Li ONE, the vehicle margin of the Li L series remained stable over the first quarter of 2023.

    • Gross margin was 21.8% in the second quarter of 2023, compared with 21.5% in the second quarter of 2022 and 20.4% in the first quarter of 2023.

    Operating Expenses

    • Operating expenses were RMB4.61 billion (US$635.7 million) in the second quarter of 2023, representing an increase of 61.4% from RMB2.86 billion in the second quarter of 2022 and an increase of 34.6% from RMB3.42 billion in the first quarter of 2023.

    • Research and development expenses were RMB2.43 billion (US$334.5 million) in the second quarter of 2023, representing an increase of 58.4% from RMB1.53 billion in the second quarter of 2022 and an increase of 31.0% from RMB1.85 billion in the first quarter of 2023. The increase in research and development expenses over the second quarter of 2022 and the first quarter of 2023 was primarily driven by increased employee compensation as a result of our growing number of staff as well as increased expenses to support our expanding product portfolios and technologies.

    • Selling, general and administrative expenses were RMB2.31 billion (US$318.5 million) in the second quarter of 2023, representing an increase of 74.3% from RMB1.33 billion in the second quarter of 2022 and an increase of 40.4% from RMB1.65 billion in the first quarter of 2023. The increase in selling, general and administrative expenses over the second quarter of 2022 and the first quarter of 2023 was primarily driven by increased employee compensation as a result of our growing number of staff as well as increased rental expenses associated with the expansion of our sales and servicing network.

    Income/(Loss) from Operations

    • Income from operations was RMB1.63 billion (US$224.2 million) in the second quarter of 2023, compared with RMB978.5 million loss from operations in the second quarter of 2022 and representing an increase of 301.3% from RMB405.2 million income from operations in the first quarter of 2023. Non-GAAP income from operations was RMB2.04 billion (US$281.8 million) in the second quarter of 2023, compared with RMB520.8 million non-GAAP loss from operations in the second quarter of 2022 and representing an increase of 130.8% from RMB885.4 million non-GAAP income from operations in the first quarter of 2023.

    Net Income/(Loss) and Net Earnings/(Loss) Per Share

    • Net income was RMB2.31 billion (US$318.6 million) in the second quarter of 2023, compared with RMB641.0 million net loss in the second quarter of 2022 and representing an increase of 147.4% from RMB933.8 million net income in the first quarter of 2023. Non-GAAP net income was RMB2.73 billion (US$376.1 million) in the second quarter of 2023, compared with RMB183.4 million non-GAAP net loss in the second quarter of 2022 and an increase of 92.9% from RMB1.41 billion non-GAAP net income in the first quarter of 2023.

    • Basic and diluted net earnings per ADS6 attributable to ordinary shareholders were RMB2.34 (US$0.32) and RMB2.18 (US$0.30) in the second quarter of 2023, respectively, compared with RMB0.64 for both basic and diluted net loss per ADS attributable to ordinary shareholders in the second quarter of 2022, and RMB0.95 and RMB0.89 basic and diluted net earnings per ADS attributable to ordinary shareholders in the first quarter of 2023, respectively. Non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders3 were RMB2.76 (US$0.38) and RMB2.58 (US$0.36) in the second quarter of 2023, respectively, compared with RMB0.17 for both non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders in the second quarter of 2022, respectively, and RMB1.44 and RMB1.35 non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders in the first quarter of 2023, respectively.

    Cash Position, Operating Cash Flow and Free Cash Flow

    • Balance of cash and cash equivalents, restricted cash, time deposits and short-term investments was RMB73.77 billion (US$10.17 billion) as of June 30, 2023.

    • Net cash provided by operating activities was RMB11.11 billion (US$1.53 billion) in the second quarter of 2023, compared with RMB1.13 billion net cash provided by operating activities in the second quarter of 2022 and an increase of 42.8% from RMB7.78 billion net cash provided by operating activities in the first quarter of 2023.

    • Free cash flow was RMB9.62 billion (US$1.33 billion) in the second quarter of 2023, compared with RMB451.7 million free cash flow in the second quarter of 2022 and representing an increase of 43.6% from RMB6.70 billion free cash flow in the first quarter of 2023.

    Business Outlook

    For the third quarter of 2023, the Company expects:

    • Deliveries of vehicles to be between 100,000 and 103,000 vehicles, representing an increase of 277.0% to 288.3% from the third quarter of 2022.

    • Total revenues to be between RMB32.33 billion (US$4.46 billion) and RMB33.30 billion (US$4.59 billion), representing an increase of 246.0% to 256.4% from the third quarter of 2022.

    This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.

    Conference Call

    Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Tuesday, August 08, 2023 (8:00 p.m. Beijing/Hong Kong Time on August 08, 2023) to discuss financial results and answer questions from investors and analysts.

    For participants who wish to join the call, please complete online registration using the link provided below prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, passcode, and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference instantly.

    Participant Online Registration: https://s1.c-conf.com/diamondpass/10032372-jb217p.html

    A replay of the conference call will be accessible through August 15, 2023, by dialing the following numbers:

    United States:+1-855-883-1031
    Mainland China:+86-400-1209-216
    Hong Kong, China:+852-800-930-639
    International:+61-7-3107-6325
    Replay PIN:10032372

    Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lixiang.com.

    Non-GAAP Financial Measure

    The Company uses non-GAAP financial measures, such as non-GAAP cost of sales, non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP income/loss from operations, non-GAAP net income/loss, non-GAAP net income/loss attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/loss per ADS attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/loss per share attributable to ordinary shareholders and free cash flow, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

    The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

    The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

    For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

    Exchange Rate Information

    This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made at a rate of RMB7.2513 to US$1.00, the exchange rate on June 30, 2023, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

    About Li Auto Inc.

    Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is: Create a Mobile Home, Create Happiness (创造移动的家, 创造幸福的家). Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer to successfully commercialize extended-range electric vehicles in China. The Company started volume production in November 2019. Its current model lineup includes Li L9, a six-seat flagship family SUV, Li L8, a six-seat premium family SUV, and Li L7, a five-seat flagship family SUV. The Company leverages technology to create value for its users. It concentrates its in-house development efforts on its proprietary range extension system, next-generation electric vehicle technology, and smart vehicle solutions while expanding its product line by developing new BEVs and EREVs to target a broader user base.

    For more information, please visit: http://ir.lixiang.com.

    Safe Harbor Statement

    This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to,” “challenges,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles; Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    For investor and media inquiries, please contact:

    Li Auto Inc.
    Investor Relations
    Email: ir@lixiang.com

    The Piacente Group, Inc.
    Yang Song
    Tel: +86-10-6508-0677
    Email: Li@tpg-ir.com

    Brandi Piacente
    Tel: +1-212-481-2050
    Email: Li@tpg-ir.com


    Li Auto Inc.
    Unaudited Condensed Consolidated Statements of Comprehensive Income
     
    (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data) 
      
      For the Three Months Ended 
      June 30, 2022 March 31, 2023 June 30, 2023 June 30, 2023  
      RMB RMB RMB US$  
    Revenues:          
    Vehicle sales 8,483,612 18,327,316 27,971,944 3,857,507  
    Other sales and services 249,009 459,737 680,783 93,884  
    Total revenues 8,732,621   18,787,053   28,652,727   3,951,391   
    Cost of sales:          
    Vehicle sales (6,687,273) (14,705,143) (22,084,087) (3,045,535)  
    Other sales and services (167,048) (251,804) (333,362) (45,973)  
    Total cost of sales (6,854,321)   (14,956,947)  (22,417,449)  (3,091,508)  
    Gross profit 1,878,300  3,830,106   6,235,278   859,883   
    Operating expense:          
    Research and development (1,531,644) (1,852,297) (2,425,600) (334,506)  
    Selling, general and administrative (1,325,113) (1,645,307) (2,309,210) (318,455)  
    Other operating income, net  72,701                    125,402                         17,294  
    Total operating expenses (2,856,757)   (3,424,903)  (4,609,408)  (635,667)  
    (Loss)/Income from operations (978,457)  405,203   1,625,870   224,216   
    Other (expense)/income:          
    Interest expense (21,172) (32,438) (28,440) (3,922)  
    Interest income and investment income, net 249,662 418,531 430,262 59,336  
    Others, net 104,695 181,488 324,291 44,722  
    (Loss)/Income before income tax (645,272)  972,784   2,351,983   324,352   
    Income tax benefit/(expense) 4,226 (38,947)                     (41,885)                      (5,776)  
    Net (loss)/income (641,046)  933,837   2,310,098   318,576   
    Less: Net (loss) /income attributable to noncontrolling interests (23,080) 4,169                         16,945                          2,337  
    Net (loss)/income attributable to ordinary shareholders of Li Auto Inc. (617,966)   929,668                     2,293,153                        316,239   
               
    Net (loss)/income (641,046)   933,837   2,310,098   318,576   
    Other comprehensive income/(loss)          
    Foreign currency translation adjustment, net of tax 1,058,208 27,607 (120,809) (16,660)  
    Total other comprehensive income/(loss) 1,058,208  27,607   (120,809)  (16,660)  
    Total comprehensive income 417,162  961,444                     2,189,289                        301,916   
    Less: Net (loss) /income attributable to noncontrolling interests (23,080) 4,169                         16,945                          2,337  
    Comprehensive income attributable to ordinary shareholders of Li Auto Inc. 440,242   957,275                     2,172,344                        299,579   
    Weighted average number of ADSs          
    Basic 965,395,732 979,166,653 980,693,361 980,693,361  
    Diluted 965,395,732 1,052,402,047 1,053,852,487 1,053,852,487  
    Net (loss)/earnings per ADS attributable to ordinary shareholders          
    Basic (0.64) 0.95 2.34 0.32  
    Diluted (0.64) 0.89 2.18 0.30  
    Weighted average number of ordinary shares          
    Basic 1,930,791,463 1,958,333,306 1,961,386,723 1,961,386,723  
    Diluted 1,930,791,463 2,104,804,095 2,107,704,975 2,107,704,975  
    Net (loss)/earnings per share attributable to ordinary shareholders          
    Basic (0.32) 0.47 1.17 0.16  
    Diluted (0.32) 0.45 1.09 0.15  


    Li Auto Inc.
    Unaudited Condensed Consolidated Balance Sheets
    (All amounts in thousands)
            
        As of   
      December 31, 2022 June 30, 2023 June 30, 2023 
      RMB RMB US$ 
    ASSETS       
    Current assets:       
    Cash and cash equivalents 38,478,016 60,741,006 8,376,568 
    Restricted cash 1,940,142 1,514,643 208,879 
    Time deposits and short-term investments 18,031,395 11,513,001 1,587,715 
    Trade receivable 48,381 84,394 11,638 
    Inventories 6,804,693 5,659,293 780,452 
    Prepayments and other current assets 1,689,860 3,084,491 425,371 
    Total current assets 66,992,487   82,596,828   11,390,623  
    Non-current assets:       
    Long-term investments 1,484,491 777,446 107,215 
    Property, plant and equipment, net 11,187,898 13,013,624 1,794,661 
    Operating lease right-of-use assets, net 3,538,911 3,817,676 526,482 
    Intangible assets, net 832,620 840,008 115,842 
    Goodwill 5,484 5,484 756 
    Deferred tax assets 74,767   
    Other non-current assets 2,421,293 2,072,851 285,859 
    Total non-current assets 19,545,464   20,527,089   2,830,815  
    Total assets 86,537,951   103,123,917   14,221,438  
    LIABILITIES AND EQUITY       
    Current liabilities:       
    Short‑term borrowings 390,750 6,344,154 874,899 
    Trade and notes payable 20,024,329 31,269,120 4,312,209 
    Amounts due to related parties 7,190 6,741 930 
    Deferred revenue, current 569,234 1,125,700 155,241 
    Operating lease liabilities, current 696,454 813,495 112,186 
    Accruals and other current liabilities 5,684,644 7,186,468 991,057 
    Total current liabilities 27,372,601   46,745,678   6,446,522  
    Non-current liabilities:       
    Long-term borrowings 9,230,807 1,449,547 199,902 
    Deferred revenue, non-current 581,598 587,643 81,040 
    Operating lease liabilities, non-current 1,946,367 2,127,695 293,423 
    Deferred tax liabilities 77,809 45,512 6,276 
    Other non-current liabilities 2,142,462 2,924,365 403,288 
    Total non-current liabilities 13,979,043   7,134,762   983,929  
    Total liabilities 41,351,644   53,880,440   7,430,451  
    Total Li Auto Inc. shareholders’ equity 44,858,701   48,894,757   6,742,896  
    Noncontrolling interests 327,606 348,720 48,091 
    Total shareholders’ equity 45,186,307   49,243,477   6,790,987  
    Total liabilities and shareholders’ equity 86,537,951   103,123,917   14,221,438  


    Li Auto Inc.
    Unaudited Condensed Consolidated Statements of Cash Flows
    (All amounts in thousands)
         
      For the Three Months Ended  
      June 30,
    2022
     March 31,
    2023
     June 30,
    2023
     June 30,
    2023
     
      RMB RMB RMB US$ 
    Net cash provided by operating activities 1,129,407 7,780,366 11,112,395 1,532,469 
    Net cash (used in)/provided by investing activities (740,518) (2,692,753) 7,573,941 1,044,494 
    Net cash provided by/(used in) financing activities 1,026,855 (195,821) (1,853,582) (255,621) 
    Effect of exchange rate changes 962,704 (25,241) 138,186 19,058 
    Net change in cash, cash equivalents and restricted cash 2,378,448  4,866,551   16,970,940   2,340,400  
    Cash, cash equivalents and restricted cash at beginning of period 34,716,572 40,418,158 45,284,709 6,245,047 
    Cash, cash equivalents and restricted cash at end of period 37,095,020  45,284,709   62,255,649   8,585,447  
              
    Net cash provided by operating activities 1,129,407  7,780,366   11,112,395   1,532,469  
    Capital expenditures (677,755) (1,078,295) (1,491,029) (205,622) 
    Free cash flow (non-GAAP) 451,652  6,702,071  9,621,366             1,326,847  


    Li Auto Inc.
    Unaudited Reconciliation of GAAP and Non-GAAP Results
       
    (All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
     
      For the Three Months Ended 
      June 30,
    2022
     March 31,
    2023
     June 30,
    2023
     June 30,
    2023
     
      RMB RMB RMB US$ 
    Cost of sales (6,854,321) (14,956,947) (22,417,449) (3,091,508) 
    Share-based compensation expenses 9,301 11,186 9,449 1,303 
    Non-GAAP cost of sales (6,845,020)   (14,945,761)  (22,408,000)  (3,090,205) 
              
    Research and development expenses (1,531,644) (1,852,297) (2,425,600) (334,506) 
    Share-based compensation expenses 301,449 336,220 247,064 34,072 
    Non-GAAP research and development expenses (1,230,195)  (1,516,077)  (2,178,536)  (300,434) 
              
    Selling, general and administrative expenses (1,325,113) (1,645,307) (2,309,210) (318,455) 
    Share-based compensation expenses 146,858 132,823 160,928 22,193 
    Non-GAAP selling, general and administrative expenses (1,178,255)  (1,512,484)  (2,148,282)  (296,262) 
              
    (Loss)/Income from operations (978,457) 405,203 1,625,870 224,216 
    Share-based compensation expenses 457,608 480,229 417,441 57,568 
    Non-GAAP (loss)/income from operations (520,849)  885,432   2,043,311   281,784  
              
    Net (loss)/income (641,046) 933,837 2,310,098 318,576 
    Share-based compensation expenses 457,608 480,229 417,441 57,568 
    Non-GAAP net (loss)/income (183,438)   1,414,066   2,727,539   376,144  
              
    Net (loss)/income attributable to ordinary shareholders of Li Auto Inc. (617,966) 929,668 2,293,153 316,239 
    Share-based compensation expenses 457,608 480,229 417,441 57,568 
    Non-GAAP net (loss)/income attributable to ordinary shareholders of Li Auto Inc. (160,358)  1,409,897   2,710,594   373,807  
              
    Weighted average number of ADSs (non-GAAP)         
    Basic 965,395,732 979,166,653 980,693,361 980,693,361 
    Diluted 965,395,732 1,052,402,047 1,053,852,487 1,053,852,487 
    Non-GAAP net (loss)/earnings per ADS attributable to ordinary shareholders         
    Basic (0.17) 1.44 2.76 0.38 
    Diluted (0.17) 1.35 2.58 0.36 
    Weighted average number of ordinary shares (non-GAAP)         
    Basic 1,930,791,463 1,958,333,306 1,961,386,723 1,961,386,723 
    Diluted 1,930,791,463 2,104,804,095 2,107,704,975 2,107,704,975 
    Non-GAAP net (loss)/earnings per share attributable to ordinary shareholders7         
    Basic (0.08) 0.72 1.38 0.19 
    Diluted (0.08) 0.67 1.29 0.18 

    1 All translations from Renminbi (“RMB”) to U.S. dollar (“US$”) are made at a rate of RMB7.2513 to US$1.00, the exchange rate on June 30, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

    2 Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.

    3 The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

    4 Free cash flow represents operating cash flow less capital expenditures, which is considered a non-GAAP financial measure.

    5 Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented.

    6 Each ADS represents two Class A ordinary shares.

    7 Non-GAAP basic net earnings/loss per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income/loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net earnings/loss per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income/loss attributable to ordinary shareholders by the weighted average number of ordinary shares, dilutive potential ordinary shares outstanding during the periods, including the dilutive effects of convertible senior notes as determined under the if-converted method and the dilutive effect of share-based awards as determined under the treasury stock method.


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