Li Auto Q3 Earnings Miss Estimates; Seeks To Be Back On Track To Hit Profitability Inflection Point

  • Li Auto Inc LI reported third-quarter FY22 sales growth of 20.2% year-on-year to RMB9.34 billion ($1.31 billion), missing the consensus of $1.40 billion.
  • Non-GAAP net loss per ADS attributable to ordinary shareholders was $(0.18), against the consensus of $(0.15).
  • Deliveries of Li ONEs jumped 5.6% Y/Y to 26,524 vehicles. Deliveries fell 7.5% Q/Q.
  • Vehicle margin fell 910 basis points Y/Y to 12%.
  • Gross profit decreased 34.8% Y/Y to RMB1.18 billion ($166.2 million), with the margin contracting 1,060 basis points to 12.7%.
  • Operating loss for the quarter expanded to RMB(2.13) billion or $(299.4) million versus RMB(97.8) million last year.
  • The company held cash and equivalents of $7.85 billion as of September 30, 2022. Cash used in operating activities was RMB508.3 million ($71.5 million).
  • As of November 30, 2022, the company had 276 retail stores covering 119 cities, as well as 317 servicing centers and Li Auto-authorized body and paint shops operating in 226 cities.
  • The company’s president and director, Yanan Shen, has tendered his resignation. The company has promoted Donghui Ma, chief engineer, as the president and appointed him as a director, effective January 1, 2023.
  • Xiang Li, founder, chairman, and CEO of Li Auto, commented, "Fueled by our comprehensive capabilities in R&D, supply chain, and intelligent manufacturing, we executed on our product roadmap and delivered another quarter with meaningful progress. Our Li L9 deliveries exceeded 10,000 in the first full month of its production despite the uncertain macro environment and supply chain disruptions."
  • Outlook: Li Auto sees Q4 vehicle deliveries of 45,000 - 48,000.
  • The company expects Q4 revenue of RMB16.51 billion ($2.32 billion) – RMB17.61 billion ($2.47 billion).
  • Tie Li, chief financial officer of Li Auto, added, "Looking ahead, we are optimistic that with rapid production ramp-up, rigorous execution, and responsible cost management, we will realize greater economies of scale and further drive down costs, putting us back on track to hit our profitability inflection point."
  • Price Action: LI shares closed higher by 6.68% at $24.10 On Thursday.
  • Photo Via Wikimedia Commons
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