Li Auto (LI, Financial), a leading player in the electric vehicle sector, announced its financial results for the third quarter ending September 30. The company's total revenue reached 42.9 billion CNY, marking an impressive year-over-year increase of 23.6% and a sequential growth of 35.3%. Net profit was recorded at 2.8 billion CNY, reflecting a slight rise of 0.3% year-over-year and a substantial 56.2% sequential growth. When measured by non-GAAP standards, net profit soared to 3.9 billion CNY, signifying an 11.1% year-over-year increase and a remarkable 156.2% growth quarter-over-quarter.
Following the earnings release, a conference call was held with the company's executives, including Chairman and CEO Xiang Li, CFO Tie Li, President Donghui Ma, and Senior Vice President Liangjun Zou. During the call, analysts posed several questions regarding future growth prospects and technological advancements.
Tim Hsiao, an analyst from Morgan Stanley, inquired about the growth potential of Li Auto's L-series range-extended vehicles. He noted that the company's sales target for the year was set between 502,000 and 512,000 vehicles, suggesting an average monthly sales figure of 53,000 units for the fourth quarter. He asked whether next year's growth would stem from new models like the Li L5, existing model upgrades, exports, or penetration into lower-tier cities.
Liangjun Zou responded that they aim for Li Auto's sales growth next year to be double that of the high-end new energy vehicle (NEV) market, particularly those priced at 200,000 CNY and above.
Another question from Hsiao focused on Li Auto's intelligent driving features. In September, the company rolled out a test version of its "One Click Navigation" feature, allowing parking-to-parking navigation. Hsiao asked when this feature would be fully available and if, with hardware upgrades, the city NOA (Navigation on Autopilot) feature could be integrated into the new Pro models next year.
Donghui Ma explained that over the past ten months, Li Auto's intelligent driving capabilities have undergone several major updates, indicating growing recognition and anticipation from users. The parking-to-parking "One Click Navigation" feature is expected to be fully released to all AD Max users by the end of the year. Additionally, an enhancement enabling seamless ETC (Electronic Toll Collection) passage without interruption at toll stations will be implemented. Although the current city NOA requires higher perception and computational abilities, which the Pro models do not support, he encouraged attention towards upcoming product launches for future capabilities.
