Press Release: Li Auto Inc. Announces Unaudited Second Quarter 2025 Financial Results

Dow Jones
Aug 28, 2025

Quarterly total revenues reached RMB30.2 billion (US$4.2 billion)(1)

Quarterly deliveries reached 111,074 vehicles

BEIJING, China, Aug. 28, 2025 (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, 2025.

Operating Highlights for the Second Quarter of 2025

   -- Total deliveries for the second quarter of 2025 were 111,074 vehicles, 
      representing a 2.3% year-over-year increase. 
 
                 2025 Q2  2025 Q1  2024 Q4  2024 Q3 
    Deliveries   111,074   92,864  158,696  152,831 
 
                 2024 Q2  2024 Q1  2023 Q4  2023 Q3 
    Deliveries   108,581   80,400  131,805  105,108 
 
 
   -- As of June 30, 2025, in China, the Company had 530 retail stores in 151 
      cities, 511 servicing centers and Li Auto-authorized body and paint shops 
      operating in 222 cities, and 2,851 super charging stations in operation 
      equipped with 15,655 charging stalls. 

Financial Highlights for the Second Quarter of 2025

   -- Vehicle sales were RMB28.9 billion (US$4.0 billion) in the second quarter 
      of 2025, representing a decrease of 4.7% from RMB30.3 billion in the 
      second quarter of 2024 and an increase of 17.0% from RMB24.7 billion in 
      the first quarter of 2025. 
 
   -- Vehicle margin2 was 19.4% in the second quarter of 2025, compared with 
      18.7% in the second quarter of 2024 and 19.8% in the first quarter of 
      2025. 
 
   -- Total revenues were RMB30.2 billion (US$4.2 billion) in the second 
      quarter of 2025, representing a decrease of 4.5% from RMB31.7 billion in 
      the second quarter of 2024 and an increase of 16.7% from RMB25.9 billion 
      in the first quarter of 2025. 
 
   -- Gross profit was RMB6.1 billion (US$846.9 million) in the second quarter 
      of 2025, representing a decrease of 1.8% from RMB6.2 billion in the 
      second quarter of 2024 and an increase of 14.1% from RMB5.3 billion in 
      the first quarter of 2025. 
 
   -- Gross margin was 20.1% in the second quarter of 2025, compared with 19.5% 
      in the second quarter of 2024 and 20.5% in the first quarter of 2025. 
 
   -- Operating expenses were RMB5.2 billion (US$731.5 million) in the second 
      quarter of 2025, representing a decrease of 8.2% from RMB5.7 billion in 
      the second quarter of 2024 and an increase of 3.8% from RMB5.0 billion in 
      the first quarter of 2025. 
 
   -- Income from operations was RMB827.0 million (US$115.4 million) in the 
      second quarter of 2025, representing an increase of 76.7% from RMB468.0 
      million in the second quarter of 2024 and an increase of 204.4% from 
      RMB271.7 million in the first quarter of 2025. 
 
   -- Operating margin was 2.7% in the second quarter of 2025, compared with 
      1.5% in the second quarter of 2024 and 1.0% in the first quarter of 2025. 
 
   -- Net income was RMB1.1 billion (US$153.1 million) in the second quarter of 
      2025, representing a decrease of 0.4% from RMB1.1 billion in the second 
      quarter of 2024 and an increase of 69.6% from RMB646.6 million in the 
      first quarter of 2025. Non-GAAP net income3 was RMB1.5 billion (US$204.9 
      million) in the second quarter of 2025, representing a decrease of 2.3% 
      from RMB1.5 billion in the second quarter of 2024 and an increase of 
      44.7% from RMB1.0 billion in the first quarter of 2025. 
 
   -- Diluted net earnings per ADS4 attributable to ordinary shareholders was 
      RMB1.03 (US$0.14) in the second quarter of 2025, compared with RMB1.05 in 
      the second quarter of 2024 and RMB0.62 in the first quarter of 2025. 
      Non-GAAP diluted net earnings per ADS attributable to ordinary 
      shareholders was RMB1.37 (US$0.19) in the second quarter of 2025, 
      compared with RMB1.42 in the second quarter of 2024 and RMB0.96 in the 
      first quarter of 2025. 
 
   -- Net cash used in operating activities was RMB3.0 billion (US$423.8 
      million) in the second quarter of 2025, representing an increase of 
      607.1% from RMB429.4 million in the second quarter of 2024 and an 
      increase of 78.5% from RMB1.7 billion in the first quarter of 2025. 
 
   -- Free cash flow5 was negative RMB3.8 billion (US$536.3 million) in the 
      second quarter of 2025, representing an increase of 107.4% from negative 
      RMB1.9 billion in the second quarter of 2024 and an increase of 51.8% 
      from negative RMB2.5 billion in the first quarter of 2025. 
 
Key Financial Results 
 (in millions, except for percentages and per ADS data) 
-------------------------------------------------------------------- 
 
                 For the Three Months Ended        % Change(6) 
               -------------------------------  ------------------ 
               June 30,   March 31,  June 30, 
                  2024       2025       2025      YoY       QoQ 
               ---------  ---------  ---------  --------  -------- 
                  RMB        RMB        RMB 
Vehicle sales   30,319.7   24,678.6   28,885.1    (4.7)%     17.0% 
Vehicle 
 margin            18.7%      19.8%      19.4%    0.7pts  (0.4)pts 
 
Total 
 revenues       31,678.4   25,926.8   30,245.6    (4.5)%     16.7% 
Gross profit     6,176.9    5,318.5    6,067.0    (1.8)%     14.1% 
Gross margin       19.5%      20.5%      20.1%    0.6pts  (0.4)pts 
 
Operating 
 expenses      (5,708.9)  (5,046.8)  (5,240.0)    (8.2)%      3.8% 
Income from 
 operations        468.0      271.7      827.0     76.7%    204.4% 
Operating 
 margin             1.5%       1.0%       2.7%    1.2pts    1.7pts 
 
Net income       1,100.9      646.6    1,096.9    (0.4)%     69.6% 
Non-GAAP net 
 income          1,503.1    1,014.3    1,468.2    (2.3)%     44.7% 
 
Diluted net 
 earnings per 
 ADS 
 attributable 
 to ordinary 
 shareholders       1.05       0.62       1.03    (1.9)%     66.1% 
Non-GAAP 
 diluted net 
 earnings per 
 ADS 
 attributable 
 to ordinary 
 shareholders       1.42       0.96       1.37    (3.5)%     42.7% 
 
Net cash used 
 in operating 
 activities      (429.4)  (1,701.0)  (3,036.2)    607.1%     78.5% 
Free cash 
 flow 
 (non-GAAP)    (1,852.7)  (2,530.6)  (3,841.8)    107.4%     51.8% 
 
 

Recent Developments

Delivery Update

   -- In July 2025, the Company delivered 30,731 vehicles. As of July 31, 2025, 
      in China, the Company had 535 retail stores in 153 cities, 527 servicing 
      centers and Li Auto-authorized body and paint shops operating in 222 
      cities, and 3,028 super charging stations in operation equipped with 
      16,671 charging stalls. 

Environmental, Social, and Governance $(ESG)$ Performance

   -- In July 2025, the Company received the highest MSCI ESG rating of "AAA" 
      for the third consecutive year, reflecting its effective management of 
      ESG risks and opportunities. 

Li i8

   -- In July 2025, the Company launched Li i8, a six-seat battery electric 
      family SUV. Built on a new high-voltage BEV platform, Li i8 comes 
      standard with a dual-motor all-wheel drive system with a proprietary 
      drive motor and adopts a 97.8 kWh ternary lithium 5C super charging 
      battery pack to deliver a 720 km CLTC range. Li i8 supports a 500 km 
      driving range with only ten minutes of charging, offering a range 
      anxiety-free travel experience backed by the largest super charging 
      network among Chinese automakers. Its yacht-inspired design offers low 
      drag, spacious interiors, and panoramic visibility. As an SUV of the new 
      era, Li i8 combines off-road versatility, sedan-like handling, and 
      MPV-grade comfort. Additionally, Li i8 comes standard with LiDAR and 
      features the Li AD Max advanced assisted driving system powered by its 
      proprietary VLA Driver large model, as well as Li Xiang Tong Xue Agent 
      supported by its proprietary foundation model, MindGPT. Li i8 is priced 
      at RMB339,800, with deliveries having started on August 20, 2025. 

CEO and CFO Comments

Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, "Our relentless pursuit of user-centric technological and product innovations solidified our position as China's best-selling domestic automotive brand in the RMB200,000 and above NEV market. Following Li MEGA Home's enthusiastic market reception, Li MEGA quickly became the top-seller among MPVs priced above RMB500,000 since May. We also further advanced our BEV and intelligence initiatives. In July, we launched Li i8, a six-seat battery electric family SUV, alongside our in-house developed VLA Driver large model and Li Xiang Tong Xue Agent, transforming our research and development breakthroughs into enhanced product experiences. Li i8 redefines what it means to be a modern SUV, with the versatility of an off-roader, handling of a sedan, and comfort of an MPV, driving widespread user recognition for its all-new driving and riding experience. Recently, we also announced our brand upgrade, aiming to provide a high-quality home, a premium private space for a diverse range of consumers, including family users. We will continue to invest in products and intelligence, and look forward to the September launch of Li i6 to expand our model lineup and further elevate our position in China's premium BEV market."

Mr. Tie Li, chief financial officer of Li Auto, added, "In the second quarter, we remained focused on cost optimization and operational efficiency enhancement while navigating a dynamic market, achieving solid profitability that underscores our financial resilience and effective execution. Our quarterly total revenues reached RMB30.2 billion, with gross margin remaining healthy at 20.1%, and our net income increased to RMB1.1 billion, up 69.6% quarter-over-quarter. Leveraging our solid financial position to scale innovation-driven growth, we are confident in our ability to cement our industry-leading position while fueling future breakthroughs across the automotive and intelligence ecosystems."

Financial Results for the Second Quarter of 2025

Revenues

   -- Total revenues were RMB30.2 billion (US$4.2 billion) in the second 
      quarter of 2025, representing a decrease of 4.5% from RMB31.7 billion in 
      the second quarter of 2024 and an increase of 16.7% from RMB25.9 billion 
      in the first quarter of 2025. 
 
   -- Vehicle sales were RMB28.9 billion (US$4.0 billion) in the second quarter 
      of 2025, representing a decrease of 4.7% from RMB30.3 billion in the 
      second quarter of 2024 and an increase of 17.0% from RMB24.7 billion in 
      the first quarter of 2025. The decrease in revenue from vehicle sales 
      over the second quarter of 2024 was primarily attributable to lower 
      average selling price due to different product mix, interest subsidies 
      provided to customers and increased sales incentives, partially offset by 
      increase in vehicle deliveries. The increase in revenue from vehicle 
      sales over the first quarter of 2025 was primarily attributable to the 
      increase in vehicle deliveries. 
 
   -- Other sales and services were RMB1.4 billion (US$189.9 million) in the 
      second quarter of 2025, representing an increase of 0.1% from RMB1.4 
      billion in the second quarter of 2024 and an increase of 9.0% from RMB1.2 
      billion in the first quarter of 2025. The revenue from other sales and 
      services remained relatively stable over the second quarter of 2024. The 
      increase in revenue from other sales and services over the first quarter 
      of 2025 was mainly due to increased provision of services and sales of 
      accessories, which is in line with higher accumulated vehicle sales. 

Cost of Sales and Gross Margin

   -- Cost of sales was RMB24.2 billion (US$3.4 billion) in the second quarter 
      of 2025, representing a decrease of 5.2% from RMB25.5 billion in the 
      second quarter of 2024 and an increase of 17.3% from RMB20.6 billion in 
      the first quarter of 2025. The decrease in cost of sales over the second 
      quarter of 2024 was primarily attributable to lower average cost of sales 
      due to cost reduction and different product mix, partially offset by the 
      increase in vehicle deliveries. The increase in cost of sales over the 
      first quarter of 2025 was primarily attributable to the increase in 
      vehicle deliveries. 
 
   -- Gross profit was RMB6.1 billion (US$846.9 million) in the second quarter 
      of 2025, representing a decrease of 1.8% from RMB6.2 billion in the 
      second quarter of 2024 and an increase of 14.1% from RMB5.3 billion in 
      the first quarter of 2025. 
 
   -- Vehicle margin was 19.4% in the second quarter of 2025, compared with 
      18.7% in the second quarter of 2024 and 19.8% in the first quarter of 
      2025. The increase in vehicle margin over the second quarter of 2024 was 
      mainly attributable to lower average cost of sales mainly due to cost 
      reduction, partially offset by lower average selling price due to 
      different product mix, interest subsidies provided to customers and 
      increased sales incentives. The vehicle margin remained relatively stable 
      over the first quarter of 2025. 
 
   -- Gross margin was 20.1% in the second quarter of 2025, compared with 19.5% 
      in the second quarter of 2024 and 20.5% in the first quarter of 2025. The 
      increase in gross margin over the second quarter of 2024 was mainly due 
      to the increase in vehicle margin. The gross margin remained relatively 
      stable over the first quarter of 2025. 

Operating Expenses

   -- Operating expenses were RMB5.2 billion (US$731.5 million) in the second 
      quarter of 2025, representing a decrease of 8.2% from RMB5.7 billion in 
      the second quarter of 2024 and an increase of 3.8% from RMB5.0 billion in 
      the first quarter of 2025. 
 
   -- Research and development expenses were RMB2.8 billion (US$392.3 million) 
      in the second quarter of 2025, representing a decrease of 7.2% from 
      RMB3.0 billion in the second quarter of 2024 and an increase of 11.8% 
      from RMB2.5 billion in the first quarter of 2025. The decrease in 
      research and development expenses over the second quarter of 2024 was 
      mainly attributable to decreased employee compensation. The increase in 
      research and development expenses over the first quarter of 2025 was 
      mainly attributable to impact of pace of new vehicle programs and 
      increased expenses to support our expanding product portfolios and 
      technologies. 
 
   -- Selling, general and administrative expenses were RMB2.7 billion 
      (US$379.4 million) in the second quarter of 2025, representing a decrease 
      of 3.5% from RMB2.8 billion in the second quarter of 2024 and an increase 
      of 7.4% from RMB2.5 billion in the first quarter of 2025. The decrease in 
      selling, general and administrative expenses over the second quarter of 
      2024 was primarily due to decreased employee compensation, partially 
      offset by increased marketing and promotional activities. The increase in 
      selling, general and administrative expenses over the first quarter of 
      2025 was primarily due to increased marketing and promotional activities. 

Income from Operations

   -- Income from operations was RMB827.0 million (US$115.4 million) in the 
      second quarter of 2025, representing an increase of 76.7% from RMB468.0 
      million in the second quarter of 2024 and an increase of 204.4% from 
      RMB271.7 million in the first quarter of 2025. Operating margin was 2.7% 
      in the second quarter of 2025, compared with 1.5% in the second quarter 
      of 2024 and 1.0% in the first quarter of 2025. Non-GAAP income from 
      operations was RMB1.2 billion (US$167.3 million) in the second quarter of 
      2025, representing an increase of 37.7% from RMB870.1 million in the 
      second quarter of 2024 and an increase of 87.4% from RMB639.3 million in 
      the first quarter of 2025. 

Net Income and Net Earnings Per Share

   -- Net income was RMB1.1 billion (US$153.1 million) in the second quarter of 
      2025, representing a decrease of 0.4% from RMB1.1 billion in the second 
      quarter of 2024 and an increase of 69.6% from RMB646.6 million in the 
      first quarter of 2025. Non-GAAP net income was RMB1.5 billion (US$204.9 
      million) in the second quarter of 2025, representing a decrease of 2.3% 
      from RMB1.5 billion in the second quarter of 2024 and an increase of 
      44.7% from RMB1.0 billion in the first quarter of 2025. 
 
   -- Basic and diluted net earnings per ADS attributable to ordinary 
      shareholders were RMB1.09 (US$0.15) and RMB1.03 (US$0.14) in the second 
      quarter of 2025, respectively, compared with RMB1.11 and RMB1.05 in the 
      second quarter of 2024, respectively, and RMB0.65 and RMB0.62 in the 
      first quarter of 2025, respectively. Non-GAAP basic and diluted net 
      earnings per ADS attributable to ordinary shareholders were RMB1.46 
      (US$0.20) and RMB1.37 (US$0.19) in the second quarter of 2025, 
      respectively, compared with RMB1.51 and RMB1.42 in the second quarter of 
      2024, respectively, and RMB1.01 and RMB0.96 in the first quarter of 2025, 
      respectively. 

Cash Position, Operating Cash Flow and Free Cash Flow

   -- Cash position7 was RMB106.9 billion (US$14.9 billion) as of June 30, 
      2025. 
 
   -- Net cash used in operating activities was RMB3.0 billion (US$423.8 
      million) in the second quarter of 2025, representing an increase of 
      607.1% from RMB429.4 million in the second quarter of 2024 and an 
      increase of 78.5% from RMB1.7 billion in the first quarter of 2025. The 
      change in net cash used in operating activities over the second quarter 
      of 2024 and first quarter of 2025 was mainly due to increased payment 
      related to inventory purchase. 
 
   -- Free cash flow was negative RMB3.8 billion (US$536.3 million) in the 
      second quarter of 2025, representing an increase of 107.4% from negative 
      RMB1.9 billion in the second quarter of 2024 and an increase of 51.8% 
      from negative RMB2.5 billion in the first quarter of 2025. 

Business Outlook

For the third quarter of 2025, the Company expects:

   -- Deliveries of vehicles to be between 90,000 and 95,000 vehicles, 
      representing a year-over-year decrease of 41.1% to 37.8%. 
   -- Total revenues to be between RMB24.8 billion (US$3.5 billion) and RMB26.2 
      billion (US$3.7 billion), representing a year-over-year decrease of 42.1% 
      to 38.8%. 

This business outlook reflects the Company's current and preliminary views on its business situation and market conditions, which are subject to change.

Conference Call

Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Thursday, August 28, 2025 (8:00 p.m. Beijing/Hong Kong Time on August 28, 2025) 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/10048990-4d8gt5.html

A replay of the conference call will be accessible through September 4, 2025, 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:                 10048990 
 
 

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

Non-GAAP Financial Measures

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 from operations, non-GAAP net income, non-GAAP net income attributable to ordinary shareholders, non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders, non-GAAP basic and diluted net earnings 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 and release of valuation allowance on deferred tax assets, 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 financial information 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 U.S. 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 RMB7.1636 to US$1.00, the exchange rate on June 30, 2025, 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 ( , ). 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 in successfully commercializing extended-range electric vehicles in China. While firmly advancing along this technological route, it builds platforms for battery electric vehicles in parallel. The Company leverages technology to create value for users. It concentrates its in-house development efforts on proprietary range extension systems, innovative electric vehicle technologies, and smart vehicle solutions. The Company started volume production in November 2019. Its current model lineup includes a high-tech flagship family MPV, four Li L series extended-range electric SUVs, and one Li i series battery electric SUV. The Company will continue to expand its product lineup to target a broader user base.

For more information, please visit: https://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 and high-power charging battery 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

Christensen Advisory

Roger Hu

Tel: +86-10-5900-1548

Email: Li@christensencomms.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,       March 31,      June 30,       June 30, 
                             2024           2025           2025           2025 
                        -------------  -------------  -------------  ------------- 
                             RMB            RMB            RMB            US$ 
Revenues: 
   Vehicle sales           30,319,728     24,678,585     28,885,133      4,032,209 
   Other sales and 
    services                1,358,668      1,248,229      1,360,480        189,916 
                        -------------  -------------  -------------  ------------- 
Total revenues             31,678,396     25,926,814     30,245,613      4,222,125 
                        -------------  -------------  -------------  ------------- 
Cost of sales: 
   Vehicle sales         (24,635,504)   (19,801,927)   (23,273,292)    (3,248,826) 
   Other sales and 
    services                (865,950)      (806,428)      (905,352)      (126,382) 
                        -------------  -------------  -------------  ------------- 
Total cost of sales      (25,501,454)   (20,608,355)   (24,178,644)    (3,375,208) 
                        -------------  -------------  -------------  ------------- 
Gross profit                6,176,942      5,318,459      6,066,969        846,917 
                        -------------  -------------  -------------  ------------- 
Operating expenses: 
   Research and 
    development           (3,027,581)    (2,513,854)    (2,810,170)      (392,285) 
   Selling, general 
    and 
    administrative        (2,815,105)    (2,531,009)    (2,717,761)      (379,385) 
   Other operating 
    income/(expense), 
    net                       133,773        (1,942)        287,980         40,200 
                                                      -------------  ------------- 
Total operating 
 expenses                 (5,708,913)    (5,046,805)    (5,239,951)      (731,470) 
                        -------------  -------------  -------------  ------------- 
Income from operations        468,029        271,654        827,018        115,447 
Other 
(expense)/income: 
   Interest expense          (43,231)       (48,220)       (49,776)        (6,948) 
   Interest income and 
    investment income, 
    net                       370,034        516,261        496,454         69,302 
   Others, net                383,237         34,730         15,288          2,135 
                        -------------  -------------  -------------  ------------- 
Income before income 
 tax                        1,178,069        774,425      1,288,984        179,936 
   Income tax expense        (77,129)      (127,780)      (192,048)       (26,809) 
                        -------------  -------------  -------------  ------------- 
Net income                  1,100,940        646,645      1,096,936        153,127 
                        -------------  -------------  -------------  ------------- 
   Less: Net 
    (loss)/income 
    attributable to 
    noncontrolling 
    interests                 (1,653)        (3,679)          4,365            609 
                        -------------  -------------  -------------  ------------- 
Net income 
 attributable to 
 ordinary shareholders 
 of Li Auto Inc.            1,102,593        650,324      1,092,571        152,518 
                        =============  =============  =============  ============= 
 
Net income                  1,100,940        646,645      1,096,936        153,127 
                        -------------  -------------  -------------  ------------- 
Other comprehensive 
income/(loss), net of 
tax 
   Foreign currency 
    translation 
    adjustment, net of 
    nil tax                    12,444       (69,994)      (173,612)       (24,235) 
                        -------------  -------------  -------------  ------------- 
Total other 
 comprehensive 
 income/(loss), net of 
 tax                           12,444       (69,994)      (173,612)       (24,235) 
                        -------------  -------------  -------------  ------------- 
Total comprehensive 
 income                     1,113,384        576,651        923,324        128,892 
   Less: Net 
    (loss)/income 
    attributable to 
    noncontrolling 
    interests                 (1,653)        (3,679)          4,365            609 
Comprehensive income 
 attributable to 
 ordinary shareholders 
 of Li Auto Inc.            1,115,037        580,330        918,959        128,283 
                        =============  =============  =============  ============= 
Weighted average 
number of ADSs 
   Basic                  994,833,579  1,004,099,494  1,005,986,033  1,005,986,033 
   Diluted              1,062,428,185  1,069,104,610  1,071,261,046  1,071,261,046 
Net earnings per ADS 
attributable to 
ordinary 
shareholders 
   Basic                         1.11           0.65           1.09           0.15 
   Diluted                       1.05           0.62           1.03           0.14 
Weighted average 
number of ordinary 
shares 
   Basic                1,989,667,158  2,008,198,987  2,011,972,066  2,011,972,066 
   Diluted              2,124,856,370  2,138,209,219  2,142,522,091  2,142,522,091 
Net earnings per 
share attributable to 
ordinary 
shareholders 
   Basic                         0.55           0.32           0.54           0.08 
   Diluted                       0.52           0.31           0.51           0.07 
 
 
Li Auto Inc. 
 Unaudited Condensed Consolidated Balance Sheets 
 (All amounts in thousands) 
 
                                                  As of 
                                 December 31,   June 30,     June 30, 
                                     2024          2025        2025 
                                 ------------  -----------  ---------- 
                                     RMB           RMB         US$ 
ASSETS 
Current assets: 
Cash and cash equivalents          65,901,123   49,790,369   6,950,468 
Restricted cash                         6,849        6,597         921 
Time deposits and short-term 
 investments                       46,904,548   57,128,448   7,974,824 
Trade receivable                      135,112       85,698      11,963 
Inventories                         8,185,604   11,732,340   1,637,772 
Prepayments and other current 
 assets                             5,176,546    4,793,124     669,094 
                                 ------------  -----------  ---------- 
Total current assets              126,309,782  123,536,576  17,245,042 
                                 ------------  -----------  ---------- 
Non-current assets: 
Long-term investments                 922,897      827,727     115,546 
Property, plant and equipment, 
 net                               21,140,933   22,031,465   3,075,474 
Operating lease right-of-use 
 assets, net                        8,323,963    9,100,442   1,270,373 
Intangible assets, net                914,951      933,707     130,340 
Goodwill                                5,484        5,484         766 
Deferred tax assets                 2,542,180    2,855,550     398,619 
Other non-current assets            2,188,888    1,995,054     278,499 
Total non-current assets           36,039,296   37,749,429   5,269,617 
                                 ------------  -----------  ---------- 
Total assets                      162,349,078  161,286,005  22,514,659 
                                 ============  ===========  ========== 
LIABILITIES AND EQUITY 
Current liabilities: 
Short-term borrowings                 281,102    6,391,223     892,180 
Trade and notes payable            53,596,194   49,967,321   6,975,169 
Amounts due to related parties         11,492       18,176       2,537 
Deferred revenue, current           1,396,489    1,405,462     196,195 
Operating lease liabilities, 
 current                            1,438,092    1,632,735     227,921 
Finance lease liabilities, 
 current                               95,205      100,971      14,095 
Accruals and other current 
 liabilities                       12,397,322   11,696,368   1,632,748 
                                 ------------  -----------  ---------- 
Total current liabilities          69,215,896   71,212,256   9,940,845 
                                 ------------  -----------  ---------- 
Non-current liabilities: 
Long-term borrowings                8,151,598    1,834,260     256,053 
Deferred revenue, non-current         720,531      663,117      92,568 
Operating lease liabilities, 
 non-current                        5,735,738    6,354,236     887,017 
Finance lease liabilities, 
 non-current                          642,984      602,495      84,105 
Deferred tax liabilities              864,999      762,974     106,507 
Other non-current liabilities       5,696,950    6,228,174     869,420 
                                 ------------  -----------  ---------- 
Total non-current liabilities      21,812,800   16,445,256   2,295,670 
                                 ------------  -----------  ---------- 
Total liabilities                  91,028,696   87,657,512  12,236,515 
                                 ============  ===========  ========== 
Total Li Auto Inc. 
 shareholders' equity              70,874,884   73,122,309  10,207,483 
                                 ------------  -----------  ---------- 
Noncontrolling interests              445,498      506,184      70,661 
                                 ------------  -----------  ---------- 
Total shareholders' equity         71,320,382   73,628,493  10,278,144 
                                 ------------  -----------  ---------- 
Total liabilities and 
 shareholders' equity             162,349,078  161,286,005  22,514,659 
                                 ============  ===========  ========== 
 
 
Li Auto Inc. 
 Unaudited Condensed Consolidated Statements of Cash 
 Flows 
 (All amounts in thousands) 
 
                                 For the Three Months Ended 
                      ------------------------------------------------- 
                       June 30,     March 31,     June 30,    June 30, 
                          2024         2025          2025        2025 
                          RMB          RMB           RMB         US$ 
Net cash used in 
 operating 
 activities             (429,397)   (1,700,968)  (3,036,219)  (423,840) 
Net cash used in 
 investing 
 activities           (3,839,308)  (10,959,789)    (226,724)   (31,649) 
Net cash (used 
 in)/provided by 
 financing 
 activities             (104,743)        61,406     (70,037)    (9,777) 
Effect of exchange 
 rate changes on 
 cash, cash 
 equivalents and 
 restricted cash           32,257      (70,282)    (108,393)   (15,131) 
                      -----------  ------------  -----------  --------- 
Net change in cash, 
 cash equivalents 
 and restricted 
 cash                 (4,341,191)  (12,669,633)  (3,441,373)  (480,397) 
                      -----------  ------------  -----------  --------- 
Cash, cash 
 equivalents and 
 restricted cash at 
 beginning of 
 period                85,129,987    65,907,972   53,238,339  7,431,786 
                      -----------  ------------  -----------  --------- 
Cash, cash 
 equivalents and 
 restricted cash at 
 end of period         80,788,796    53,238,339   49,796,966  6,951,389 
                      ===========  ============  ===========  ========= 
 
Net cash used in 
 operating 
 activities             (429,397)   (1,700,968)  (3,036,219)  (423,840) 
Capital expenditures  (1,423,332)     (829,597)    (805,544)  (112,450) 
                      -----------  ------------  -----------  --------- 
Free cash flow 
 (non-GAAP)           (1,852,729)   (2,530,565)  (3,841,763)  (536,290) 
                      ===========  ============  ===========  ========= 
 
 
Li Auto Inc. 
 Unaudited Reconciliation of U.S. 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,       March 31,      June 30,       June 30, 
                        2024           2025           2025           2025 
                   -------------  -------------  -------------  ------------- 
                        RMB            RMB            RMB            US$ 
Cost of sales       (25,501,454)   (20,608,355)   (24,178,644)    (3,375,208) 
Share-based 
 compensation 
 expenses                  7,652          7,196          8,135          1,136 
                   -------------  -------------  -------------  ------------- 
Non-GAAP cost of 
 sales              (25,493,802)   (20,601,159)   (24,170,509)    (3,374,072) 
                   =============  =============  =============  ============= 
 
Research and 
 development 
 expenses            (3,027,581)    (2,513,854)    (2,810,170)      (392,285) 
Share-based 
 compensation 
 expenses                224,332        238,932        236,668         33,038 
                   -------------  -------------  -------------  ------------- 
Non-GAAP research 
 and development 
 expenses            (2,803,249)    (2,274,922)    (2,573,502)      (359,247) 
                   =============  =============  =============  ============= 
 
Selling, general 
 and 
 administrative 
 expenses            (2,815,105)    (2,531,009)    (2,717,761)      (379,385) 
Share-based 
 compensation 
 expenses                170,129        121,511        126,413         17,647 
                   -------------  -------------  -------------  ------------- 
Non-GAAP selling, 
 general and 
 administrative 
 expenses            (2,644,976)    (2,409,498)    (2,591,348)      (361,738) 
                   =============  =============  =============  ============= 
 
Income from 
 operations              468,029        271,654        827,018        115,447 
Share-based 
 compensation 
 expenses                402,113        367,639        371,216         51,821 
                   -------------  -------------  -------------  ------------- 
Non-GAAP income 
 from operations         870,142        639,293      1,198,234        167,268 
                   =============  =============  =============  ============= 
 
Net income             1,100,940        646,645      1,096,936        153,127 
Share-based 
 compensation 
 expenses                402,113        367,639        371,216         51,821 
Non-GAAP net 
 income(8)             1,503,053      1,014,284      1,468,152        204,948 
                   =============  =============  =============  ============= 
 
Net income 
 attributable to 
 ordinary 
 shareholders of 
 Li Auto Inc.          1,102,593        650,324      1,092,571        152,518 
Share-based 
 compensation 
 expenses                402,113        367,639        371,216         51,821 
Non-GAAP net 
 income 
 attributable to 
 ordinary 
 shareholders of 
 Li Auto Inc.          1,504,706      1,017,963      1,463,787        204,339 
                   =============  =============  =============  ============= 
 
Weighted average 
number of ADSs 
   Basic             994,833,579  1,004,099,494  1,005,986,033  1,005,986,033 
   Diluted         1,062,428,185  1,069,104,610  1,071,261,046  1,071,261,046 
Non-GAAP net 
earnings per ADS 
attributable to 
ordinary 
shareholders 
   Basic                    1.51           1.01           1.46           0.20 
   Diluted                  1.42           0.96           1.37           0.19 
Weighted average 
number of 
ordinary shares 
   Basic           1,989,667,158  2,008,198,987  2,011,972,066  2,011,972,066 
   Diluted         2,124,856,370  2,138,209,219  2,142,522,091  2,142,522,091 
Non-GAAP net 
earnings per 
share 
attributable to 
ordinary 
shareholders(9) 
   Basic                    0.76           0.51           0.73           0.10 
   Diluted                  0.71           0.48           0.69           0.10 
 

______________________

(1) All translations from Renminbi ("RMB") to U.S. dollars ("US$") are made at a rate of RMB7.1636 to US$1.00, the exchange rate on June 30, 2025 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 and release of valuation allowance on deferred tax assets. See "Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results" set forth at the end of this press release.

(4) Each ADS represents two Class A ordinary shares.

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

(6) Except for vehicle margin, gross margin, and operating margin, where absolute changes instead of percentage changes are presented.

(7) Cash position includes cash and cash equivalents, restricted cash, time deposits and short-term investments, and long-term time deposits and financial instruments included in long-term investments.

(8) Non-GAAP items have no tax impact for all the periods presented.

(9) Non-GAAP basic net earnings per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net earnings per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of ordinary shares and 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.

(END) Dow Jones Newswires

 
 
 
 
 
 
 
 
 
 
 

By Jiahui Huang

 

Li Auto guided for lower sales in the third quarter as it reported weaker profit and revenue amid intense competition in China's auto market.

The plug-in hybrid specialist said Thursday that second-quarter net profit edged 0.9% lower to 1.09 billion yuan, equivalent to $152.4 million, missing the 1.32 billion yuan consensus estimate in a Visible Alpha poll.

Revenue dropped 4.5% from a year earlier to 30.25 billion yuan, below analysts' expectations of 33.04 billion yuan. That came as the automaker delivered 111,074 units in the April-June period, lower than its guidance of between 123,000 and 128,000 vehicles.

Li Auto was considered one of the more successful Chinese automakers by sales volume last year. Now it is contending with slowing sales as its rivals introduce more new models, threatening its market share in the plug-in hybrid space. Adding to its challenges, the company recently launched the Li i8, a six-seater fully electric SUV, which is expected to weigh on margins.

Li Auto said it expects to deliver between 90,000 and 95,000 vehicles for the third quarter, with revenue projected at 24.8 billion yuan to 26.2 billion yuan, down 39%-42% from a year earlier.

 

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

 

(END) Dow Jones Newswires

August 28, 2025 05:04 ET (09:04 GMT)

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