Li Auto Inc. (LI AUTO-W, HKEX: 02015) released its unaudited results for the year ended 31 December 2025, revealing a sharp year-on-year contraction in top- and bottom-line performance as the company accelerated investment in battery-electric vehicles (BEVs) and artificial-intelligence (AI) technology.
Financial Highlights • Revenue: RMB 112.31 billion, down 22.3% from RMB 144.46 billion in 2024, driven by a 23.0% drop in vehicle sales to RMB 106.68 billion. • Gross Profit: RMB 20.99 billion (-29.2% YoY); gross margin slipped to 18.7% from 20.5% on product-mix changes. • Operating Result: Turned to a loss of RMB 0.52 billion versus a profit of RMB 7.02 billion a year earlier. • Net Income: RMB 1.14 billion, down 85.8% YoY. Non-GAAP net income fell 77.5% to RMB 2.40 billion. • R&D Expense: RMB 11.31 billion, representing 10.1% of revenue and up 2.2% YoY, with roughly half channelled to AI projects. • Cash Position: RMB 101.20 billion (cash, cash equivalents, deposits and investments), down 10.3% from end-2024; gearing ratio improved to 52.6% (2024: 56.1%). • No dividend was declared.
Operational Metrics • Vehicle Deliveries: 406,343 units in 2025, lifting cumulative deliveries to 1.54 million. • Market Standing: Maintained top-three share in China’s >RMB 200,000 SUV segment. • Charging Network: Expanded to 3,907 self-operated super-charging stations nationwide (21,651 stalls) by year-end; all stalls ≥250 kW, with 4C/5C piles nearly 70%. • Retail Footprint: 548 stores across 159 cities; servicing centres and authorised shops reached 561 in 224 cities.
Product & Technology Developments • BEV Launches: Introduced six-seat Li i8 (RMB 339,800) and five-seat Li i6 (RMB 249,800) with 720 km CLTC range and 5C super-charging; combined orders topped 100,000 by year-end. • AI & Software: Rolled out VLA Driver large model for assisted driving; MindGPT 3.1 upgrade enhanced smart-cockpit features. • Hardware: Completed tape-out of self-developed 5 nm autonomous-driving chip M100; commercial deployment set for 2026. • New Devices: Launched Livis AI glasses at RMB 1,999, integrating with in-car systems.
Balance Sheet & Funding • Short- and long-term borrowings totalled RMB 9.52 billion; convertible notes of US$862.5 million ($0.86 billion) remain outstanding, re-classified as short-term ahead of 2026 put option. • Capital commitments stood at RMB 6.30 billion; no major acquisitions or disposals during the year.
Management Outlook For 2026, Li Auto plans to intensify overseas expansion across Central Asia, the Middle East, Europe and Southeast Asia, while continuing heavy AI-centric R&D and broadening its product portfolio. Post-year-end, the company delivered 54,089 vehicles in January–February 2026 and increased its super-charging network to 4,054 stations.
Corporate & Governance Notes • MSCI ESG rating maintained at “AAA” for the third consecutive year. • Proposed amendments to Articles of Association aim to align with updated Hong Kong Listing Rules and enhanced shareholder protection standards.
Despite a return to profitability, Li Auto’s steep earnings decline underscores the margin pressure of transitioning to BEVs and scaling AI investments. The company’s sizeable cash reserves and lower gearing provide financial flexibility as it advances its global and technology-driven growth agenda.