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

NET LOSS: The carmaker is forecast to report second-quarter net loss of 1.52 billion yuan, equivalent to $226.1 million, according to the consensus estimate of analysts polled by Visible Alpha. Li Auto reported net profit of 1.09 billion yuan a year earlier.

REVENUE: Li Auto is likely to post report total revenue of 25.17 billion yuan for the second quarter, down 17% from a year earlier, according to Visible Alpha.

Li Auto's Hong Kong-listed shares fell 32% in the second quarter, weighed by sectorwide softer demand in China's auto market.

WHAT TO WATCH:

--GROSS MARGIN: After Li Auto's gross margin fell sharply to 7.9% in the first quarter, investors will watch if the company can hit a more than 10% gross margin for the second quarter, in order to evaluate if the company will see a turnaround in profitability soon. The company has been refreshing its core L-series lineup, which Jefferies expects could help support volume recovery and eventually margin expansion.

--GUIDANCE: Investors will be looking for signs that Li Auto can return to on-year delivery growth in the third quarter after deliveries fell 11.5% in the second quarter. Jefferies expects the refreshed L6 model to be a key driver of the recovery, forecasting monthly L6 sales to rise to around 10,000 units by September, from an average of about 5,000 in the first half. The company has also launched new versions of the L9 and L8, completing the renewal of its L-series lineup.

--BEV STRATEGY: Investors will be looking to see whether Li Auto's battery-electric lineup can gain traction. The company's i8 model has struggled to meet expectations, while the lower-positioned i6 has emerged as a key volume model. Management's comments on the i6's order momentum, profitability and the upcoming i9 launch could offer signals on whether Li Auto's push into battery-electric vehicles can become a meaningful second growth engine.