By Jiahui Huang

Li Auto is scheduled to report results for the first quarter on Thursday. Here's what you need to know:

NET PROFIT: Li Auto might swing to a net loss of 2.4 billion yuan, equivalent to $353.6 million, in the three months ended March 31, according to the consensus estimate of analysts polled by Visible Alpha. The Chinese automaker reported a net profit of 650.3 million yuan a year earlier.

REVENUE: Li Auto is expected to report total revenue of 23.25 billion yuan for the first quarter, down 10% from a year earlier, according to the poll.

Li Auto's Hong Kong-listed shares rose 4.4% in the first quarter, partly driven by the company's share-buyback plan.

WHAT TO WATCH:

-- MARGIN: The company is likely to face a brutal first quarter, with Bernstein analysts expecting a vehicle gross margin of only 5%. The sequential deterioration is driven by a reduction in L-series plug-in hybrid inventories, purchase tax subsidies and additional discounts, as well as rising material costs, primarily from lithium batteries, the analysts said in a recent note. Investors will closely watch the company's margin to evaluate profitability and cost controls.

-- GUIDANCE: Investors will be scrutinizing the company's guidance for second-quarter deliveries and revenue. The company's forecast will signal whether its new models can boost sales in the second quarter.

-- NEW MODELS: Li Auto's planned vehicle launches might improve the trading backdrop next quarter, but it remains uncertain whether the company can convert the current product cycle into sustained gains in volume, mix and profitability, HSBC Global Research analysts said in a recent note. Investors will be watching the sales volume of its new models this year.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

May 27, 2026 00:02 ET (04:02 GMT)

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