- Total Revenues: RMB42.9 billion (USD 6.1 billion), up 23.6% year-over-year and 35.3% quarter-over-quarter.
- Vehicle Sales Revenue: RMB41.3 billion (USD 5.9 billion), up 22.9% year-over-year and 36.3% quarter-over-quarter.
- Gross Profit: RMB9.2 billion (USD 1.3 billion), up 20.7% year-over-year and 49.3% quarter-over-quarter.
- Gross Margin: 21.5%, compared to 22% in the same period last year and 19.5% in the prior quarter.
- Vehicle Margin: 20.9%, stable compared to 21.2% last year and improved from 18.7% last quarter.
- Operating Expenses: RMB5.8 billion (USD 825.4 million), up 9.2% year-over-year and 1.5% quarter-over-quarter.
- R&D Expenses: RMB2.6 billion (USD 368.6 million), down 8.2% year-over-year and 14.6% quarter-over-quarter.
- SG&A Expenses: RMB3.4 billion (USD 478.7 million), up 32.1% year-over-year and 19.3% quarter-over-quarter.
- Income from Operations: RMB3.4 billion (USD 489.2 million), up 46.7% year-over-year and 633.4% quarter-over-quarter.
- Operating Margin: 8%, up from 6.7% last year and 1.2% last quarter.
- Net Income: RMB2.8 billion (USD 401.9 million), up 0.3% year-over-year and 156.2% quarter-over-quarter.
- Cash Position: RMB106.5 billion (USD 15.2 billion) as of September 30, 2024.
- Operating Cash Flow: RMB11 billion (USD 1.6 billion), compared to RMB14.5 million last year and negative RMB429.4 million last quarter.
- Free Cash Flow: RMB9.1 billion (USD 1.3 billion), compared to RMB13.2 billion last year and negative RMB1.9 billion last quarter.
- Vehicle Deliveries: Over 152,000 vehicles in Q3, up 45.4% year-over-year.
- Retail Stores: 479 stores in 145 cities as of September 30, 2024.
- Service Centers: 436 centers in 221 cities in China.
- Supercharging Stations: 1,000 stations with 4,888 charging stores in 175 cities.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Li Auto Inc (LI, Financial) achieved a record high of over 152,000 vehicle deliveries in Q3 2024, marking a 45.4% year-over-year increase.
- The company reached a significant milestone of 1 million cumulative vehicle deliveries in just 58 months, the first among emerging new energy vehicle brands in China.
- Li Auto Inc (LI) reported a gross margin expansion to 21.5% in Q3 2024, driven by an improved product mix and economies of scale.
- The company has a strong cash position with RMB106.5 billion as of September 30, 2024, indicating robust financial health.
- Li Auto Inc (LI) continues to innovate in autonomous driving, with significant improvements in user experience and safety features, including a 35-fold increase in miles per accident compared to human drivers.
Negative Points
- The average selling price of vehicles decreased due to a different product mix, impacting revenue growth.
- R&D expenses decreased by 8.2% year-over-year, which could indicate a reduction in investment towards future innovations.
- The company's operating expenses increased by 9.2% year-over-year, driven by higher employee compensation costs.
- Li Auto Inc (LI) faces intense competition in the NEV market, which could impact its market share and pricing strategies.
- The company's expansion into overseas markets is limited, with no immediate plans to enter Western Europe or North America, potentially restricting global growth opportunities.
Q & A Highlights
Q: What is the growth potential for the L Series in the next year, and where might opportunities emerge?
A: James Liangjun Zou, Senior Vice President, Sales and Service, stated that they hope their sales growth next year will be twice the growth rate of the RMB200,000 and higher NEV market. Opportunities may arise from new models, exports, or further penetration into lower-tier cities in China.
Q: When will the point-to-point autonomous driving feature be fully deployed, and will it be available on the Pro version?
A: Xiang Li, CEO, explained that the feature will be launched for all AD Max users by the end of December. However, due to the need for stronger perception and computing power, the current city NOA features will not be available on the Pro model.
Q: What are the plans for the upcoming BEV products, and what is the expected sales volume?
A: Xiang Li, CEO, mentioned that specific launch plans will be announced at a formal product launch event. They are confident in their BEV products and aim to make them Tier 1 players in the high-end market.
Q: How is Li Auto planning to expand its sales network by the end of 2024 and 2025?
A: James Liangjun Zou, Senior Vice President, Sales and Service, stated that they expect to have about 500 retail stores by the end of 2024, with a focus on replacing lower-performing stores with sales centers in leading auto parks. The total display spots in China are expected to reach over 3,600 by the end of 2024.
Q: What is Li Auto's strategy for the overseas market, and which regions are they targeting?
A: James Liangjun Zou, Senior Vice President, Sales and Service, indicated that the Middle East and Central Asia are the initial target regions. They plan to expand their global footprint but are not considering entering Western Europe and North America at this time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
