Its adjusted net earnings per ADS were 0.96 Chinese yuan (13 cents), beating the analyst consensus estimate of 0.89 Chinese yuan (12 cents).

Vehicle sales increased 1.8% to $3.4 billion due to increased vehicle deliveries partially offset by the lower average selling price, mainly due to different product mixes. Total vehicle deliveries were 92,864 units in the quarter, a 15.5% Y/Y increase.

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The vehicle margin climbed 50 bps to 19.8%, and the gross margin remained flattish at 20.5%, backed by cost management and growing economies of scale. 

Adjusted income from operations was $88.1 million, up by 537.2% Y/Y. Adjusted net income decreased 20.5% Y/Y to $139.8 million.

Li Auto held cash and equivalents of $15.3 billion as of March 31, 2025, and used $234.4 million in operating cash flow for the quarter, down by 49.1% Y/Y. The free cash flow used was $348.7 million, down by 49.9% Y/Y.

As of March 31, 2025, the company had 500 retail stores covering 150 cities, 502 servicing centers, Li Auto-authorized body and paint shops operating in 225 cities, and 2,045 supercharging stations with 11,038 charging stalls.

For the second quarter of 2025, Li Auto expects revenue of 32.5 billion Chinese yuan to 33.8 billion Chinese yuan ($4.5 billion to $4.7 billion), representing an increase of 2.5%-6.7% Y/Y compared to the analyst consensus estimate of 32.94 billion Chinese yuan ($4.54 billion).

Li Auto expects vehicle deliveries of 123,000-128,000 for the second quarter of 2025, representing an increase of 13.3%-17.9% Y/Y.

The company attributed the fiscal first-quarter 2025 results to effective cost management and growing economies of scale despite the typical seasonal slowdown in auto sales and product iterations.

The company affirmed its ability to navigate market dynamics and achieve profitability with plans for continued growth through innovation and efficiency.

Li Auto is confident in its strategic initiatives, including the upcoming launch of its first battery-electric SUV, the Li i8, in July.

Price Action: LI stock is down by 4.30% to $26.70 premarket at last check Thursday.

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